Real estate is a unique business, where an agent with one day's experience and no sales gets paid the same as an agent with numerous years experience and hundreds of successful sales. Knowing how much you can comfortably afford will ensure you are looking in the right price range and prevent you from buying a home that will strain you financially and emotionally. Before you make an offer to purchase that special home, you must have a good idea what the market value is to ensure you do not overpay. Your agent can prepare a Comparative Market Analysis showing what similar homes have recently sold for, and the difference between the asking and selling prices. This is the same type of report the seller receives when deciding on an asking price.
Many buyers think that the only way to achieve a fair purchase price is by offering low.
This is the strategy of the buyer who is not in possession of all the facts essential to negotiating the best possible deal. Remember, in the real estate business, an agent with many successfully closed transactions usually costs the same as someone who is inexperienced. That experience could mean a better deal at the negotiating table with a minimum amount of hassles. Buying a home is a major purchase usually made after spending just an hour looking at the home. It is important to completely understand the terms of the Offer to Purchase.