Deciding on an offering price

In preparing an offer to purchase a house, you should already know the seller’s asking price. But deciding on what price to offer and how to come up with a fair offer is next?

Deciding on an offering price:

Find recent sales of similar properties to come up with an offering price range. Then analyze additional information such as the condition of the home, any improvements made to the property, current market conditions, and any circumstances the seller may be facing. This should help decide a price that you believe might be fair to pay for the home. Lastly, depending on your and your agent’s negotiating approach, adjust for a fair price and come up with what you may want to offer.

Using Comparable Home Sales:

In determining a price you are willing to offer, look at the recent sales of similar homes, in similar neighborhoods. Doing this is called using “comparable sales.” Comparable sales are recent sales (6 months or less) of homes that compare most closely to the one you are looking at. Compare prices of homes that are similar in total square footage, number of bedrooms, bathrooms, garage area, land size, and type of construction, etc.

There are numerous sources of information on comparable sales, all of which are available by your real estate agent. It is difficult for the general public to access this information and in some cases almost impossible. Two of the most apparent information sources for finding comparables are public records and the Multiple Listing Service (MLS).

%d bloggers like this: