AM I PAYING A FAIR PRICE FOR A HOME?
TIPS FOR MAKING SURE YOU’RE GETTING A FAIR PRICE
Every buyer asks this question of themselves when they’re home shopping, and for good reason! There are so many factors influencing market value, and there’s a big part of sellers “playing the game” to make the most of their sale.
Here’s how to tell if you’re getting a fair price for the home you’re interested in:
1| LOOK AT COMPARABLE HOMES IN THE AREA
Most real estate sites (like Zillow and Realtor) allow you to search for properties that have recently sold. Start a spreadsheet and compare home sale prices amongst homes that have the same (or similar) number of bedrooms, bathrooms, and square footage as the one you’re interested in buying.
You’ll want to factor in any updates or special circumstances, too. Let’s say you’re interested in buying a three-bedroom, two-bathroom home in Middleton that’s listed for $450K, and another three-bedroom, two-bathroom home in the area sold for a similar amount. But, look closer. Is the comparison home on a cul-de-sac? Does it have a brand-new roof? You’ll need to dig in to your comparison homes to get a clear picture.
2| CONSIDER WHAT THE PROPERTY WILL BE WORTH IN THE FUTURE
Investopedia suggests that you consider how much the property you’re interested in will be worth with appreciation. Is there a new library or school being built nearby? Is a large company relocating to that neighborhood? These are just a few of the signs that a neighborhood will continue to appreciate.
3| TALK TO YOUR REALTOR
The very best thing to do to make sure you’re getting a fair price on a home is to work with a qualified realtor. They can look at something called a LP:SP, which is a measure of a good deal based on how much of a discount you can negotiate off the list price. Realtors will also have very specific market data, comparison property prices, and other important sales data that you can’t get by surfing Zillow. Plus… less work and less stress for you!
Make Cheng Real Estate Group your home-buying team. We can help you negotiate a fair (or better!) price on your dream home and answer all your questions. Give us a call today at (608) 957-2683 to get started.