Real Estate Corner…

      Q.    We Are Considering Purchasing A Home And Are Uneasy About The Negotiation Process.  Can You Help?

       A.     The goal of a positive real estate negotiation is to result in a win-win agreement.  This is an agreement where both the seller and buyer feel they have received an equitable deal. 

      Here are a few simple tips to help ensure that you negotiate fairly. 

• First, make sure that you offer a fair price.  Nothing turns a seller off faster than a “low-ball” offer.  Likewise, don’t get into negotiations on a grossly overpriced home.  This can leave you feeling taken advantage of and exhausted.  Both the asking price and your offer should be based on current and factual comparable sales in the area. 

 

• Second, always respect the priorities of your counterpart.  Try to identify the other side’s motivations.  Then, examine your own.  If some items prove to be a sticking point in negotiations, offer to meet half way.  This may require you to pay half of some expenses or modify your closing date, but in the end you will feel as if you have fairly compromised.  If you have addendums to your main agreement, it may be helpful to solidify the purchase agreement and then deal with the addendums later.

• Finally, using a third party on your behalf will keep you focused and emotionally disconnected—resulting in a much better outcome.  Look for a CNE ~ Certified Negotiation Expert. I’ve made the art of successful negotiation the cornerstone of my business.  I work hard to understand the needs of both the seller and the buyer in the transaction, and can put these years of experience to work for you. 

If you are thinking of selling or buying soon,

be sure to interview your Real Estate Professional...

how do they overcome objections,

how do they negotiate.

If I can assist you further, please call me at 405-820-1740.

rhonda@rhondasrealestate.com.

The Complete Home Buyers Handbook

Insider's Guide to Saving Money &

Eliminating Risks When Buying Your First Home!

Chapter 3 – Watching The Market

 

Now that you know more about finding a real estate agent, you should begin watching the housing market carefully in the weeks or months before buying your first home in order to get a feel for whether it is in your favor.

Watching The Housing Market

For the past year, the housing market has been favoring buyers. Soaring market values were short-lived as many people decided they just could not afford to live in certain areas because of the cost of housing.

This has caused many sellers to lower their prices. While this sounds like good news for you, the housing market can be very fickle.

Depending on where you want to live, you may end up having to pay a small fortune for the home of your dreams.

This is why watching the market, surveying neighborhoods, and finding a good agent will help you in your search.

While you should not become a slave to the housing market, you should keep the following in mind before buying your first home:

• The past market value of the home you are interested in buying.
• How much house your budget can get you in different neighborhoods and towns.
• Neighborhood value.
• How much the home should increase over time, and
• Price reductions that may be available.

Just because you buy a home for a great deal does not mean you will make a huge profit when it is time to sell it. The housing market will continue to change and since this is your first home, you may want to choose something you can pay off quickly and make a larger profit on in the future.

Also, remember that any improvements you make on the home will increase its overall value. Just don’t spend too much money on improvements. Creating a home improvement budget and sticking with it will help you make those monthly mortgage payments and other payments that will be due.

One of the biggest mistakes that first time homeowners can make is buying a home for a lot less than they budgeted and then making improvements that will end up costing more money in the end. If you can find a great deal on a home, use that extra money as a cushion in case you lose your job or are too ill to work.

Owning a home is a big responsibility. Knowing how the market is moving and spending your money wisely will help when you are creating a budget, applying for a mortgage, and deciding how much to put down on a home.

Making The Most Of The Housing Market

While you should be watching the housing market, there are other areas of interest you should be watching also, such as:

• National interest rates for mortgages.
• Building rates in your area.
• Number of foreclosures in your area, and
• Stock market and gasoline prices.

National Interest Rates For Mortgages

Even though the housing market may be going your way does not mean that the interest rates you could be paying are. In the times when the housing market has taken a slump, interest rates tend to rise in order to retain the natural balance within the economy.

