How much should your offer be?

In most cases when making an offer, you typically know what the seller is asking. But how do you know what price to offer?

An educated buyer should compare recent sales of similar homes to come up with a reasonable price range. You can analyze information about the homes, such as conditions, improvements, current market conditions and possibly the reasons for selling. Realtors have at their disposal programs and tools that allow them to do Comparable Market Analysis (CMA’s) to help you determine if the asking price is within range of other homes in the area that recently sold. Two avenues of information are the public record and the Multiple Listing Service (MLS), both of which most Realtors have access too.

Comparable market sales are basically the recent sales of houses that may compare to the home you are considering purchasing.  Comparing prices of homes that are alike in areas such as square foot, number of rooms, bedrooms, and bathrooms, garage sizes, land area and construction types will help build a better analysis.

Realtors can give you a professionally produced CMA that may more accurately reflect market value and a fair offering price.

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