Once you have finished your price estimation for a selected home, you need to negotiate a price with the seller of the home. Now, you are going to make an offer, and this is the start of the negotiation. Some sellers set prices above the price that they will accept. During negotiation this slightly higher price creates a buffer margin for them. Because of the higher set prices of homes, most sellers are willing to accept less than their original asking price. Remember, your goal is to make sure that you do not pay more than you have to for the home. Continue reading “Negotiate a Price” »

Remember, you are not an expert. If your valuation leads you to believe that a particular home is undervalued, you should get a second opinion before making a decision to purchase that home. An immediate option is to use real estate broker to help you assess value of the home. Continue reading “Obtain a Second Opinion” »

For example, you find the selling prices of three other homes in the same area. You want to choose homes that have a similar lot size, and that are about the same age as the home that you have chosen to purchase. The prices are $78,000, $81,000, and $66,000 for homes measuring 1200 sq. ft., 1350 sq. ft., and 1200 sq. ft. respectively. Continue reading “Calculate the Average Price per Square Foot” »

It is tempting to pay more for a home that you really like, and it happens all the time even in a down market. Still, you want to make sure that the price of the home makes sense for your situation and the context of your home purchase. Continue reading “Are You Going to Buy a High-Priced Home Now?” »