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  Factors Affecting Your Offering 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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