Ready to submit an offer?

When you're ready to submit an offer on a house, it's not too difficult to tell if the seller has over priced their house. With a little bit of research, you can find out if they are asking too much, or if their listing amount is fair.

First, houses will only sell for what buyer's are willing to pay in a specific market, which is why the agent's home appraisal is based upon comparables of recently sold houses. Fixing up a property can raise the value, which makes a difference, but the house must still sell within a reasonable range of comparable homes, or the neighboring houses listed on the market will get bought up, while the overpriced ones wait for a buyer that may never come.

Take a look at a list of recently sold listings. These are easily obtainable through a real estate agent. Determine what the highest, lowest, and median selling price is. Now consider the condition of all of the homes in comparison to the property that you're interested in. Is the house on the market more modern, have a better roof, or a pool in the back yard? How about the paint, flooring, and kitchen cabinets? The sold homes that represent the listed home the most are going to be the best estimated value of the home, not the listed price.

Sometimes people list their house for more because they've put a lot of work into it, or just love the home, but just because they are asking for more, doesn't mean they are going to receive it. If you really want to put an offer on a home that seems over priced, submit the comparables you've looked at along with the offer, so the seller knows where you got your purchase amount from and may be more willing to negotiate down.