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Using comparable home sales

Once you have found a home you like to make an offer on, its a good idea to see what homes in the area are selling for before deciding on what to offer. We call this checking the comps, or comparables.

This is a three-step process. First, you’ll want to determine what other homes similar to the one you want are currently "active." These are homes still being offered for sale.

 Second, take a look at homes that are pending or in back-up. These are homes that are currently in  escrow. However, these serve as only an indicator of where the current market is going, not actual value. 

Thirdly, you really want to consider what homes have sold for. This is your best indicator to go by. Comparing homes that have sold, allows you to compare what previous buyers have paid for homes in the area, and will help you determine what a fair price for the home your making an offer on should be.

Remember, not every home is alike, some have more amenities and upgrades than others. You’ll want to consider improvements, the condition of the property, current market activity, and sellers’ motivation. And as always, one of  the most important factors that affects a homes value is location, location, location!

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bre#01262388, nmls #1082667, Broker Shan Roberts