Your Realtor can check the solds in that area that are simular & let you know the pice you should pay for the home. Dianne Mitchell

Barnes,

There seems to be a common thread to most answers. Your Buyer's Agent will gladly run comparable sales for those homes you are interested. If you are not familiar with buyer agency, then I suggest looking over sample documents on http://activerain.com/smith3gary

If you are not under obligation or contract with a buyer's agent, I suggest interviewing at least 3. Ask them what services they will provide and ask them to provide examples of anything you don't understand.

Good luck finding the right home at the right price.

Hi Barnes,
Send me an email to jeffdavisrealtor@gmail.com and tell me the address. I'll have an analysis done for you and email a price back to you in less then 15 minutes or its free. Ok its free anyways but sounded funny. Seriously 15 minutes from the time you hit send, time me.

To conduct your own market analysis, locate similar homes that have sold recently, are currently being listed (current competition), and have expired (priced incorrectly). Make sure you adjust for factors that affect the typical buyer in your delineated market area. Data supporting these adjustments are difficult to obtain, which is why it may be prudent to ask a Realtor for advice. Some factors to consider are:

1. Property rights
2. Conditions of Sale (Motivations of buyers and sellers)
3. Financing terms
4. Market conditions at the time of sale
5. Size
6. Location
7. Physical features
8. Economic characteristics

To learn more about valuation, go to Valuationhome.com where I blog about how macro and micro factors affect Real Estate Valuation.

Hello, Barnes.

Correct me if I am wrong, but I believe you are asking how to determine if the asking price for a particular property is fair, or if the property is over-priced.

Others have given you the same initial advice I am going to - secure a skillful, professional buyer's agent to represent you; someone you feel possesses the right mix of qualities to get the job done. Negotiating ability is key.

I see you are in the Utica / Shelby Township area. I am in the Farmington Hills / West Bloomfield area, although I am familiar with where you are located. What area are you looking to purchase in? I also know a very good agent on your side of town I would be happy to refer you to, if you want to stick with someone very close to home.

Thank you and hope to hear from you!


Derek Bauer, Associate Broker / Realtor
Real Estate One
Derek@DoorToDreams.com

Hello Barnes,
First I would find a Consultant like myself who has been in the industry for many years. The market is changing daily and due to this factor it would be in your best interest to deal with a full time agent who has is knowledgable with all phases of the real estate industry. Listen carefully to the suggestions offered after an extensive consutlation. During this time you will be questioned about your wants, needs, amount of money you can afford to invest, debt to income ratio etc... Once a determination is clearly understood, you will then be advised meet with a lender, get prequalifed and now you are on the road to find the house of choice.

There are many factors involved with the buying process however another major segment of the transaction is negotiating the sale. A good negotiator is skilled, will do an extensive study in preparation to position you for the best price and terms.

Good luck Barnes,
Rose Mary Simms
Keller Williams Realty
Novi, Northville, Michigan
Bringing Buyers and Sellers Together since 1982
http://www.rosesimms.com

Hi Barnes you can check the link below and see what other homes in the area are selling for so you know if the seller is out of line. But as Maureen said you really should have your buyer agent run comps of the solds for you. If you do not have an agent you can also check the city site and see what like homes have sold for in the past 3 months. The only problem with that is you will not know which were bank owned, foreclosed or short sales or which have tons of updates.

Good luck

Typically, I find out what percentage below assessed value the comp sales in the area are, then compare these to the active competition pricing to determine if a list price seems "out of line" for the area. If so, then I look further to determine if there are any features or enhancements, etc. that would justify a higher asking price. Keep in mind that, as a condition of any offer that involves a mortgage, the property must appraise at or above your offer price.
Regards,
Brian Luck
Keller Williams Macomb St Clair

Hi Barnes,

I am not sure what you mean by over marked the value.

If you have a buyer's agent, they will do a market analysis for you before you make an offer. This will help you to determine the market value of the home. Your mortgage company will also have an appraisal done in order for you to get financing.

Hope that helps!