Your New Home – What Price is Right?
Every piece of real estate is unique. So prior to offering a price for your new residential home you have to do your homework. Finding homes that have sold recently and are comparable to your prospective house is essential
So what is a fair, or better the right price to pay for the residential home you want? Consider the methodology that the appraiser uses when assigning valuation to your home. An appraiser will consider the many market forces that affect the valuation. The appraiser attempts to reconcile various opinions and meanings to arrive at a fair and good number. Since no two pieces of real estate are exactly alike, it is often difficult to assign exact values when doing comparable sales. Adjustments have to be taken into consideration for different characteristics like building materials, amenities and lot size and location.
If all real estate markets were calm and the supply of homes equaled the demand then bid prices could be more easily valued for correctness. Unfortunately, this never occurs. There is either a buyer’s market where the supply exceeds the demand. Or there is a seller’s market where the demand exceeds the supply. This timing factor is what causes discrepancy and has the effect on the monetary worth of real estate to a prospective buyer and seller.
Market Value- represents the most probable price which a property should bring in a competitive and open market and the following conditions exist:
a. Buyer and seller are motivated
b. Both parties are well informed and well advised and acting in their best interests
c. A reasonable time is allowed for exposure in an open market
d. Payment is in terms of cash or in comparable financial arrangements
e. The price represents normal consideration for the property sold without being affected by financing or sales concessions by anyone associated by the sale
http://www.gainesville-florida-realty.com/Gainesville-Fl-Home-What-Price-Do-I-Bid
Why is an understanding of the market value of a home important to a prospective buyer? If you don’t have a clear understanding and knowledge of the homes sales data for the area then you could very well end up being classified as an uninformed buyer. To avoid this situation, find properties that that have sold, expired or are pending sale and are similar to the property you are considering to purchase. Covering a period of the prior nine months to a year is reasonable. If the house you are considering has been listed for a longer period of time than other similar homes that have sold there might be several reasons. It could be overpriced, there could be issues regarding financing or the interior of the house needs updating. Ask for the seller’s disclosure forms about the house to determine if anything major is mentioned by the seller
When purchasing a new home keep in mind that you are the general contractor. Realtors, lawyers, appraisers, home inspectors are all a part of your team. Their goal is to help you find the best home at a fair and reasonable value. The good news is that you are the boss. Ask the questions and demand the answers. Be respectful but demanding. After all, this is your new home that you have always wanted. You have already done your research (your plan) so you have a pretty good idea of what needs to be performed. Use the professionals when it is needed. But, let your good judgment be your guide.
Author: Jill D. Schmitt
www.gainesville-florida-realty.com
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