“Wow, I would have paid that!”

If you’re house hunting, you’ve probably experienced moments where you review sales and think, “Wow, I would have paid that!” or “What a bargain!” This can often shape your expectations about what you can afford. However, relying on these impressions without knowing the full story can be risky.

Not everything that impacts a property’s value is visible to the naked eye.

Here’s a few examples:

• Sydney Water Sewer: If a sewer runs directly across the property, future renovations could be complicated and costly.

• Unauthorized Extensions: Modifications made without proper permits can lead to legal issues.

• Council Orders: A requirement to demolish or restore parts of the property can arise unexpectedly.

• Heritage Listings: These can restrict renovations and alterations, impacting your plans.

• Road Widening Notices: Properties may face compulsory acquisition if a road expansion is planned.

Case Study: 8 Brown St, St Peters

Last weekend, I witnessed an auction for a three-bedroom house at 8 Brown St, which sold for $1,330,000. A comparable property, 23 Brown St, sold two years ago for $1.6 million and is likely worth around $1.7 million today.

So, why did 8 Brown St sell for $300,000 less than people expected?

A hidden line in the council certificate indicated that the land was affected by potential road widening. Given its proximity to Campbell St, which underwent a widening from two to four lanes as part of the 2018 WestConnex project, the future implications on property value were significant. Even though the road will unlikely ever by widened further. 

This example underscores the importance of having a solicitor or conveyancer review your contract before making any offers, whether verbal or written.