5 Expert Tips to Assessing the Value of a Property in Bali before Making a Purchase
Bali has everything one could ever want; exquisite beaches, ambient weather, stunning landscape, diverse cuisine and a vibrant culture. It’s no surprise that this glorious island has become one of the most sought-after holiday destinations, with most visitors turning their short stays into permanent stays or pooling their money into acquiring a holiday home that they can frequent whenever needed. It is also progressively attracting investors who’re looking to cash in on its rapid growth and build a healthy property portfolio. If you’re one of those people looking to get their hands on a beautiful home, then you need to know that it’s not going to be easy. Most of the so-called trustworthy agents trying to sell you villas or land can lure you in with the usual marketing fluff of ‘value for money’ or ‘best deal’ – but it’s only after the purchase that you’ll realize you’ve been taken for a ride.
If you’re a first-time investor, know that carrying out a value assessment of the property you’re planning on purchasing is highly important to determine if it’s actually worth the price you’ll be paying. Here are five tips to assess the approximate value of a property in Bali:
#1 Check Sales in the Local Area
To get a rough estimate of your property value, look at the sales that have taken place within a 1 km radius of the property you’re interested in. Consider the most recent sales that have taken place in the last 3 months. The more recent it is, the more accurate is your measure of the average property value.
#2 Compare Similar Properties
When making comparisons, compare properties that are more or less similar to the one you intend to buy. There’s no point comparing a condo with a beach-front villa! Some of the factors you need to consider when making these comparisons include the dimensions, property condition, and of course, any added features such as a customized interior or swimming pool.
#3 Consider the DOM
The DOM or the Days on Market specifies the number of days it takes for the property to sell from the point of listing. If the property has been in the market for far too long, then it’s very likely that it’s overpriced. Remember that asking price doesn’t equate to the value of the property, so it’s vital to carry out the necessary research and then make an appropriate offer to seal the deal.
#4 Keep a Tab on the Market
The real estate market, especially of Bali, is highly dynamic. Prices fluctuate and even a span of 3 months can alter the current market climate and render old prices irrelevant. You need to understand the current market wave to assess where it’s headed. Talk to an expert or go to auctions and open houses to get a fair idea.
#5 Get Your Facts from Reliable Sources
The seller and the real estate agent trying to persuade you into buying the property are NOT reliable sources. Sellers are either too emotionally-attached to the property or get carried away by greed and agents are more likely driven by the prospect of making hefty commissions. Trust only an information source that bases the value on facts and statistics. You can always tap into Exotiq Property’s extensive database to get the right value assessment of the property in question.