By Tim McKibbin, REINSW CEO
A property on Sydney’s Lower North Shore recently sold for over $1.5 million above reserve. This is what property professionals call an out of line sale.
The term suggests the price paid for a property is overtly more or less when compared to recent sales in the area. While value is subjective, understanding the value of a property you want to buy will help determine what you should pay for it. Is the property more expensive because it falls in a better school catchment area? Or has it been recently renovated? Is the property cheaper because it’s on a main road or under a flight path?
Ultimately, what you choose to pay for a property is up to you. However, if you are relying on finance for the purchase, you must ensure your valuation will stack up.