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    The House Next Door - What Did It Sell For?
    by Mary S. Seifried


    So you are ready to buy a house and the time as come to make an offer. It sounds simple enough, but many people find themselves baffled by how much they should really offer and how they will go about determining that amount. Of course you already know the seller's asking price. If you don't mind possibly losing a little money, then taking their asking price is fine, but remember, buying a home is not like going to the mall. Most prices are negotiable. There are basically three major steps to figuring out your offer price; comparing the sales of similar properties, considering the condition of the home and seller's motivation, and negotiating with the seller after determining a fair price. Comparing the sales of similar properties is the most overlooked strategy in this list, even though it really can be a huge factor in your negotiations.

    Not only do comparable sales give you insight into the approximate value of the house, but they also give you a reference point for understanding the range of prices that should be considered. The houses that you compare should be similar in the number of bedrooms and bathrooms, lot size, construction type, garage space, and square footage. It is also extremely valuable to consider the most recently sold houses you can find. The public service record and the Multiple Listing Service are two ways to find this kind of information.

    The public record is an open record, but without knowledge of this system, finding comparable sales can be quite difficult. The public record, recorded in the local county recorder's office, includes the deed from the seller to the buyer as well as other information known about the property. However, this information is about two months behind due to the pending time of a sale, and is often delayed even farther than that due to escrow. By the time the deed is recorded, the prices may already have shifted in a particular area or in the market in general.

    The Multiple Listing Service (MLS) is designed for those carrying a real estate license, that have joined MLS, to gather information about properties for sale and those sold. The MLS records are much more up to date, recording sales of listed properties when they close. Though the public can now view some parts of the MLS listing, only a realtor can see the amounts properties were sold for along with more property information. For this reason, it is important to have a real estate agent while looking to buy a home so that they can provide you with this information. Even though the MLS can show sale prices before the deed is recorded, this information is still somewhat delayed because of pending sales, waiting to become closed sales.

    Many agents have other methods for determining the sale prices of comparable properties. Professional courtesies in the real estate business are common as long as it is for comparable research purposes. Obviously a selling agent cannot disclose the sale amount on a pending property to another potential buyer, but for someone interested in another similar property, this is sometimes acceptable. Also, some brokerage firms post their sales on a board in their offices. These resources are not usually necessary in comparable analysis, but sometimes in tight markets you will want to find the most recent, similar property sold.

    Comparable property research is only one of the steps that should be taken in determining an offer price. When used in conjunction with a property condition analysis, research of current market values, and the seller's circumstances, it can give the buyer a great understanding of what kind of offer is most reasonable as well as beneficial, while also supplying the buyer with a little verbal ammunition for the negotiation process. It is very possible the buyer will end up knowing more about the value of the house than the seller himself.

    About the Author: Mary S. Seifried is a luxury and new home specialist and knowledgeable resource for Lake Norman Real Estate. She is also an Accredited Buyer Representative, providing the best properties Statesville NC Real Estate has to offer. For more information visit http://www.finehomesofcarolina.com.

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