As a buyer, if you like the home, then go for it. When your lender appraises the home, it will not grant the mortgage if you are paying too much. You will also have the tax advantages that come with home ownership.
You cannot sharp-shoot the bottom of the market, With lot's of inventory and low interest rates, it really is a great time to buy a new home.
Has the homeowner asked for a realistic price based on an appraisal? Have they compared the appraisal with the CMA I provided them with? I expect homes to sell high or low depending on many variables. Sometimes homeowners inadvertantly price their homes too high for the current market conditions. Sometimes buyers make unrealistic offers on a home. If two or more buyers are interested in the same home and engage in a bidding war, then the possibility exists that you may obtain asking price or even better... There are just too many variables to consider to make that decision.. even as just an average. Every home sale is different.
If you have any further questions please feel free to contact me.
William (Bill) Faulk
Century 21 American Homes
Certified Buyer Representative
Senior Real Estate Specialist
Century 21 Princeton Properties
A home will sell for whatever a buyer will pay, which is usually fair market value. Remember buyers will only put offers on homes that they percieve to be a good value. They walk away from homes they feel are overpriced. If you are in the market for a home my best advice to you is do your research by going to open houses and getting an idea of value by what is being offered. Public records also show the closed prices of sales in your area and this will give you an idea of what the market values are. Remember when you buy a home- after you sign a contract the bank you go to for your mortgage loan will send in an appraiser to make sure the home is worth what you are paying for it and that it is a good investment for both you and the bank.
If you are concerned about pricing you may opt to work with an agent in the capacity of a Buyers Agent. This means the Realtor you are working with has a contract with you to represent you during your home purchase. That agent works in your best interest and provides info on current pricing and comparable home sales in the area as well as other information that may effect your purchase. They become your exclusive agent and you work solely thru them.
For more info on buyer agency give us a call or stop in.
Broker/Owner Westcott Group Real Estate Company
17 Deer Park Avenue
Buyers determine market value by what they are willing to pay.