You’ve finally found a home for sale in Massachusetts you really like. Your next step is to make an offer; but before you can, you need to know what price to bid on the home!
If you’re like most buyers, your home is the largest single investment of your life. So you may be a bit nervous and feel uncertain as to exactly how much to offer on that home of your dreams.
Should you offer asking price – or maybe even over asking? How about a large percentage below asking, expecting a counter from the seller? Or perhaps you should offer somewhere in between those extremes?
How can you know what is the right price to offer on a home for sale in MA – not too high but not too low either?
How to determine what to offer
In deciding how much to offer on a home, you need answers to two fundamental questions about the Massachusetts home you’re thinking of buying.
Your answers to these two questions will go a long way towards telling you what (and perhaps when) to bid on the property.
We’ll review in this post how to get answers to the first question. A subsequent post will cover how to go about answering the second question.
First question: is the home seller’s asking price on-target?
There are three ways to analyze whether a home seller’s asking price is reasonable or inflated.
It may be most effective to employ all 3 methods to determine whether the seller’s asking price is realistic or way above market value.
Use an on-line home value estimation website
There are literally 100s of Internet sites offering over-the-net home value estimates. Some are just stealth sites seeking to capture and sell your name and contact information as a “lead” to hungry mortgage brokers and real estate agents.
Other sites legitimately seek to help you identify real estate market values. But I’ve personally seen some of these sites make large errors in their home value estimates.
Zillow.com seems to be one of the most comprehensive home valuation sites. Zillow.com is attractive, fun to use and has lots of assessor and registry of deeds information and community demographic data.
However, Zillow.com warns that the accuracy of its on-line home value estimates is limited. Zillow admits to a 10% range of error in its value estimate. Bear in mind that they may do better on some homes, but do worse on others. That’s not a good situation if you planned on relying solely on the instant value estimate to decide what price to bid in an offer on a home for sale.
Here’s the big flaw with all instant, over-the-internet home valuation services: these home value estimates are not created by someone who’s physically been inside the home being evaluated.
Get the inside story
Knowing local home values yourself is the best way to know what to offer on a home for sale in Massachusetts (MA). You need to develop an “eye for real estate market value.”
Your goal in developing your own “eye for real estate market value” is to gain a good understanding of which homes sell quickly and why. You also want to be able to spot the homes that will likely fail to find a buyer and sit unsold on the market until the price comes down.
Getting inside a lot of homes for sale is the best way to develop an eye for local market value. By seeing the insides of homes for sale, you’ll begin to know values in your target price range.
Physically getting inside a lot of homes can take some time and is quite a bit of work. Some buyers simply do not have the time to tour many homes.
But if touring homes is right for you, the effort may pay off big for you when you find a home you want to buy.
How to get inside homes for sale in Massachusetts (MA) without pressure to buy quickly
Find a good Realtor® who will show you homes for sale without pressuring you quickly buy a home.
A big mistake some buyers make is to try to work with several real estate agents at the same time.
Resist the temptation to “play the field” – don’t forget that loyalty runs both ways!
Commit to one knowledgeable agent you’re comfortable with who’ll commit to you and sincerely promote your best interests as a home buyer. Someone who won’t pressure you to buy one of the first few homes you tour.
Once you have an eye for local home values, you should be able to judge pretty rapidly if a home seems priced right and is worthy of an offer at or near asking or if the home appears overpriced and deserving of a low offer.
Have your agent prepare a comparable market analysis (CMA) for the home
Two heads generally are better than one. Even if you think you know the local market cold, ask your agent to prepare a comparable market analysis (CMA) for the home you are thinking of buying.
In essence you’re asking your agent to show you the going price for homes in the neighborhood or community similar to the one you are considering purchasing.
Your agent will use “comps” (recent sales of local properties roughly similar to the home) to document the likely market value of the home.
If the CMA done by your agent is in sync with your take on the home’s value based on your knowledge of the local market, and the on-line estimate you got is in rough agreement, you’ll have a very reliable idea of what to offer.
In the next post in this 2 part series on how to get a good price on a home for sale in Massachusetts (MA), we’ll review how to get leverage in price negotiations with the home seller.
