Most buyers look to their agent for industry knowledge, and being able to provide home buyers with a step-by-step process of making an offer is exactly what Angels RE Group does well. Think it’s not complicated? Think you just throw out a price? Sure, you can take this approach, but we doubt it will result in a home purchase or a home purchase that feels right.
Again choosing the right REALTOR is as important as finding the RIGHT home. AngelsRE Group will provide you with a Fair Market Value (FMV). In simpler terms, it would be the value a buyer would be willing to pay and a seller would be willing to accept based on current market data.
In addition, here are some other factors that come into play when you are making an offer on your dream home:
1) Why a seller is selling? This data is not always available, but through agent conversation, it may be shared.
2) Know the pulse of the marketplace. Buyer’s market would have a different approach than a seller’s market.
3) What did the seller pay for the home when they purchased it? How much did they put down or do they still owe?
4) Were upgrades made during current homeownership? Most agents will have access to previous listings of the home an be able to peruse the data and photos. There are websites that will also provide costs or resale values for remodeling improvements.
5) Comparable sales are always the best way to start with formulating an offer and build from that data. Using home sales from three to six months depending on the volume of the market. Most appraisers will look out three months for closed properties to compare. Knowing price per square foot and validating square footage in tax records will be important in reviewing comparable sales.
6) Reviewing list price to sales price ratios will also provide insight for pricing. If we realize most homes sell for 2% less than FMV list price, then determine the price and allow an adjustment for negotiation. A home’s listing time on the market will help in determining at what point the listing was in FMV and then the the 2% can be factored in to price.
7) History of the home and days the home has been listed on the market will be a factor as well.
While some may think you just pick a number that sounds good, and extend the offer, Angels RE Group has determined that an educated and researched offer will always be a better approach to solidifying your dream home. You fall in LOVE with the house and we will do all the homework needed for making the best possible offer for all involved. Contact us at Angels RE Group, and we are happy to help you in your Scottsdale home buying needs!