First Time Home Buyers:
Making an Offer on a Property
by Geraldine Santiago
Author, Realtor, www.vancouverhomes.info
Making an offer on a property when you are a first time home buyer can be quite overwhelming as many first time home buyers rely on their REALTOR to help determine the fair market value of the property. Determining what is fair market value is not an exact science as no two properties are exactly the same. All properties are unique; even two homes built on the same block at the same time with the same builder are different because of its location.
Lawyers look at legal precedents which are judicial decisions regarding law which affect future cases of a similar nature to help them with their cases. Similarly, REALTORS look at recent past sales which affects future market decisions when determining fair market value for their clients. By researching past sales in particular combined with active, expired, terminated listings for a given time, REALTORS can provide a market value to the property which is being compared. This is called a comparative market analysis or a CMA for a specific point in time to the present. A CMA that is too old or outdated will not help your buyer at all. Both lawyers and realtors must be experienced in their profession to get the best possible outcome.
A formal and detailed CMA report takes a lot of time to prepare. But buyers should have this information on hand before making an offer to purchase so that they will know how to price the property correctly.
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