A good price is about $740,000. I would walk past $760,000.

• 16 Katoomba Avenue is on offer via private treaty with a Domain price guide of $720,000 - $750,000 and no auction booked. It has been on Domain for 29 days, inspection Saturday 15 August at 11:00am. Supply in the suburb is thin so there is not much for buyers to fall back on.
• It is a split-level 3 bed / 2 bath / 1 car house on 604m2, positioned as a dual-occupancy setup - the upstairs is the main 3-bedroom / 1-bathroom dwelling with the original laminate kitchen (late 1990s / early 2000s vintage, dated but functional), and downstairs there is a separate kitchen + 2nd bathroom + living area with its own external access via a timber staircase down the side. That downstairs setup is what the agent means by 'endless potential' - live upstairs and rent downstairs, or use as extended family accommodation. It is not a formally-approved secondary dwelling on the council records, so it is FLEXIBILITY not lender-recognised dual-income.
• Condition is dated throughout - both kitchens are original 1990s/2000s vintage, the deck railing is old painted timber, the interior has vertical blinds and timber-look laminate flooring, no updates. A $40k-60k cosmetic refresh would lift the whole property. No structural issues visible, no flood, no bushfire. Land 604m2 is generous.
• A dated split-level 3/2/1 house on 604m2 with a de-facto dual-occupancy setup.
• 25 Taronga is the anchor. It sold for $800,000 three weeks ago and adjusts to about $792,000 today. From there, the subject has upside from the dual-occupancy setup (~$30,000 for the separate downstairs kitchen + bathroom + external access), offset by a bigger downside from the confirmed dated finishes (~$70,000 - both kitchens photo-verified as original 90s/2000s and a cosmetic reno would run $40k-60k). That lands 16 Katoomba at around $752,000 today. On the same basis 39 Katoomba reads $750,000. Two independent same-size twins converging at $750,000-$752,000 - and 67 Emu at $665,000 sets a defensible floor at the bottom.
• The AVMs cluster around this level: CoreLogic $709,000 to $783,000 (mid $745,000, High Confidence) and Domain $600,000 to $800,000 (mid $700,000). Both mids sit inside the $720,000-$750,000 guide range - the guide is HONEST, not quote-under.
• Against that, the vendor is a long-hold owner with no acquisition-price anchor forcing a target (RP Data records only a $0 transfer in 1991), 29 days on market is approaching the softness zone, and private treaty means no auction pressure.
• A good price to pay is around $740,000, still fair up to $755,000, and anything above $790,000 starts feeling expensive against the comps for a house that needs a cosmetic reno. I would open at $720,000 (dead bottom of the guide) and be ready to walk past $760,000. If the campaign drags past 40 days, vendor sensitivity will open up and the low $720,000s becomes real.