You can’t hide it from me, you love the fireplace in the bedroom, hardwoods throughout, and even the kitchen that isn’t totally decked out.  The only question left is how much are you willing to pay for them?One of the biggest obstacles when buying a home is determining what to offer.  This is because many factors come in the picture.  The interest rates, fallen prices, the foreclosure market, and the greedy sellers overpricing their homes all fall on the table.  Your agent can reassure you that you’re not going to overpay for the home.  However, you can step in and do some research of your own.  Search the market and look for recent sales.  You’re going to want to look at similar homes that have sold in the past two to four months.  If you want to get a great feel, I suggest you get in your car and drive around the neighborhood.  This will give you a more precise idea of why homes have sold for more or less than the asking price.

When looking at home data, one thing that doesn’t show up in the numbers is value.  A home’s value can increase significantly over time which makes the previous information irrelevant.  Sometimes looking at the tax records to see what the seller paid for the property can be ridiculous.  A better option would be to hire an appraiser to estimate the property’s value.  This will give you some firing power when you’re making an offer.  The appraisal may cost you $300-$400, but if the appraisal comes in at a lower value you good evidence to back up the offer.

The information on the internet is available to you but I would consult with a real estate agent who deals with these statistics on a daily basis.  Doing your research ahead of time will get you familiar with the market, but don’t count yourself as an expert just from a few web pages.  When submitting an offer, a low ball bid might insult the seller and ruin your chances on that home.  You will need substantial evidence to back up a low ball offer.  Instead of putting in a bid lower than the sales price, you may want to ask for closing cost assistance or an upgrade of hardwood flooring. 

After a home has been on the market and the price has been reduced, the seller is typically becoming more realistic.  A way to help your cause is making the offer contingent upon an appraisal.  If the home appraises for less than the asking price, the lender will refuse the loan.  The only sure way to protect yourself is having a good agent that knows that market and putting the contingencies in place.  No lender is going to give you a loan if it doesn’t appraise.

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