Terrie Crowley

Michelle,
A property is worth what a buyer is willing to pay for it. Previous sales in an area tell you what other buyers have paid for like kind property. Comparable sales are simply a guidepost that has been used by folks to determine the approximate price range as established by other buyers. As a Broker, I avoid using terms such as "Low Ball" - it only serves to create an adversarial type of negotiations. We have been in a stagnant to deflationary marketplace and values have been going down in many areas. The caution on Comparable properties is when looking at them, be sure they are very recent - as something that may have closed 3-6 months ago, maybe not reflect today's value of like-kind homes in the market. Egos are sensitive in this marketplace - some agents are very worried about how they may be challenged by the sellers as they assured the sellers of the value and the buyers are painting another picture. Given the complexity of this marketplace - the challenges with financing, the huge inventory I encourage my clients and my colleagues to remember this is a business transaction and to keep cool heads and maintain objectivity. A properly crafted offer on a property is an "expression of interest". Additionally, when considering an offer, i encourage my buyers and sellers to consider the value of the property through the eyes of an appraiser or the bank. If the bank doesn't agree with the value of the house - it presents another hurdle in the transaction. Therefore, I feel it is critical to do your research and work with a Realtor that will assist you in presenting your offer in the most professional manner. The deal ultimately is between the seller and the buyer - agents are merely the facilitators. - Mon Jun 16 2008, 06:29