Is it helpful to know what a previous owner paid for their house before making an offer?

Asked by Sarah, Montana Fri Jun 27, 2008

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Rick Ahmann &…, Agent, Helena, MT
Sat Jun 28, 2008
There is no correlation between what a home owner paid and what the current value of a home might be. Take for instance the possibility that the owner remodeled or on the contrary has really "lived hard" in their home. In addition, Montana is a "non-disclosure" State. That means there is no public access to sales data and the only means of verifying a sales price might be to inquire with your REALTOR. WHat you really want to do is make sure you are paying market value for a home.

While knowing the price paid might be helpful to determine what kind of an offer to formulate, it will serve your needs better to have your real estate agent prepare a market analysis that compares the home you are interested in to the rest of the recent market. Our father was a real estate broker for many years and he always advised as follows...

"In the stock market it makes no difference what you paid for IBM, it will only sell today for it's current quote - whether you make money or lose money depends on when you bought that IBM stock! The same thing applies to the real estate market - you are not entitled to make money - only to sell at market value! "

In other words - you have to check to see what market value is! We can help recommend a broker in your market that can help with a determination of value as well as to represent your interest in a purchase transaction. Let us know!

Rick Ahmann
2 votes
Sarah, Home Buyer, Montana
Sat Jun 28, 2008
I appreciate your replies. Thanks!! :-)
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Bill Eckler, Agent, Venice, FL
Sat Jun 28, 2008
Absolutely, no seller wants to be put in a position to accept less then they paid for a property. When we determine a buyer is serious about a property we generally provide this information as well as comps for recently sold property in the area.

Armed with this information, you can proceed and develop a reasonable offer.

Great question!

The "Eckler Team"
0 votes
Mark Roncone, , Naperville, IL
Fri Jun 27, 2008
I would say yes if it had been purchased recently.
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