The first thing our team does when we are interested in a property, is we do our homework & research by looking up comparable properties. This does not just apply for submitting a price but also when deciding on a fair price to sell your home. People want to know where you got your number from, and by showing you’ve done your research and can show proof of other comparable properties in your area provides knowledge and trust.
Here are a few steps you can take to determine a fair offer price.
1. Look at what recent homes have sold for in your area. Don’t look at what they listed their home for but what they actually sold for. Also look for properties for sale in your area, that have not sold yet and have been on the market for a long time. This shows that their property price could be too high or there could be some major problems with the house.
2. Remember as you are looking at this data to also look at the condition of the homes, the improvements that were made to those homes, the current conditions of the market and the reasons for the sale of those homes. For example, was the seller desperate for the sale etc. as this can play a major role in the sales price and can skew the numbers if you are not careful.
3. Check the current competition in the area. Are the comparable homes close to the one you are looking at, is the home comparable in square footage, the number of bedrooms and bathrooms. Is the garage the same size. Is the property lot the same size. Also, look at the type of home it is – is it the same type of construction. If it is a tract home with many other exact same homes in that area, you will be better able to compare it against an exact match for the most part.
This is where your Realtor comes in, they know the market inside and out and can advise you on how to put together a fair offer price. They will be able to efficiently look at the comparables, your Realtor has access to resources that you don’t to help determine what should be factored into a good offer, but it is good for you to make sure you do your research as well to better understand the market.