Research is Critical for Homebuyers Making Bids

Deciding on the right amount to bid for a home can be one of the most difficult parts of the buying process. That is because, although home prices have fallen, some properties might still be overpriced. Many home buyers rely on their real estate agents to reasure them that they are not paying too much, but the homebuyer should take an active role in researching the market and recent closed sales. It can be instructive to compare the asking price of a home with those of other properties on the market or properties that have recently sold. I recommend looking at sales from the past 6 to 12 months, yet with the market downturn, the timeframe narrows this window to 2 to 4 months.

A better option for properties that are difficult to compare with other homes on the market might be to hire a state certified Residential Appraiser to estimate the property's value based upon factual data. If the appraisal supports a lower value, it can give you great ammunition to share with the seller and his/her agent.