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 trends, 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.

Comparable Sales

Specifically, you want to compare prices of homes that are similar in square footage, number of bedrooms and bathrooms, garagespace, lotsize,and type of construction. There are three main sources of information on comparable sales, all of which are easily accessed by a real estate agent. It is difficult for the general public to access this data, and some times impossible.

Finding Realtor

When someone decides it is time to sell their home, they interview several Realtors to determine which one is best for them. They want some one they feel will do an effective job at marketing their home. The advertisement will give a brief summary of a home available for sale along with the price, but it says nothing at all about the Realtor.

Listing Agents and Selling Agents

There are two "sides" to every sale, listing and selling. Mostly an agent represent seach side. Agents can deal with both buyers and sellers, but the majority tends to focus their efforts on one or the other. Some exclusively handle either buyers or sellers.Ask questions about education, experience,and focus.

Factors Offer Price: How Property Condition Affects Your Offer

Since you have viewed the property you are interested in, compare it to the general neighborhood. Put the home in one category - average, above average, or below average.

When evaluating a home's condition consider structural condition is most important - items such as walls, ceilings, floors, doors and windows and paint. Pay special attention to bathrooms and bedrooms and whether the plumbing and electricity work efficiently. Look at the fixtures, such as light switches, doorknobs, and drawer handles. The front and back yards should be in reasonably good shape.

The missing ingredient will be information on the condition of the homes from your comparable sales list. the right agent will have actually visited most of those homes and be able to provide key insights.

How Home Improvements Affect Your Offer Price

Even when comparing exact model matches within a tract of homes, you should note whether the previous owners have made any substantial improvements. Cosmetic changes should be largely ignored, but major improvements should be taken into account. Most important would be room additions, especially bedrooms and bathrooms.

Buyer's Lament- Did You Make a Big Mistake?

Full of imagination and optimism for the future, you wandered about each home envisioning a happy and contented life for you and your family. The first house might have been "too big," and another was "too small," but finally you found one that was "just right."So you made an offer and waited anxiously and excitedly for the counter-offer. Finally, you and the seller agreed on terms and you bought yourself a brand new home!