Home buyers are sometimes faced with tough decisions including how or what they should offer for their home. One thing that gets homebuyers nervous is the shortage of real estate information on the web which only makes the offer price decision tougher. The most valued part of a home purchase is making and dealing with offers and its seen as the most nerve-racking. Taking this decision would be much easier for someone a clear understanding and value of the property he/she is about to pay for.
Some buyers think the decision can be made by doing some fancy math or by running spreadsheets. You need an offer that creates a great value for you and also has a high possibility of being successful for the property. A great deal cannot be done by a low and boring offer and can lead to losing the property. This as well applies to sellers who would set the list price for their property just to get more buyers knocking at their doors.
As a buyer or seller, there is an appealing list of steps which is a must for you to make the most out of your offer price;
- The (CMA) Comparative Market Analysis: The CMA is known to be the most reliable and widely used mathematical system for estimating or calculating your property’s true value which works similar to comparison shopping. A CMA works by condensing the necessary characteristics of your property some of which are bathrooms, bedrooms, lot square footage. The CMA takes this information and do a comparison with neighboring properties currently on the market or had just been sold. Your realtor can help to sort things out for you.
- Market Trends: Studying the local market around your property will help get a great value for your potential home to be. You do this from a similar approach which is seen as the first step to be taken in order to best determine a purchase price for the property. From this point, considering the trends that affect your local real estate market either in your city or neighborhood will highly assist to further narrow the offer price.
- Specific Facts About The Property And The Seller: Some homebuyers are fond of getting information from their realtors like the length of time each property they come across has been on the market. (DOM) Number of Days on the Market this system would help you know the average number a property has spent on the market with the use of your CMA. If the home you have plans of offering on has been longer than a couple of weeks on market beyond your area’s DOM, the sellers are known to have a higher motivational level and today’s sellers have been educated to understand the fact that the list price might just be too much. Whether you find yourself buying a seller’s or buyer’s market, a DOM that’s longer than the average one signifies that the property can be bought for much less than the normal price.
- Factors That Affects Property Value: Apart from the characteristics that the property possess, you as well need to take into consideration any others that actas an enhancement or a fall on the property’s value. Some factors to consider are:
- Is the property found in a school catchment neighborhood?
- Are there any chances of planned infrastructures to further better make services better or create pollution and traffic noise?
- Check for nearby transport services, are they to be expended by the local authority or to be reduced?
- Is the home located in a flood zone or potential to be attacked by a natural disaster?
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