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You get more with Warren Reynolds than you do with other top real estate agents. You’ll find in Warren rare knowledge and experience dedicated to helping you achieve all the value that home brings. Warren has a law degree and 20+ years of home selling success in Massachusetts. — talk with Warren today! 508-561-6259
"We have now bought and sold five homes. By far, you have been the best realtor we have worked with. Your professionalism and knowledge are so valuable to your clients. You made this process so easy. "-CB
Make better decisions
and feel in control.
Did you know you can materially improve your home selling success by choosing your marketing agent and brokerage brand wisely? It’s true! A marketing agent with a sterling reputation, backed by a strong brokerage brand, will do wonders for the reception your home gets upon entry to market. Call Warren today! 508-561-6259
"As first time homebuyers we were fortunate to work with Warren. He was a great asset and sounding board. He always gave solid advice. Warren played a pivotal role in helping us negotiate with a difficult seller. We truly benefitted from having Warren in our corner and so will you." -JK
Maximize your home selling success.
Not only is Warren highly skilled and dedicated to protecting your best interests, he will be highly responsive to your needs! He CARES about his clients and is always, always there for them. Why not give it a try? Contact Warren now and see how well he takes care of you! – talk with Warren today! 508-561-6259
"I had many, many questions which Warren was always more than willing to answer with a never ending patience. Throughout the process Warren looked out for my best interest. I may have purchased a garden style condo but Warren treated me like I was purchasing a million dollar estate!" -MP
Get the attention you deserve.
Warren is a very creative real estate practitioner and he uses that creativity in ways that provide important advantages to clients. Creatively runs in Warren’s family! His uncle was Harnett T. Kane, an internationally-recognized investigative journalist and New York Times best-selling author of thirty books about the American South. Experience Warren’s refreshing difference today! 508-561-6259
"Your creative approach to all aspects of my move helped make the transition easy and pleasurable. You were recommended to me by a friend who appreciated your integrity, expertise, friendliness and conscientiousness - qualities that I have witnessed in abundance as we've worked together." -KB
Get creative with Warren.
Warren is a highly dedicated professional in all his real estate dealings. That means he will continue to serve you well, even when others would compromise on their commitments. Warren’s ultimate goals in business are better transactions and greater client satisfaction. Talk with Warren today! 508-561-6259
"As first time homebuyers we were fortunate to work with Warren. He was a great asset and sounding board. He always gave solid advice. Warren played a pivotal role in helping us negotiate with a difficult seller. We truly benefitted from having Warren in our corner and so will you." -JK
Maximize your home selling success.
All real estate agents are legally and ethically bound to be fiduciaries acting in their client’s best interests. His name stands for integrity and he takes his fiduciary duties to you very seriously. He’ll steadfastly put your interests first throughout your home purchase or sale – talk with Warren today! 508-561-6259
"Warren was always there for us. Throughout the process, Warren kept on top of all our concerns. Warren worked for us, and looked out for our best interest. He is a very professional and caring person." - BP
Feel safe and well taken care of.
Warren is a highly dedicated professional in all his real estate dealings. That means he will continue to serve you well, even when others would compromise on their commitments. Warren’s ultimate goals in business are better transactions and greater client satisfaction. His devotion to excellence can demonstrably improve your home buying and selling decision-making and, consequently, your experience of home ownership. Warren constantly stays current on the local housing inventory. And he is conversant with the broader market trends that affect home sales statewide link to Market Updates. Warren knows that the market knowledge he works so hard to maintain and his high standards of real estate practice help him achieve for you the lasting, true value of home ownership. Talk with Warren today! 508-561-6259
"Warren was the finest real estate agent we've ever worked with. This was evident to us in comparison to quite a few realtors we attempted to utilize, as they were not very helpful, understanding or willing to work with us based on our preferences." -SM
“If you think it’s expensive to hire a professional,
wait until you hire an amateur.” Red Adair
Did you know you can materially improve your home selling success by choosing your marketing agent and brokerage brand wisely? It’s true! A marketing agent with a sterling reputation, backed by a strong brokerage brand, will do wonders for the reception your home gets upon entry to market. Warren is known in the local brokerage community as a dependable, highly skilled professional who is a straight-shooter. Other agents like working with Warren because they know they can trust him to be a reliable partner in any transaction. And the Berkshire Hathaway HomeServices brand stands for sound decisions and extraordinary strength and stability. The “Forever Brand” brokerage created by Warren Buffet sets the standard for the real estate industry by focusing not on selling more homes, but rather on selling homes for more!Call Warren today! 508-561-6259
"As first time homebuyers we were fortunate to work with Warren. He was a great asset and sounding board. He always gave solid advice. Warren played a pivotal role in helping us negotiate with a difficult seller. We truly benefitted from having Warren in our corner and so will you." -JK
Maximize your home selling success.
