Determining Your Offer Price...

How much are you going to offer to purchase a home?

How do you come up with that figure???

Determining your offer price is a three-step process:

1. Look at recent sales of similar properties to come up with a price range. (This information can be provided to you by your agent.)

2. Analyze additional data such as the construction of the home, improvements made to the property, current market conditions, and the circumstances of the Seller.

3. Adjust your "fair" price and tell your agent how much you wish to offer!

What is a Comparable Sale?

Your agent belongs to a Multiple Listing Service known as the MLS. The first step in determining the price you are willing to offer would be to look at the recent sales of similar homes. This process is known as "comparable sales". Using the MLS, your agent can prepare a comparable sales list of homes for you that reflects homes similar to the one you are looking to purchase. Specifically, you want to compare prices of homes that are most similar in square footage, number of bedrooms and bathrooms, garage space, lot size, and type of construction. In a tract, you can generally find exact model matches to compare against each other. Your agent may also use public records to obtain the necessary information to prepare an accurate list of comparable sales.