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Factors
Affecting Your Offer Price
How
Property Condition Affects Your Offer
Since you have toured the
property you are interested in, you should know how it compares to the
general neighborhood. All you have to do is put the home in one of three
categories - average, above average, or below average.
When evaluating a home’s
condition, there are a number of things you should consider. Structural
condition is most important - items such as walls, ceilings, floors,
doors and windows. Then paint, carpets, and floor coverings. Pay special
attention to bathrooms and bedrooms and whether the plumbing and
electricity work efficiently. Look at the fixtures, such as light
switches, doorknobs, and drawer handles. The front and back yards should
be in reasonably good shape.
The missing ingredient
will be information on the condition of the homes from your comparable
sales list. Provided you chose the right agent to represent you, they
will have actually visited most of those homes and be able to provide
key insights.
How
Home Improvements Affect Your Offer Price
Even when
comparing exact model matches within a tract of homes, you
should note whether the previous owners have made any
substantial improvements. Cosmetic changes should be
largely ignored, but major improvements should be taken
into account. Most important would be room additions,
especially bedrooms and bathrooms. Other items, like
expensive floor tile or swimming pools should be taken
into account, too, but should be discounted. A pool that
costs $20,000 to install does not normally add $20,000 in
value to the home.
Rely on
your agent to give you guidance in this area.
copyright 2000 by Terry
Light and RealEstate ABC
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