It's OK to be 'Out of Line'
Market fluctuations, both up and down, create uncertainty. But more importantly, they create opportunity. The thing is to be on the right side of the curve and in a position to benefit from it.
“Out of line sales” is a term used to explain property transactions that simply don’t fall within the standard deviation of every other conveyance. In other words, the unexplainable result. If ten properties in a street trade in four months and they are all three bedrooms, two baths and two car garages on 600-650sqm and 9 of them fall within the $2-2.4 million range but the last one, for no apparent reason, sells for $2.7 (or $1.7) its described by professional valuers as “Out of Line”. Typically valuers will ignore it when analysing the market and focus on the other nine properties for their data.
BUT, what it also means is that someone just made a small killing!
In a rising market like we saw for 2014-2017, it is going to be more common to see the out of line sales being ahead of the curve (ie: above the market) while in a falling or stagnant market like 2018-????, it will be the under market sale that is more prevalent. Either way, it’s the people who are acting against the trend who are more likely to find the gem.
Researching meticulously over a 6-12 month period is the best way to recognise the opportunities when they arise. More often than not, they don’t hang around long. Maybe days, maybe hours or some off-market opportunities may never even see the light of day! One alternate is to engage the services of a buyers agent. A licensed professional who has access to the data and contacts needed to find the gem amongst the rocks.
There is always value in great property. Find it. Buy it. Love it.