Property cheat sheet: three ways to research the market like a pro

Real estate may be a passion, a hobby, a blessing or a curse… love it or hate it, we are all involved with property in some way, shape or form.

A property transaction may happen once, or twice, in one’s lifetime and being armed with a few key points may assist with making your purchase.

‘Property Cheat Sheet: three ways to research the market like a pro’ written by Emily Power (Power 2022): assists with researching the property market and has been included below, however and in summary:
1. Search and research the history of your dream home
2. View and observe multiple auctions
3. Understand and make informed decisions of similar properties

Purchasing a home can be a process and a lengthy one at that, however, making an informed decision will help assist in making the right decision for you now, and in the future.

Article: Property cheat sheet: three ways to research the market like a pro

EMILY POWER MAY 24, 2022

A property transaction may happen once, or twice, in lifetime.

It's an excursion into foreign territory, where the stakes are as high as the prices.

Before buying a property, do the homework to balance the raw emotion of the pursuit with the cold, hard numbers. Like choosing a long-term relationship, real estate decisions work out for the best when head and heart marry.

Here are three simple ways to fact find and research the market like a property pro.

1. Search the history of your dream home

Real estate is a public transaction and in the spirit of this, real estate agents will often (although not always, depending on the vendor's wishes) report the results to the major data collection companies.

These companies use these contributions to determine the clearance rate nationally each week, and more in-depth data is reaped in the long term.

It comes in handy for prospective buyers who want to check what a property has previously sold for.

Given that real estate purchases are a matter of public record, government land titles offices can offer the same infromation (albeit in a more complex format) or fill in the gaps.

Land registry bodies in each state and territory maintain the official records of who has bought and sold addresses and this is welcome to be accessed.

2. Treat auctions as a sport 

Auctioneers' advice - don't make the first auction you attend the one that you intend to bid at.

The property market comprises markets within markets, with their own variables determined by factors including nearby schools, infrastructure available or in the pipeline, and whether they rub shoulders with high-priced suburbs (experts have dubbed these cheaper postcodes "bridesmaid suburbs", AKA the second choice, and the spill-over of demand can stimulate prices).

This step is anecdotal evidence in your search, but getting a feel for how the market is faring in a certain price bracket is an enormous advantage.

That comes from standing on street corners, takeaway latte in hand, observing how properties perform under the hammer - note the ferocity of bidding (or the gentler rhythm of a softening market), the number of bidders, and whether it passes in or smashes its reserve.

Take a more confident run at the purchase of your dreams - and probaby the biggest of your lifetime - by watching auctions unfold for several weeks before taking your turn and playing for keeps.

3. Side by side 

Real estate agents use comparable sales to their listing to determine the price guide of property.

With all of the public information available, there is no reason why you can't do the same.

Track the results of like-for-like homes you are interested in with a simple spreadsheet.

Note down what the price guide is (easier in states where the price guide is disclosed on the listing, otherwise, you'll need to press the agent) and what it sold for.

A pattern will emerge. Understand the differences - bedrooms, outdoor areas, car parking, prestige level of the street or suburb - and observe the exertion they have on the outcome.

Knowing this granular detail will help you cull certain attributes from your inventory of wants versus needs, based on real-time affordability.