How much should you offer?
For many prospective homebuyers, one of the most difficult moments in the home-buying process comes when they have to decide how much to offer. How much is the home really worth? How low is the owner willing to go?
A good beginning strategy is to ask your real estate agent for a list of "comps." Comps are comparable homes that have sold recently which are similar in size, location, condition, and features to the one you want to buy. By comparing the sale price of the comps with the price of the home you want to buy, you can get a pretty good idea whether the one you want is realistically priced.
Depending on the type of market, homes may sell for above, at or below the list price. Keep this in mind when discussing comps with your real estate agent. Also, the condition of the market may vary between neighborhoods so it is important to consult with your real estate agent to understand how best to create your offer.