The interest rate you receive will depend on many factors, including:

• Other loans
• Current credit score
• Credit history
• Number of credit cards
• Yearly income
• Owed debts
• Current interest rates
• Type of lender
• Time of year, and
• Adjustable and fixed rate mortgage

If you see housing prices dropping, you may opt to buy a larger home than you would have if the prices had been higher a year ago. While you will be saving money on that end, you may be paying more each month because of the interest rate you received.

Building Rates In Your Area

If you notice the housing market has also caused the building of new homes in your area to decrease, then you may have to enter into a bidding war in order to buy your first home. When new home construction goes down, this can mean one of several things:

• The area is no longer popular.
• The interest in buying a new home has diminished.
• People can no longer afford to purchase new homes.
• People are opting for older homes that are less expensive to heat and keep cool during the year.

While that housing slump may bring a reduction of housing prices, you should consider making a bid soon after finding the home of your dreams because bidding wars will only end up costing your more money.

Number Of Foreclosures In Your Area

When looking for a home, you should consider looking at homes that are under foreclosure. This can be for many reasons, but usually banks that hold the titles want to unload these homes quickly so that they do not lose more money than necessary. Many times auctions will be held or the home will be advertised as a foreclosure in the newspaper or online.

You should check out these homes because you may find exactly what you are looking for in a home.

Stock Market And Gasoline Prices

Even if you do not play the stock market game or own a car, you should still pay attention to these areas because they are usually what will dictate housing prices and the cost to heat and cool the home.

When the stock market is doing well many people will spend their money more freely, which will give way to higher housing prices. But when gasoline prices go up so will the price to heat and cool a home, which may make homebuyers reconsider buying until the prices fall again.

This could be a good time to buy a home if you are willing to pay a little more each month in utility costs.

The impact society can have on the housing market can be huge, and it can also have lasting affects. Buyer’s market’s are created when there are more homes available than buyers, while seller’s market occurs when there are more people who want to purchase homes than there are for sale. These housing markets go back and forth due to issues mentioned above.

In The End

Buy a home when you are ready. Many times, people will buy a home because it is cheaper in the long run than paying rent each month.

The downside to home ownership is that you have to make your mortgage payments on time each month. Very few lenders will give you more time to come up with the money.

If you miss even one payment, your home could be foreclosed upon. You will have no place to live and your credit score will suffer severely.

If you can afford to make the move into your new home now, you should not wait too long before making an offer. The housing market can change quickly and with competition out there, you may end up losing more money if you don’t make an offer after seeing a home that you like.

Rent To Own

Another option you may have is to buy the property you are currently renting or rent a property that also offers you the option to buy after a certain amount of time. This will give you a chance to see if you like living in the home and will give you time to get your finances in order.

Rent to own properties are usually older than other homes and have been rental properties for some time. This means that they may not be in great shape. If you are looking for a property that you don’t mind repairing, then this option may be for you.

When looking at a rent to own property, you should ask the following questions:

• How old is the home?
• How many times has it been rented out?
• What is the mortgage payment on the home?
• What is the rent per month for the home?
• How long will I have to make my decision?
• What happens if I change my mind?
• What happens if the home owner changes their mind?

You should still sign the proper contracts stating that you are interested in buying the home after the given time period. This will protect your rights and the rights of the current homeowner.

New Homes

When you think of your first home, you may be thinking of a brand new home. Since the housing market is favoring buyers at the moment, you may get a great deal from a builder that is developing a new housing community, or you may find a plot of land that is in an existing community. This can be a great alternative to buying an older home for many reasons:

• You will have a part in designing the home.
• You will have new appliances and lighting fixtures.
• You will have new carpeting and flooring.
• You will be able to choose all of the fixtures, carpeting, and flooring.
• You will be able to add a porch or a patio, and
• You will be able to place the home where you want it on your property.

A new home can be very exciting, but it can also be a lot of extra work. The first step in buying a new home is to find property. You should visit builders and real estate agents who will file all of the necessary paperwork, permits, and other items needed to build on the property. This can take a few weeks, so be sure to plan accordingly.

