Whether the market is more favorable to buyers or sellers, all buyers of new homes share one thing in common–they don’t want to be “taken for a ride”. It can be difficult to tell if you’re getting a fair deal on a home. Below, you will find out how to evaluate a home’s price before making an investment decision.
Research Similar, Recently Sold Properties
For the purposes of this article, a similar property is one that’s similar in condition, size, area and features. A 2000-square-foot, fully optioned, one-story home should sell for about the same as another 2000-square-foot home in the same area. You can gather information by comparing the price of the home you want with those of differing properties–is it substantially more or less? Your realtor is a great source of current information on these similar properties.
Learn About Similar Properties Still on the Market
Here, you and your realtor can visit other Homes For Sale in Lawrence and you’ll get an idea of how their size, features and condition compare with those of the home you’re considering. Afterward, you can compare prices to come up with a reasonable number; smart sellers know that they have to list at a competitive price.
Look at Similar Properties that Failed to Sell
If your chosen home is similarly-priced to one that was removed from the market, the home you want might be overpriced. If the market is flooded with similar properties, prices should be lower overall, especially if many of those properties are vacant. Your realtor can help you check the unsold inventory index, which tells you about housing supply and demand.
Consider the Area’s Expected Appreciation
Your chosen neighborhood’s potential can affect the asking price of your new home. If the area is slated for development, homes are likely to appreciate in value. On the other hand, if stores are closing and businesses are moving away, home prices should be lower–and you should reconsider your purchase entirely.
When you are looking for homes for sale in Lawrence, you should understand their pricing so you and the seller can reach an agreement, and so you can make a good investment decision. Using the tips given above, you can make an informed offer on any home you choose.
