Many buyers make half-baked offers based on emotion, or at the suggestion of an unknowing family member or friend. What they should be doing instead; is first gain an understanding of the value of their new home.

The seller’s asking price? It’s mostly irrelevant to me. In a buyer’s market we can often expect sellers to accept lowball offers up to 10% or more off their asking price, but in a seller’s market, the opposite is true – with many buyers having to offer above the asking price, in combination with other tricks in order to get their offers accepted.

To understand a home’s value, we need to check for comparable sales within that same neighborhood that have recently sold. Your agent should be able to speak to you about how currently active listings, pending listings, coming soon listings, contingent listings, builder supply, shadow inventory and more – affect the value of your new home. We also need to fully comprehend HOW to do this; using the age, location, composition and physical characteristics of the home in relation to the comps. Evaluation of value is an art. You need an expert on your side. That way, before you invest money on a bank required appraisal, you have an idea where that appraised value will come in. If it comes in too low, you may lose the house.

To learn more about understanding the value of your new home, or to get started on your home search; fill out the form below or call 734-968-4359

Pro Tip

Did you know that the average agent might only sell 8 homes per year? Surprisingly – the agent who they’re working with may not even be qualified to help the buyer make a decision on what to offer!

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