The next step is to design the home. This is the fun part where you will get to personalize your home to suit your needs.

Once you have been approved for a mortgage, the property has passed all of the land inspections, and the home has been designed, construction will begin. Depending on the time of year, you will have to wait about 3-6 months before you can move into your new home.

After construction is complete, you should complete a walk through of the home, check all of the fixtures, and have the home inspected before signing the final paperwork. Then the home is yours.

Many people hire a lawyer during the construction phase so that all of the paperwork has been filed and there are no problems during the walk through.

Buying a new home is just one more option you should consider when looking for your first home. Home construction can vary, as there are a few ways to build a home, including pre-fab homes that will be built elsewhere and delivered to your property where they will be assembled. Look into all of your options before deciding on a home that is right for you and your budget.

Using The Housing Market To Your Advantage

By paying attention to current housing trends and keeping a watchful eye on the homes in your area, you will be able to make an offer on a home that will be accepted.

While the market is continually changing, it is a useful tool for those who are on a budget, who want to find a home that is large enough to suit their needs, and will be worth more when it is time to sell it.

When watching the housing market, consider the following:

• The number of homes that are in your area.
• The number of days the homes have been on the market.
• The price of a new home compared to those that are being sold by homeowners.
• The price of renting vs. buying.
• The number of homes that are in your price range.
• The highest price you can pay when buying a home.
• Interest rates in comparison to housing prices, and
• The time of year.

Springtime is a good time to buy a home for several reasons:

• More people want to sell.
• It is easier to make appointments to view homes.
• Prices are usually lower.
• People are more willing to reduce their asking price.
• Income tax returns can help with a buyer’s budget.

There will be plenty of people who could not sell their homes in the fall or winter months and who are trying to sell before the summertime. Homeowners that need to sell their homes before a certain time are more willing to reduce the price of their homes.

While you should consider looking at a home during any time of the year, you will find that many homes will be lower in the spring to attract buyers.

This is also the time when interest rates are re-evaluated and many lenders are willing to give loans to those whose credit is not the best. Take advantage of when interest rates are at their lowest even if it means accepting an adjustable rate mortgage. You will have the option of locking into a fixed rate at a later time.

While the housing market can change, the idea of selling one’s home will not. Homeowners may choose to wait out the current housing market, but if they are eager to buy another home or move to a new place, their wait will be short-lived.

Negotiate with homeowners until a fair price can be reached. This is the same practice during a sellers market as in a buyers market. You may have to play the bidding game for a week or two, but in the end, it is the person who needs to make the transaction happen the most that will end up compromising the most.

Next:  Chapter 4:  Home Inspections 101
Be sure to follow so you don't miss a chapter!

Is Your Real Estate Agent Getting You Maximum Exposure?

What can your real estate agent offer you?  That's the question you ought to be asking yourself these days.  With the huge shift in traditional marketing methods to the internet, and now social media/networking platforms online, it pays to do your homework before signing any contracts.

Although nearly 90% of buyers and sellers are turning to the internet for their real estate related needs, a depressingly lower amount of Realtors are actually taking the time to learn about online marketing strategies.  This can be detrimental to your exposure and/or finding the best deals possible.

Unfortunately, many agents and brokers are still stuck in the stone age of marketing, and refuse to accept change within their own industry.  Although traditional methods still hold some weight when advertising a home, you could be missing an enormous piece of the pie if you don't work with one that is also innovative and tech savvy.

Here is a List of Questions You Should Be Asking During an Interview:

1.     What types of social marketing do you employ? Let’s face it. If they aren't investing the time into building a Facebook, Twitter, LinkedIn, Google+ following (or the host of other media available today), then there are literally hundreds of buyers and other professional contacts that are slipping right into the hands of their local competitors.

We are in the day and age of networking, and word travels at the speed of light.  So your agent should be promoting your home on all of the following platforms by building specific pages and listings for your property where buyers can instantly find you.  This will give you maximum exposure.

2.     How do you capture leads? On the other hand, not only is it important for your agent to network and promote your property online, but they also need to collect the necessary contact information from website visitors in order to do business with each prospect.

