1. Look for local trends: Start by checking local listings. An agent can send you new listings directly to your email address as soon as they hit the market. As you narrow your search, it might help to attend a few open houses to gain an understanding of pricing trends and observe how much interest is being paid to the homes already for sale.
Have your agent perform a comparative market analysis. This will show you the past sales prices of homes in the area and allow you to contrast those statistics with the current homes for sale. Pay close attention to a comparative property that is much lower than others. It may have been a foreclosure sale.
2. Research the numbers: After you have compared the list prices of the homes you are interested in with other homes that have sold in the area, there are a few assessments of value you should consider. The most important estimate of a home’s value will be a professional inspection. Inquire whether the seller has an inspection report to review.
Another statistic to compare a home’s value is the assessed tax value. (Understand the property may not be exactly accurate with the town records.) It also doesn’t take into account the amenities of a home, upgrades to the property or the nuances of the housing market. Work with your agent to compare the details and don’t forget to consider such factors as the quality of the neighborhood, local schools and even how the home matches up to your long-term goals.
3. A Buyer’s Market: Consider the local housing market as compared to the national trends. Ask your agent for recent town and neighborhood statistic reports. Real estate is local and values are based on what is happening locally. It is quite possible that a particular area may not be affected by national market trends, due to supply and demand in a desirable area, creating a small seller’s market within a broad buyer’s market.
4. What about the fine details?: Ask your agent to find out how long the home has been on the market and the history of the list price. It is believed that if a home has been for sale more than 30 days, sellers are often more motivated to sell and are more receptive to lower offers.
In addition to the time spent on the market, try to find out if there are any additional factors that could motivate the seller for a quick sale. For instance, if the seller has purchased another home or is relocating to another state, you may receive a better response to your offer by asking for a closing date preferred by the seller.
After taking all these factors into account, you should feel confident in your offer. You know you will not be overbidding or underbidding — an error that could discourage a seller from further negotiations.
Lastly, try to remember that the process of evaluating a home is not an exact science. Each time a house is sold the sale price will represent careful negotiations between the buyer and seller. The right home should not only represent a good value when analyzing comparative properties, it should also be the best value for you and your family’s needs.
Anne-Marie McKenzie & Associates are affiliated with Allen & Selig Realty in North Yarmouth and can be reached at 829-3339 ext. 111 or ammckenzie@maine.rr.com.