So you have found the perfect home for your clients and you already know the seller's asking price? What price are your clients going to offer and what is the best way to determine that figure?
First, look at recent sales of similar properties to determine an offer range.
Comparable sales, meaning the recent sales of similar homes that compare closely to the one you are looking at, are very helpful. Accessing information on comparable sales can be easily accessed by the real estate agent. It is more difficult for the general public to obtain this information. Two of the most obvious sources are public tax records and the Multiple Listing Service.
Take a look at the condition of the home, improvements, current market conditions in the area and the circumstances surrounding the sale of the home. This will help you detemine a "fair" price for the home. Depending upon your negotiating style and the circumstances of the sale, adjust your "fair" price accordingly to determine the initial offer price.
If you are submitting an offer that is lower than asking price, you can send your list of comparable sales and any additional information to the listing agent to help justify the offer price to the seller.