By Peggy Meehan
Nov 9, 2012
Q: When a buyer is looking to purchase a home, how can they tell if the price is set too high?
A: If a buyer hires a buyer agent, the agent will work with them to educate them about pricing and try to get the best price. A buyer agent will have access to the tools and information necessary to intelligently negotiate for the buyer and get the best value for a property that meets their needs.
The price of a house is determined by comparable sales in comparable neighborhoods. Some of the determining factors are square footage, number of bedrooms and baths, location, condition, age of the home, amenities such as a pool or tennis court and views.
Supply and demand is also a factor. If the demand is high for a certain type of property, the value will increase if the supply is low.
Some Internet sites can give you an idea of the range of value based upon sales in a particular neighborhood, but they do not see the whole picture. Only an active Realtor who knows the inventory can provide you with an accurate estimate of the value of the home based upon all the factors that determine the price.
A Realtor is invaluable in determining the value of a property for both a buyer and a seller.
— Peggy Meehan, Coldwell Banker Residential Brokerage, 203-322-2300