| Homes are usually priced based on their fair market | | | | a profit you may find yourself paying more to |
| value, an estimate of what a willing buyer would pay | | | | acquire the property. |
| a willing seller. Your first resource for determining this | | | | #5 What Did You Pay? - The market has most |
| price should be your real estate agent. | | | | certainly changed since the current owner bought the |
| The fair market value may be what a home can sell | | | | house. However, if the home was purchased |
| for, but not necessarily what it will sell for. The tips in | | | | recently, you may want to consider the price paid. |
| this article will help you determine what factors may | | | | #6 What Home Improvements Have Been Made? - |
| modify the price. | | | | The value of a home can be increased significantly by |
| It is important to understand who your real estate | | | | any major improvements paid such as new flooring, |
| agent is working for before divulging any price | | | | updated kitchen or bath, new roof, new siding and |
| information. If your agent is a buyer agent it is okay | | | | windows, etc. Your real estate agent can help you |
| to discuss. However, if your agent is working as a | | | | determine the added value any home improvements |
| dual-agent (working for buyer and seller) or subagent | | | | would total. |
| (working for the seller), they are required to tell all | | | | #7 What Improvements Are Needed? - An |
| parties what they know. | | | | inspection of the property should be conducted. You |
| #1 Know Your Market - Research recent sales of | | | | may find it beneficial to hire a professional home |
| similar homes in the area. Look at the most recent | | | | inspector. Major improvements or repairs can be very |
| sales since the market can change quickly. If you are | | | | costly and you would not want to pay full price for a |
| having a difficult time finding recent sales in your | | | | home and have to put additional money into it |
| market, research a similar neighborhood. | | | | immediately following the purchase. Your offer should |
| #2 What is the Current Market? - If sales are down | | | | reflect any costs you are going to incur immediately |
| you may be able to negotiate a lower price, but if | | | | following the purchase. |
| sales are up you may need to make a higher offer | | | | #8 Cost of conditions - If you want to include any |
| for the seller to even consider it. | | | | conditions in your offer you may need to offer a |
| #3 When was the Home Listed? - If the home is on | | | | higher price in order to reach an agreement. Your real |
| the market for a long period of time the seller may | | | | estate agent can help you determine the cost impact |
| be more determined to complete a sale and more | | | | of any contingencies you desire. |
| willing to accept a lower price. | | | | #9 Caught Up in a Bidding War - Similar to an auction, |
| #4 Reason For Selling? - If the seller has a new | | | | you need to be careful not to let a bidding war cause |
| home purchase pending on the sale of their current | | | | you to make a considerable change to your offer |
| home they may need to sell fast. The more | | | | price. While it may affect your approach to bidding, it |
| determined the seller is, the greater chance you have | | | | is safest to make a determination of the most you |
| at negotiating a lower price. If the owner does not | | | | are willing to pay for the home. If the bidding goes |
| have any need to sell, you are less likely to get a | | | | above that price you need to be able to let the |
| lower price. When the seller is looking exclusively for | | | | house go. |