How does the market decide price?

From a macro level, interest rates, employment figures, supply and demand are all examples of things that have a bearing on property prices.

More locally, we need to consider things like infrastructure projects, commercial activity, new developments in the area. Those factors, which are close enough to have an impact on a property's price.

When it comes to the specific property, we look at the characteristics of the block of land and any improvements (including the building itself).

When we've identified a specific property, we expect that someone will buy the property within a certain price range. For example, we might look at a house and assess it to have a 98% probability that it will be bought for somewhere between $420,000 - $485,000 (there are always a few occasions where some buyers pay silly prices and baffle everyone).

This price range is influenced by a number of factors, but the following two are most relevant:

1/ How prepared and equipped are the people selling the property?

2/ How prepared and equipped are the people buying the property?

Any inequality and we start to see movement away from the median price. If the selling team has the advantage, we expect to see a property sold at a price above market value. If the buying team has the advantage, we expect to see the reverse - a below market value purchase.

Q: What are you doing to ensure you're not out-gunned when buying property?

A: Get an experienced Buyer's Agent on your team to stack the odds in your favour!

Appoint your Buyer's Agent by calling Morpheus Property today on 1300 911 576.

Yours in property.