Your Realtor should have their own website with an active blog, in order to keep in constant contact with their audience.  By marketing on Craigslist, Google, Youtube, article directories, and any other medium available, your agent should be able to drive traffic back to their own sites.

Next, each person should be directed to some form of lead capture where they can enter their contact information for further updates on your listing.  This could also include using mobile marketing, which will allow people to offer their cell phone number in exchange for property details.  QR and/or text codes can be included on websites or even signage and postcards.

3.     How do you follow up with your leads? Finally, can you be certain that your agent will go to work for you?  Regardless of how many leads they may generate, if they do not have an effective follow up plan in place to build relationships and get buyers taking action, then your efforts could be wasted.

It is important that your agent spends the time to build effective email campaigns, submit updated blog posts and social media updates, and make direct phone calls to incubate each lead and ensure that action is taken while leads are still hot.

Also, can they provide strong evidence of quantifiable results with their real estate marketing campaigns, and are you confident in their ability to sell?  Do you see the potential of getting a head above the rest and truly taking advantage of all the resources that are available at your fingertips?

By carefully reviewing all of the above criteria before choosing an agent, you will be able to ensure that you are receiving the best attention and service possible.  If you are interested in setting up a time to review an in depth presentation on how we will put our comprehensive marketing strategies to work for you, please contact me today.  I truly believe you will not be disappointed!

Here are a few places you can find me:

	http://www.RhondasRealEstate.com    http://imrhonda.blogspot.com/   http://www.twitter.com/imrhonda19    http://on.fb.me/eUvBs0    http://www.linkedin.com/in/imrhonda19    http://activerain.com/imrhonda19          http://www.trulia.com/profile/rhondamiller   http://www.google.com/profiles/imrhonda19   Still curious? Google me: imrhonda19 or Rhonda Miller

How To Sell Your Home Fast!

Selling your home fast doesn’t have to be an impossible endeavor.  In fact, even in today’s market you can still command a very reasonable price on your home within 90 days or less.  And if you follow some proven steps outlined below, your turn around time could be much faster than expected.

There may be various reasons that you want to get your home off the market as quickly as possible, so the principles offered here can work in nearly every situation.  So let’s look at some basic strategies that you can implement today to gain the most favorable results:

Staging Your Home Properly

This is one area where it may make sense to hire professional help.  Regardless, do your homework and take the time to find out exactly what can be done to make your property more marketable.  For example, be sure to strip away any of that stuff on the walls being used as "decorations" that is personal.  Also, place something of interest in each room that draws buyers in.

Additionally, people want to be able to picture themselves living in your space and visualizing where their own possessions will go.  So you need to clear out space and remove clutter, especially from public areas and closet spaces.  In fact, it is said that at least  1/3 of your own items should be placed somewhere else other then the home you are trying to sell.  We're selling floor space, after all.

Finally, maximize the use of lighting and make sure the house is spotless.  Most importantly, this goes for the kitchen and bathroom spaces which tend to endure a lot of wear and tear.  Patch any areas that need touch ups with some spackle, paint and caulk.  

Cut That Price

If you’re in a situation where you are moving and want to be rid of your property ASAP, then consider starting your list price at about 10% below its estimated value.  It’s better to start a little lower up front if you want to attract the attention of buyers and get quick offers. It can even bring multiple offers that could net you that 10% more! Your home will get the traffic you need to sell quickly!

This can also work much more effectively then dropping the price incrementally overtime.  In fact, the latter can even be harmful, because it may create the perception that nobody wants your property.  So make your listing competitive and be ready to entertain some early offers.

Do Your Research

People like things in writing.  Therefore, spend a little extra money to get an appraisal and inspection ahead of time, which you can offer at each showing.  This will build confidence with your buyers, since you will be providing the hard facts up front and you will show there is nothing to hide.

If you want to go the extra mile, you can even include receipts and/or documentation of repairs done on the home, as well as any new appliances that may have been purchased.  Your agent may also want to include information and statistics on the neighborhood as well.

