Real Estate

Why Sold Prices feature on is a valuable tool

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One of the features that we find very helpful on, other than the property search facility, is the “Sold Prices” feature.  You will find this feature on the top menu bar titled, you guessed it, “Sold Prices”.  Why is this important and who benefits most out of this feature?

Before we go into the benefits of this feature, it is important to have a basic understanding of the real estate market as far as property pricing is concerned.  The real estate market in Papua New Guinea is unregulated and the prices of houses are based on supply and demand.

The other important factor as far as Papua New Guinea’s real estate market goes is that there is not enough data available for the public to see.  This makes it very hard for sellers and buyers alike to consider what possible prices they should set when selling or what possible budget a buyer can consider for a given type of property in a given suburb.

In short, by not having an idea of what type of houses in a given suburb are being sold for it is quite difficult to know whether you are being offered a good deal, a price below market or a price that is exorbitantly high.  There are many property types and there is more than one suburb – each has its own pricing category depending on what the current market situation is.

One solution to knowing the market value is to engage a professional valuer as they do have most of this information.  The problem is that engaging a valuer costs money and as a buyer, if you were to engage a valuer to conduct a valuation for every property that interested you could be out of pocket before you even paid the deposit on the property.

That’s not to say that you can’t do it yourself because you can do your own valuation to a certain extent.  You can check real estate listings to see what the current sellers are selling for in a particular suburb and you can even use that won’t cost you money but a few minutes for a search.  But do take note that what is being offered by sellers is not necessarily the final price the property is purchased for.  As we mentioned earlier, it’s based on demand and supply and negotiations can shift the price up or down.

Now, coming back to the “Sold Prices” feature on, when you click the link it takes you to a list of properties and the prices they were sold for.  Some of the prices the properties were sold aren’t the same prices they were listed for.

So how does this “Sold Prices” help the buyer or the seller?

For a buyer, knowing this crucial data can put you on the front seat when property hunting because you already know or have an understanding of the price range for property types in a given suburb.  The information will give you an idea on whether a property price is too high, fair or too low which might be a bargain worth considering.  During negotiations with the seller, you can aim towards negotiating to get the price within the price range that you think the property is worth.

If negotiations don’t work out and the seller is still asking for a price beyond the “range” you think the property is worth, then you can always walk out.  Sometimes walking out from negotiations is not such a bad step to take because should the seller maintain the price and receives no favourable interest, the seller might come back to you to renegotiate.

For a seller, the “Sold Prices” feature is essential in determining what possible range they can price their property for.  Naturally, the seller will aim at setting it at the highest possible price and are prepared to negotiate.

Unlike buyers, most sellers will have a valuation report on hand and while this feature is still important to them, it’s more important for the buyer than the seller.

One of the drawbacks to the “Sold Prices” feature is that not every successful buyer will want to have their purchase recorded on the “Sold Prices” page and that is their choice.  But those who do should be appreciated for doing something that helps the market because if “Sold Prices” does influence the buyers in some way, it’s possible that the market too might react either in favour of buyers or sellers – again, it’s going to be based on demand and supply. But having data available is definitely helpful.

Here’s the link to the Sold Price page