Let’s pretend that you are searching for a new home in Nashville. You find the “perfect” home and are ready to make an offer. There’s jut one catch: you feel the house is overpriced. So, how do you determine a fair price when making your offer? Making a low offer could offend the buyer and runs the risk of losing out altogether on the home. Then again, you don’t want to overpay either.
Here are some factors to consider when evaluating the price of any house:
It’s time to start researching. Check for recently sold comparable properties to see their sale price. A comparable property means one similar in size, condition, neighborhood and amenities. After you’ve seen the prices of recently sold, time to see other comps currently on the market. You can then compare these results to the home you want. If there are glaring price differences, chances are the home is listed for too much and the home seller has unrealistic expectations. One way to confirm this is to see if there are any comps of homes with similar price points that are STILL on the market.
How’s the area appreciating in general? What are the future plans for that area, neighborhood or development? For example, 10 years ago purchasing a home in East Nashville was more of a risk in terms of appreciation. Currently, it’s now one of Nashville’s hottest areas with even more plans for change and growth. Obviously, home prices have climbed significantly to reflect this.
Appraisal and Home Inspection
Both an appraisal and home inspection can play a big role in getting a fair price on a home. If multiple issues are revealed in a home inspection, this can give a home buyer considerable negotiating power on the price. Additionally, if an appraisal comes in significantly lower than the asking price, the home may not truly be worth it.
The bottom line is that getting a fair price on a home involves a lot of research and knowledge about market conditions. That’s why using an experienced REALTOR is the easiest way to guarantee you get fair deal.
If you are interested in finding a good home at a fair price, call DeSelms Real Estate today at 615.550.5565 and let one of our award winning agents help you negotiate the best price possible!