Dear Home-buyer 80,

If you have been out in the market place looking for property and have seen a number of properties in your niche, you will know the best one based on how it compares to other properties. An average buyer looks at 13 or more properties. Once you have seen that many properties, you know the best values and that is fair market value.

To be more analytical, you can have your agent do a Detailed Report on the market by researching Active, listings, Pending listings, and Sold listings. Depending on whether the market prices are going up or down, you focus more on actives or solds.

In King County, we are now at a 10 month supply of inventory. Once we get to a six month supply, we are at a balanced market. This means that the very best "deals" may show up in the Sold data, and may even cause a challenge with appraisals.

On my website, I have a valuable tool that compares data from Zillow and from Cyberhomes. It's a quick snapshot of value and to be more accurate, you would want your agent to do a market analysis, or detailed report.

It'll be best to have access to multiple resources for conducing fair market value (FMV) like the MLS for solds, days on the market (DOM) and other various comparable properties . In this case you're dealing with a bank owned/REO property, due diligence on the banks part has been assessed extensively. REO are usually priced below comparable active listings in the area. "Most" new construction REO's that you see on the market are priced to sell right away. The banks are the most motivated sellers on the market.

An appraiser will also give you their price opinion after you and the bank have mutual offer acceptance. If you're heading in this direction I strongly recommend representation (agent/REattorney). When you deal with REO properties the bank will have their own purchase and sale agreements that they want to use for their best interest.

Kind regards,

One more detail to add to the previous posts:

Make sure you get a market comparison of homes sold and not just listing prices. "Sold data" will give you an accurate gauge for value. Ask your agent to prepare this information for you.

Good luck, it is a great time to buy real estate!

Home-buyer-80 if you are working with an agent ask them to do a comparative market analysis for you which will look at all the homes that have sold in the area comparing them with the home you are interested in to determine a fair market price. I agree with Bryan, steer clear of the listing agent for this information. They represent the seller not you the potential buyer.

If you need further assistance feel free to contact me.

Agreed, the best way is to talk with your agent to have them take the time to do a pricing analysis on the property. It is also recommended that you avoid using the listing agent/on site agent in this case. If you are suspicious the price is unfair, make certain you are using an agent that will be able to represent you specifically and have no conflict of interest because they are representing the seller as well.

I hope I have helped in some way. If you have any more questions, feel free to contact myself or any of the other agents that may perk your interest.

Best Wishes,
Bryan Lovell

Ask an agent to help you do a market comparison / research to help you figure out current market value.