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SALES AND YOUR OFFER PRICE
your offer price
When you prepare
an offer to purchase a home, you already know the sellerís asking
price. But what price are you going to offer and how do you come
up with that figure?
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.
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
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
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.