When you
prepare an offer to purchase a home, you already know the seller’s asking
price. But what price are you going to offer and how do you come up with
that figure?
Determining
your offer price is a three-step process. First, you look at recent sales
of similar properties to come up with a price range. Then, you analyze
additional data, such as the condition of the home, improvements made to
the property, current market conditions, and the circumstances of the
seller. This will help you settle on a price you think would be fair to
pay for the home. Finally, depending on your negotiating style, you adjust
your "fair" price and come up with what you want to put in your offer.
We can help you with your home search.
Comparable Sales
The first
step in determining the price you are willing to offer is to look at the
recent sales of similar homes. These are called "comparable sales."
Comparable sales are recent sales of homes that compare closely to the one
you are looking to purchase. Specifically, you want to compare prices of
homes that are similar in square footage, number of bedrooms and
bathrooms, garage space, lot size, and type of construction.
If the home
you are interested in is part of a tract of homes, then you will most
likely find some exact model matches to compare against one another. We
can help you with your home search.
There are
three main sources of information on comparable sales, all of which are
easily accessed by a real estate agent. It is somewhat more difficult for
the general public to access this data, and in some cases impossible. Two
of the most obvious information sources are the public record and the
Multiple Listing Service.