Hire A Real Estate Agent With Proven Results

Did you know that the top 10% of agents produce 90% of the results?  Therefore, why hire a Realtor that can’t follow through on their commitment to sell, especially when time matters most?  You need a team to work on your side that knows your market and can command the best price for your home in a short period.

Also, it is vital that your agent has expertise in marketing your home both with traditional methods and using online strategies for maximum exposure.  Because information travels so quickly on the internet, it is crucial that you have property tours, videos, listing information, etc. are submitted to all the top traffic producing sites.  This will attract a high amount of responses and will help the word to travel quickly. 

Let my marketing ability help you sell quickly. During our private consultation, I'll show you quantifiable results along with a comprehensive marketing process that has helped other homeowners just like you get the results they desired.  I look forward to earning your business!  

 Testimonials: http://on.fb.me/qar1mv

6 Ways to Improve Your Home's Value

When you’re getting ready to sell your property, you want to be able to get the best price possible for your home.  However, depending on how long you've lived at your current residence, it may require you to invest some time and money into improvements.

Many sellers may become wary of taking the necessary time to help spruce up their home’s appearance due to the cost associated with upgrades.  Yet, simple improvements to a property can make a big difference and won’t always cost thousands of dollars to accomplish. 

Here are some great ways to increase value and make the most impact:

1. Improve curb appeal:  You can achieve this in various ways.  You can simply fill in empty spaces and add some drought resistant plants or shrubs to your landscaping.  Or some flowers and potted plants near the front entrance can make a great first impression.  Adding a tree for additional shade and patching up a worn out lawn can work miracles to draw buyers in.

2. Space & Cleanliness:  There is nothing worse to a buyer than a cluttered or unclean home.  Take the time to remove unnecessary items from your closets, clean out the garage or carport, remove clutter or toys from the living areas, and make your floors shine!  Your home needs to be staged in such a way that your buyers can visualize themselves living there.  The way that you decorate your walls and ceilings will also affect how your buyers perceive open space.

3. Aim for an earthy appearance:  Many buyers appreciate materials and paint colors that tend to have more of an earthy appeal.  Each room will be different, so be sure to choose wisely.  Also, consider using ceramic tiles or wood flooring instead of carpets or linoleum.  Tiles in both the bathroom and/or kitchen could also make a huge difference.

4. Change outdated items: This can be as simple as replacing some old light and sink fixtures, doors, handles, or even windows.  These items can greatly impact the price of a home and don’t always require huge amounts of investment.  Additionally, maybe a new coat of paint or trim is all you need to fix up an otherwise “old” appearance.

5. Ask an expert:  Whether you need advice on decorating, how to improve energy efficiency, or would like to find some items that could use a little “TLC”, it could be worth a small one time investment to get another opinion.  This is a way to proactively make changes before you even consider listing your home.  And you may be able to even avoid bigger problems that could arise down the road.

6. Bathrooms & kitchen:  Finally, if you are able to make the extra investment, two areas that have the biggest impact on price are your bathrooms and kitchen.  Whether this requires replacing the floors, sinks, tubs, fixtures or appliances, there are many ways that you can astronomically boost your home’s appeal by making improvements to these two key areas.

Hopefully these tips prove to be helpful when the time comes for you to sell your home.  If you would like to receive an expert opinion from an experienced Realtor on how you can command top dollar for your property, be sure to contact me today.  Simply use the information provided below to schedule a free in home consultation today!

Email: rhonda@rhondasrealestate.com

Text or Call me Direct: 405-820-1740

Foreclosure Property Purchasing Pitfalls

Due to the mortgage crisis our country has faced over the last several years, there are continually more and more foreclosure properties that are being put up for sale everywhere you turn.  Of course, this can be very tempting for homebuyers as people can sometimes get properties for 30% or even less on the dollar.

However, if you are considering a foreclosure property for your next purchase, there are some common pitfalls that you will need to avoid along the way to protect yourself and your future asset. 

