See as many homes for sale in the same neighborhood as you can.
Step2
Check recent sales in the local newspaper.
Step3
Get a list of recent sales in the area from local real estate agencies.
Step4
Consider resale value - a three-bedroom home is usually more desirable and easier to sell than a two-bedroom home.
Step5
Decide on the top price you are willing to pay, and plan to offer less than that amount (typically 5 to 15 percent less, depending on the market and how long the home has been for sale). Leave yourself room to negotiate.
Step6
Consider items other than price, such as seller credit toward closing costs or down payment, repairs and warranties.
Tips & Warnings
When comparing recent sales of other homes in the area, remember to compare homes of similar size, based on number of bedrooms, number of bathrooms and square footage.
Start low. You can always increase your offer.
Adjust your offer to the market. Homes for sale in a seller's market (rising prices, low inventory) provide less bargaining power. A buyer's market (falling or stagnant prices, high inventory) allows for more bargaining room.
on 3/16/2008
This is great advice! Anonymous, I feel bad that you feel that way about agents, I am a very honest and reliable Realtor, if at anytime you need any questions answered please do not hesitate to send me an email.
on 11/22/2005
Many states, such as Maryland, have easy-to-access online info on every house sold, including last sale date/price, interior area, lot area, age, bedrooms/baths, and assessment. Helps to create a small comparison group of "like" nearby properties.
on 11/22/2005
Agents may not always be trustworthy! Check your agent's background before you decide to work with him/her. Make sure s/he is honest, willing to work hard for you. Some bad buyer agent will try to cheat you to get higher selling price for more commission!
on 1/9/2008
Be aware of the market, because if it's a seller's market and your home is in a prime location, bidding low may lose you your house to another bidder. Be aware of how long it's been on the market. If you love the house, be willing to pay for it.
on 11/22/2005
Your realtor is a "buyer broker" in most states. She can do an informal market analysis for you at no charge to give you information about recent, similar sales and on-market properties.
Comments
georgiarealtor said
on 3/16/2008 This is great advice! Anonymous, I feel bad that you feel that way about agents, I am a very honest and reliable Realtor, if at anytime you need any questions answered please do not hesitate to send me an email.
Anonymous said
on 11/22/2005 Many states, such as Maryland, have easy-to-access online info on every house sold, including last sale date/price, interior area, lot area, age, bedrooms/baths, and assessment. Helps to create a small comparison group of "like" nearby properties.
Anonymous said
on 11/22/2005 Agents may not always be trustworthy! Check your agent's background before you decide to work with him/her. Make sure s/he is honest, willing to work hard for you. Some bad buyer agent will try to cheat you to get higher selling price for more commission!
Anonymous said
on 1/9/2008 Be aware of the market, because if it's a seller's market and your home is in a prime location, bidding low may lose you your house to another bidder. Be aware of how long it's been on the market. If you love the house, be willing to pay for it.
Anonymous said
on 11/22/2005 Your realtor is a "buyer broker" in most states. She can do an informal market analysis for you at no charge to give you information about recent, similar sales and on-market properties.