Making an offer on a house isn’t just guesswork!
Getting a feel for the fair market value of your potential home by comparing it to similar homes in the area is the critical first step to determining the purchase price you should offer. Make sure you also take into consideration the real estate in the neighborhood to narrow the down the price range even further.
Here’s some of the most important terms, facts and figures to know about when making an offer. If some of these measures and numbers seem a bit complicated, DON’T WORRY! Your Realtor will guide you though all of this so you can make the best offer possible!
Comparative Market Analysis: A CMA is the most widely used, reliable, and mathematical method of estimating the true value of “your” property, and works just like comparison shopping. A CMA compares the subject property and its essential characteristics such as number of bedrooms and bathrooms, etc. with nearby homes that are similar and are currently for sale or have recently sold. Specifically, your Realtor will get into MLS and search for properties.
Sold Price, Not List Price – Pay special attention to the difference between the list prices and sold prices. The list price is the “asking” price, while the sold price is the price a buyer actually paid for a property that SOLD. For that reason, the sold price has the most informational value and relevance to your offer.
Adjusted Average Sales Price – Your Realtor will conduct this analysis for you. And they will have the expertise to gauge how much – and in which direction – to adjust the average for square footage location, or the recency of the sale.
Degree of Similarity between Your House and the Comps –Compare properties that are similar to the one you are interested in purchasing. A highly similar comparable is one which lines up closely with the home you’re looking at on the following criteria: beds, baths, square feet, lot size, features & upgrades, condition and location.
With over 900 Licensed Real Estate Professionals in the Long Island and Metro Area, Charles Rutenberg Realty can help!
Click here to search for a Realtor in your area or by language!
Contact Charles Rutenberg Realty at 516-575-7500 or information@crrli.com.
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