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Determining Your Offer Price
By Florin Copaceanu
After weeks of seeing homes for sale, you've finally found the house you want to buy. If you are thinking of making an offer, don't be too anxious or act hastily. Taking your time to carefully study the house as well as the environment before determining your offer price, will result in a better price for your house.
As soon as you have found your dream home, let the sellers know they'll be receiving your offer shortly. Then, determine your offer price carefully.
Initially, you'll need to know about market conditions, so, the first step will include looking at recent sales of similar properties to come up with a price range. When you are making comparison of properties in terms of sales, be specific and compare those houses that are similar in square footage, number of bedrooms and bathrooms, garage space, lot size, and type of construction. These market conditions are external to the property, yet cannot be ignored because it has the ability to greatly influence your offering price.
After knowing the comparable sales that structure the market condition, start to evaluate the property itself and compare it with the other houses in the environment. Property specific considerations means you should examine the house in terms of the feature it offers, namely the number of bedrooms, bathrooms, square feet, lot size, and many more.
To get the exact data regarding the comparison, both in terms of sales and in terms of property features, you should use a Comparative Market Analysis (CMA). The CMA is a tool designed to compare the subject property with other similar properties in the neighborhood. A well-prepared CMA is critical in helping you to settle on a price you think would be fair to pay for the home.
Consult your real estate agent about CMA. A CMA form usually includes:
-Listing Date
-Listing Price
-Listing Expiration Date
-Sale Price
-Sale Date
-Number of Days on the Market.
The CMA would not only include homes currently for sale or sold but also those houses which were listed but didn't sell.
In performing the assessment, it is recommended that you seek professional help to determine the value of the house. You would then establish an offer price based on the comparables and the assessment. The rest is negotiable from that point on because the final price would depend on your negotiating style!
Good luck in getting your new home, at the price you want.
About the Author
Florin Copaceanu is a Real Estate Agent in New Market, VA. He has a passion for helping people find the best place to call home, and always goes the extra mile. Visit him at http://www.yourvirginiahome.com/ For more articles by Florin, visit http://www.free-content-resource.com/
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