Of all items that make up an offer to purchase real estate, price is by far the most important. For a buyer, how much to offer may be as difficult a decision as which house to buy. Although your real estate agent is likely reluctant to name a price for you, you can utilize your agent's expertise to figure out a price to offer when buying a home. Here is a short list of steps you need to take to make a smart offer-one that gets you a great value but is also likely to be successful at getting property.
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Check Out Comparable Properties That Are Currently on the Market
Comparable sales are recent sales of homes that compare closely to the one you are looking to purchase. Look for comparables that are very recent sales (3 months or less before your listing or buying), very similar properties (i.e., same number of bedrooms, bathrooms, square footage; and similar style, condition and amenities). This will help you come up with a price range. Buyers should work with an experienced, local agent to understand what the home’s value is. Most buyers agents will do this by offering you a look back at similar properties that have recently sold.
2. Look at Comparables That Were on the Market Recently but Didn't Sell
If the house you're considering buying is priced similarly to homes pulled off the market because they didn't sell, the property you're considering may be overpriced. Off the market properties will always be higher than the median prices of the comparable sales.
3. Consider Market Conditions and Appreciation Rates in the Area