Here are some areas to be aware of before making any serious offers:

1.     Avoid Making Emotional Offers: When you are planning on putting a bid down on a property, you need to be extremely confident with the home’s current condition, its true market value, and what will be needed to fully restore the property. 

Too many buyers will think that they found a slamming deal and fear that they will lose the home to another bidder.  So instead of taking the time to truly do their homework and complete the proper inspections and analysis, they can end up locking up a property for more than it’s actually worth.

2.    Estimate Neighborhood Values: Consider what other comparable properties are selling for and talk to a real estate professional who has a working knowledge of the area.  In fact, it’s a wise decision to thoroughly review these questions and any other recommendations your Realtor may make:

• Is this neighborhood a desirable location and how are crime rates?
• What schools would be available for my kids or future buyers?
• Were there any other foreclosures or investor sales that could negatively affect the future value of my home?
• How long do I plan on living there and how could that affect things?
• What type of appreciation should I expect?

3.    Get Preapproved: Before you even start looking at homes, you must get preapproved on a mortgage in order to know exactly what you can afford.  Sadly, many buyers can miss out on some phenomenal deals or spend hours of wasted time because they avoid this step.  Show lenders that you are a serious buyer and have your financing in place!

4.     Get Professional Help: Not only should you seek the expertise and of an experienced Realtor, but you may also need guidance from a real estate attorney or financial consultant as well.  Each professional can ensure that you are making the right choices throughout the process and can protect you from any issues you may come across along the way.

Remember that there is a lot more than meets the eye when you are trying to buy a foreclosure property.  Negotiating with the banks, filling out paperwork properly, and undergoing all the necessary inspections can be a very detailed and tedious procedure. 

I encourage you to find someone you can trust that has years of experience assisting other clients buying foreclosures for their next home or investment property. 

Happy home and investment hunting!

Investing in Real Estate vs. Stocks

When it comes to investing in land/real estate or stocks, there is no one size fits all.  Although both vehicles have proven over the long run to provide excellent returns when handled properly, each person will have their own unique goals, risk tolerance, and capital that they are willing to spend.

Additionally, this is where a financial planning specialist may offer useful insights as well.  You may have heard the advice to not put your eggs all in one basket.  Therefore, it may even be beneficial to consider pursuing both forms of investments to better leverage your profits.

So our goal is to offer an overview of both sides of the coin in order for you to start forming your own opinion.  All in all, it is most important that you proactively take your financial future into your own hands and only pursue the path that you feel will be the best for you and your family.

Benefits of Investing in Land or Real Estate

Many very successful people started out their investing careers in real estate.  Plus regardless of what happens in the economy, it is factual that people will always need a place to live.  Homes very rarely decrease in value when they are well maintained and purchased correctly.

In addition, land can be an extremely lucrative investment since the world’s population continues to increase, and as a result the demand for land used by residential, commercial and retail entities is always on the rise as well.

With real estate you are offered something that is tangible and can be easier to calculate your due diligence.  In other words, after reviewing the property specs with appraisers and inspectors, you have a fairly good idea of what you are getting into.

Downside of Real Estate Investments

First of all, there is typically a lot more time and energy invested in managing your investments.  Whether you are renting your property out to tenants or keeping your lots clean and free of debris and coding violations, this is something you will be much more actively involved in.

Next, real estate always has some sort of cost involved.  Regardless of what you decide to do with your properties, you will still be responsible for taxes, insurance, utilities, repairs/maintenance and possible a host of other expenses.  Plus you can end up overspending and losing your shirt.

Finally, you have to have the proper investment strategy in place.  Although real estate has historically been a strong hedge against inflation, you always need to consider your own local trends so you can properly leverage your investments to realize a strong ROI. 

Benefits of Investing in Stocks

Unlike real estate, this is an investment that can be essentially placed on autopilot.  Aside from keeping an eye on your portfolio for rises and dips, you can leave the management and operation of each entity up to the professional staff.  You own a piece of each company without having to work for it.

