Question Details

Michael and…, Real Estate Pro in Manalapan, NJ

I am ready to make an offer on a home I like. How do I know if my offer is not too high or too low?

Asked by Michael and Sue Schneider, Manalapan, NJ Wed Apr 23, 2008

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In this market, I would strongly suggest you have a Buyer's Agent. If you are not sure if you're agent is working as a Buyer's Agent for you, then ask. This is key to not only price but all the negotiations and contingency follow through in your offer.
A Comparable Market Analysis should be done on any home you are interested in making an offer on. That information w/ the additional local transfer taxes recently paid on comparable properties and tax assessments to sales price ratios should be included. Pay close attention to the most recent sold comps. An experienced Buyer's Agent will or should know the market, be able to education on that particular local real estate market and give you sound advice and negotiate in your best interests.
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0 votes Thank Flag Link Wed Apr 23, 2008
Hopefully, you are being represented by a Buyer's Agent who you trust. If you are, that agent should be reviewing comparable sales with you and helping you to make a wise decision. If there are no comparables in the general area, your Agent can help you compare properties that are similar, but in a different location. You might also consider having an appraisal done on the property prior to making your offer.
0 votes Thank Flag Link Wed Apr 23, 2008
Your agent should do a comapartive market analysis on the home you are interested in using data pulled form both the MLS in your area and tax records so to include For Sale by Owner info too.
0 votes Thank Flag Link Wed Apr 23, 2008
I agree. By the time you feel comfortable to make an offer, you should have a good idea what kind of market you are in and what a good offer will be. Work closely with your broker, have them complete a comparative market analysis with the sold, pending and active listings. Pay close attention to the price per foot on the sold listings. If possible, try to use homes in the neigborhood and that have closed in the past six months. Above all, listen to your brokers advice, that's why you hired them.
0 votes Thank Flag Link Wed Apr 23, 2008
You should have your agent check comps for homes that have recently sold in that area.
0 votes Thank Flag Link Wed Apr 23, 2008
Have your REA:LTOR pull the SOLD comps in the same area if possible, try to verify that the properties are very similar in size, age, condition, etc. Is the home for you residence? If so, then remember most people purchase a home once or twice in their lifetimes, and you usually will be gaining equity for quite sometime. Also, do your inspections and review all disclosures with your agent. This is how you know if your offer is too high or too low "for you".
0 votes Thank Flag Link Wed Apr 23, 2008
Find a Realtor you can trust and get him/her to give you a detailed market analysis on the home. Then you can make an educated offer.
0 votes Thank Flag Link Wed Apr 23, 2008
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