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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.
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