If you are actively looking to purchase real estate in Victoria, you will have noticed a link to the “Price Guide Details” on every residential property in Victoria.
Otherwise known as the Statement of Information, it is mandated by Consumer Affairs Victoria to provide prospective buyers with an estimated selling price range for the property. This is useful where the property is going to auction, or where “Contact Agent” is displayed rather than the price.
It also offers details such as the median price for the area and a list of 3 recent comparable sales, which aims to give the buyer a better understanding of the property’s market value. For private sale properties a range is used to indicate the area in which the vendor would consider offers.
For auctions, it is expected that the reserve price will be set at a point within the quoted range, but of course, bidding on the day will establish the ultimate sale price and can often exceed the top end of the range.
If you are looking to buy a property, don’t hesitate to ask the agent as many questions as you need to, before making an offer you feel comfortable with.
Until next week,
Nick Lord (Director)