Not only is Warren highly skilled and dedicated to protecting your best interests, he will be highly responsive to your needs! He CARES about his clients and is always, always there for them. In person, by phone, email or text, whenever you need him, you’ll get a prompt response from Warren! Warren’s clients rave about the high degree of consideration and attention they get from him. Why not give it a try? Contact Warren now and see how well he takes care of you! – talk with Warren today! 508-561-6259
"I had many, many questions which Warren was always more than willing to answer with a never ending patience. Throughout the process Warren looked out for my best interest. I may have purchased a garden style condo but Warren treated me like I was purchasing a million dollar estate!" -MP
Get the attention you deserve.
Warren is a very creative real estate practitioner and he uses that creativity in ways that provide important advantages to clients. Creatively runs in Warren’s family! His uncle was Harnett T. Kane, an internationally-recognized investigative journalist and New York Times best-selling author of thirty books about the American South. Warren employs his own creativity by producing compelling marketing, both in print and especially online! His www.02038.com, is a highly effective website promoting the wonderful lifestyle afforded by the Town of Franklin, MA. And his Market Updates content on Massachusetts real estate trends gives home buyers and sellers alike the context they need to make more informed decisions about their housing investments. Warren frequently uses his abilities to devise resourceful solutions to the diverse challenges that threaten to complicate most real estate transactions. Warren has made real estate his career and won many sales awards in his 20+ years in brokerage, including the highly prestigious Chairman’s Circle Gold Award and the elite Centurion Award. Experience Warren’s refreshing difference today! 508-561-6259
"Your creative approach to all aspects of my move helped make the transition easy and pleasurable. You were recommended to me by a friend who appreciated your integrity, expertise, friendliness and conscientiousness - qualities that I have witnessed in abundance as we've worked together." -KB
Get creative with Warren.
You get more with Warren Reynolds than you do with other top real estate agents. You’ll find in Warren rare knowledge and experience dedicated to helping you achieve all the value that home brings. Warren has a law degree and 20+ years of home selling success in Massachusetts. His legal knowledge and decades-long experience in putting — and keeping — real estate sales together give him a better handle on the legal, practical and emotional dynamics of the real estate transaction. Warren uses these skills to empower clients to achieve more! He often anticipates and resolves problems BEFORE they can become serious impediments. Enjoy the sense of trust, security and control that comes from having a highly skilled expert at your side — talk with Warren today! 508-561-6259
"We have now bought and sold five homes. By far, you have been the best realtor we have worked with. Your professionalism and knowledge are so valuable to your clients. You made this process so easy. "-CB
Make better decisions and feel in control.
All real estate agents are legally and ethically bound to be fiduciaries acting in their client’s best interests. But many agents give their fiduciary duties short shrift in their quest for the quickest and easiest path to a closing. Not Warren Reynolds! His name stands for integrity and he takes his fiduciary duties to you very seriously. He’ll steadfastly put your interests first throughout your home purchase or sale. This may make Warren work longer and harder for you than most other agents would. But ultimately, Warren’s diligence and attention to detail is his commitment to an experience that transcends the sale. He wants you to have the confidence and peace of mind that comes with having a true fiduciary protecting you. Discover the difference of working with an agent who does not view you as just another opportunity for a commission – talk with Warren today! 508-561-6259
"Warren was always there for us. Throughout the process, Warren kept on top of all our concerns. Warren worked for us, and looked out for our best interest. He is a very professional and caring person." - BP
Feel safe and well taken care of.