An important component is a Comparative Market Analysis (CMA), which your real estate agent can provide — another benefit of working with a buyer’s agent — and is a mathematical model to find out the value of your future home. It calculates the basic conditions, such as number of bedrooms, bathrooms, square footage and lot size. Then, it compares your potential home to similar houses on the market in your area and most importantly, what has sold. This model will help guide you to making an informed offer. After the approximation, add or remove the components that respectively increase or decrease the value. For example, you could know that the current owners have recently changed all the plumbing in the house. Or, conversely, that their plumbing is 25 years old and will probably start breaking down soon. Get estimates for any necessary immediate repairs, or ask for estimates. Research the market trends. Has the local market gone up or down over the last few years? Is this a Buyers market or a Seller's market? How does this home compare to new construction prices? Those calculations and forecasts may take time and effort, but they will ideally leave you with options to consider and choose from. The real estate agent’s services will be very helpful. It won’t take a professional as much time to evaluate all the pros and cons and come to you with a proposal. Your real estate agent will assist in this process and usually help you through the decision process. The agent may advise on offering price and factors involved. Ultimately, it will be your choice. After you agree on a price, the agent will send the proposal to the seller or seller’s agent. The seller will either accept it, reject
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