how do you know how much to offer on a house? What things do you look at?

Answer 1

it depends on the area of the country, if it is on an area that is still appreciating, then i would start at 95% of asking price, if it is a stagnet market i would start at 90% and if it is a declining market like florida i would start at 80%. as for what to look at i would look at homes that needs very little attn and always get a home inspection done to assure what your getting, if you want a fixer upper than take 4 times the cost of repair off the asking price in addition the above numbers.

Answer 2

You look at the appraisal. There are three sorts of appraisals- replacement cost, highest and best use, and comparable sales.

The first might be more applicable for insurance purposes. The second can be a bit theoretical, unless the house is on Main Street and could be an income-producing property. The last is what most homes use.

Comps can be easy (like for a condominium) or a bit tricky (in a neighborhood where houses are one-of-a-kind. You can use price per square foot to begin with, but remember, a small house at $200/square foot won't give you much to work with if you're looking at a large house, whose price might be closer to $150/square foot. And both houses might be fairly priced. This is where you've gotta sit with your broker and look at his print-out. He'll have MLS info for other houses listed *and* other recent resales. Study those, talk to him, and see what the two of you come up with.

The working definition of a house's value is "what the seller would get if he didn't have to sell and what the buyer would give if he didn't have to buy."

A year ago, the value of a house frequently was more than the listing price. Today, it's a lot less. Check the listing- is it a "resale" or a "short sale?" A short sale will require the lender to approve the price, making it a bit more difficult if you offer less than the listing price. Given today's market, this may work for you or against you.

What to look at? The house itself and its surroundings. Is it right for you? Does it have what you need- enough bedrooms, RV parking, a garden, privacy fencing? When was the roof installed? Check the age of the water heater and furnace and aircon. Any issues with plumbing, natural gas or electrical?

Check the schools, if that matters to you. Do you have a decent commute? And while you're looking, it's always a good idea to say hello to the neighbors. Is that a slack-jawed jokel next door, or merely a friendly, casual guy? Check with the police- how many calls do they make to the neighborhood.

And on a very subjective level, walk around, look at the rooms and see if something resonates within you that makes this "home" for you.

Answer 3

You need to look at comparable sales in the area. Have a realtor do this for you, they will know how to calculate what is a fair market value of a house.

When looking at comparable sales in the neighborhood, you need to account for ammenities that the houses may have or not. Unless you know how to do this I suggest using someone in the business.

Answer 4

What is the market for homes in the neighborhood? Is the home in good shape? How quickly does the seller want to get out of the house? How quickly do you want to get into the house? What is the square footage? What is the market price per foot?

Answer 5

You need to look at your Realtor's CMA.