As everyone else has said, you should seek outside help. Wether it be an appraiser or a Realtor you should get some help. In the end you are going to need an appraisal even if you are using an agent. When you do get ready to make an offer just make sure that it is going to be contingent on the house appraising that way if the house does not get appraised for the contract price you will be able to get out with out loosing your earnest money.
Having said that, Larry said it best, a house is worth what you are willing to pay for it. It sounds like this house has a lot to offer you and has some collective features that are difficult to come buy. Best of Luck and have a great day!
In the event you donâ€™t feel 100% sure you can handle all these variables, you may want to consider to hire a RealtorÂ®. He or she will represent only your best interests. Please ensure whoever you may choose is highly qualified to represent you on the purchasing side (Accredited Buyer Representative) and trained in all possible real estate scenarios (short sale, pre-foreclosure, builder about to file bankruptcy, etcâ€¦). I have been in the business for 5 years now, my company requires me to hold the highest standards in the industry as far as knowledge and customer service. I am an ABRÂ® as well as Certified Skilled Negotiator. Cherokee and Cobb counties are my areas of specialty. You can visit my web site at http://www.SellingATL.com , email me at swade@prudentialGA.com or call me at 404-547-6077 anytime if you choose to entertain the idea of not doing this aloneâ€¦. My best regards and good luck to you. Stefania Wade, REALTORÂ®,ABRÂ®,CSN,Relocation Specialist
A Real Estate agent will get you close, a GOOD appraiser like Michelle Saye with Almost Home Appraisals at 678-591-8946 will not only get you a price but the appraisal will be so detailed that a bank might be able to use it in the event that you do make an offer.
The good news is that unless you are buying it with Cash, the home will have to be appraised anyway.
If you are not using a realtor to represent your interests, please read ALL of the terms and rules of the auction house carefully. Get an inspection done by an ASHI certified inspector. Go to the county recorder's office where the property is located and ask the clerk to assist you in identifying recently sold properties to determine a fair value. You will need to figure out $/sq ft, condition, and location and then make adjustments according to how the subject property really compares to those sold.
I hope you are using a REALTOR and if not, please contact one to assist you and watch out for your best interest. If you need any recommendations, please do not hesitate to contact me.
Best of luck
You mentioned that the home is "one of the biggest", but not necessarily the most expensive. If it IS the most expensive because it was overbuilt for the neighborhood, I'd strongly advise that you DO NOT pay much more than the average price in the subdivision. To do otherwise would make someone else's mistake your own.
If you're purchasing without financing, get an appraisal and make your purchase subject to that appraisal being equal or greater than the amount you have agreed to pay. if you're using a lender, ultimately, it's the lender's appraisal that will be the one that counts, and that will force an adjustment in the price.
Appraisals are coming in tight these days, and that's good. If the subdivision doesn't have sufficient comps to justify the asking price, consider that a warning. If the appraiser is liberal in their appraisal, you may end up buying a home that could turn out to be a poor investment. So, I can't say it enough. Be careful!
To answer your other question, "What is a fair offer?". I'd say, what you're willing to pay based on the information available to you. The seller has a right to ask whatever they want for their property, but it has to be based on more than their desire to make as much as they can. Make an offer that you feel is reasonable, support it with the facts as you see them, and be prepared to walk away if they won't accept reality.
RE/MAX Greater Atlanta
I had the same exact problem with my listing in Acworth. So, I had my seller's get an appraisal done so we could accurately price it and gauge all the incoming offers. You may want to suggest that the seller's have an appraisal done. Regardless of the offer though, it will come down to how much the seller is willing to give up and if they are financially able to meet your request. Eitherr way, you will have to have an appraisal contingency attached to your offer to protect you! Your Realtor should know how to protect your interests. Best of Luck. :) Valerie Corpora-Ellis 770-262-8480