An important component is a Comparative Market Analysis (CMA), which your real estate agent can provide — another benefit of working with a buyer’s agent — and is a mathematical model to find out the value of your future home. It calculates the basic conditions, such as number of bedrooms, bathrooms, existence/size of the yard, or swimming pool. Then, it compares your potential home to similar houses on the market in your area. This model will give you an idea of the average local cost, which will be fundamental information to inform your offer. After the approximation, add or remove the components that respectively increase or decrease the value. For example, you could know that the current owners have recently changed all the plumbing in the house. Or, conversely, that their plumbing is 25 years old and will probably start breaking down soon. Get estimates for any necessary immediate repairs, or ask for estimates. Research the market trends. Has the local market gone up or down over the last few years? Do people buy or sell more? Are there houses being built that will soon be for sale? For example, teardowns and new construction would indicate rising local home prices. Those calculations and forecasts may take time and effort, but they will ideally leave you with options to consider and choose from. The real estate agent’s services will be very helpful. It won’t take a professional as much time to evaluate all the pros and cons and come to you with a proposal. Your real estate agent will assist in this process and usually help to decide. The agent may advise on offering price and factors involved.
After you agree on a price, the agent will send the proposal to
49
Powered by FlippingBook