Even with the Great Depression and other scares that we have witnessed over the last century, stocks have historically proven to be the best return on investment for those who hold on through the tough times and invest their returns properly.

Additionally, it typically doesn’t take a huge upfront investment to get involved in the market, and this is very beneficial for those who don’t have a lot of cash on hand.  As long as you choose the right companies, earnings will continue to increase.  Selling your stocks is also infinitely easier than listing a property or land for sale as well.

Downside of Stocks

On the other hand, the greatest benefits of stocks can sometimes be the most detrimental weaknesses.  For example, though you do not need to actively invest sweat into each company, you are also leaving your finances in the hands of a management team that dictates how things operate.

Therefore, if business takes a nosedive so do your stocks.  Some will recover while others may crash and burn.  Also, this can be a very emotional game.  Especially for those who are getting closer to retirement, the couple scares that we have witnessed in the last decade caused many people to pull out at huge losses.

Finally, stocks can be a lot more unpredictable, especially if you are jumping on the bandwagon of rising trends or promising starter companies.  Though some may end up being a homerun, you are always listening to the speculations of gurus or your own gut feeling.  Alternatively, real estate can typically be more accurately measured.

So...it's important that you take the time to assess the investment opportunities that are available to you before making any decisions.  It is important to look out for your financial future and well being, and I'm here to support you along the way.

If you need more information about how you can get started investing in real estate or land, and want to discover the options available in the area, take the time to contact me today.  

rhonda@rhondasrealestate.com

Get The Best Price On Your Next Home Purchase!

One of the most important aspects to buying a home is to ensure that you purchase for a fair price.  Since there are certain key steps that you must follow in order to make a sound decision, it pays to have a knowledgeable Realtor on your side who will be able to help obtain the best and most realistic asking price for a property.

Determining Market Comparables

For example, one of the first ways that your agent will discover the price of a home is by researching local market comparables.  In most cases, they will be able to bring up a list of properties sold over the last 6 months within a 1 mile radius.  Properties should also not be bigger than 20% of the subject size.

Additional features to consider would be the neighborhood each home resides in, structural differences, bedrooms and bathrooms, overall condition and other amenities such as a pool, a/c, or garage.  Other factors, such as if a particular home sold for much lower due to foreclosure is something your agent can uncover as well.

Houses That Have Not Sold

Next, many homes could be on the MLS for 6 months or longer without ever selling.  Others that are comparable could have been taken off the market after not getting enough offers or being listed for too high.  This is valuable information, because you may be able to get a particular property for a substantial discount or it may not even be worth pursuing. 

Neighborhood Reputation & Appreciation

When it comes to buying a house, this is one of the most important reasons to work with a Realtor.  Since your agent will have a familiarity with various local market trends and statistics, you will be able to learn what makes a particular neighborhood desirable and also which areas to avoid.

A lot of things can affect a home’s value such as the school district, crime levels, or even other properties located nearby (such as those burnt in a fire or properties that were a bank sale).  In fact, sometimes these factors can even differ from block to block!

Your agent will also help you to assess the appreciation rates for various neighborhoods and future development plans that could affect home prices, so that you can get a decent indication of what to expect down the road.  This can be extremely valuable information dependent on how long you plan to live at the said property and the length of time the home may need to sit on the market.

Appraisals & Inspections

After you place an offer on a property, you will have the opportunity to get an appraisal and home inspection as further due diligence.  Even with an agent, there are sometimes issues that may arise with a property that could affect the home’s value that you were not even aware of.

Some of these problems could include structural issues, plumbing or electrical, termites or insects, mold or even water damage to name a few.  Obviously many of these things could impact the price significantly and would either have to be fixed by the seller or renegotiated to get a fair price.

In conclusion, there are a lot of areas to consider when choosing a home and getting a fair price on a property.  Since this is one of the biggest purchases you will ever make, it is crucial that you protect your interests and ensure that you are getting the best deal possible. 

Be sure you are working with a Realtor!