Nobody wants to pay too much for a home. After all, with the economy still uncertain the last thing a family needs is to be burdened with a home they cannot sell.
But in their zest not to get burned, some buyers are left out cold in the home buying process. Generally speaking, similar homes in similar areas sell for similar prices. It's just that easy. The three bedroom ranch at 123 Maple is worth pretty close to the three bedroom ranch at 126 Maple.
So how does a buyer know what to offer? In most cases your agent will provide comparable sales or "comps" for the home in question. Going back up to one year, what have similar homes sold for?
In a steady (that's right, the Cenla market is NOT declining) environment the odds of a similar home selling for much less than the comps suggest is rare. After all, the seller's agent has access to the same comps!
What if I pay too much? Again, comps to the rescue! If you are buying with a mortgage an independent home appraisal will be ordered by the bank. What does the appraiser look at? You guessed it, comps! Banks will shoot down an overpriced purchase faster than a teenage boy will down a cheeseburger.
Ready to buy or sell a home in Central Louisiana? Let Doug Rogers with Bayou Properties Realty show you the comps! Call (318) 613-1994 today for your private consultation.
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