Before establishing the price range when making an offer to buy a home you should consider analyzing any gathered information from the most recent similar sales in the immediate area. Along with this you will also need to take into consideration the condition of the property, the current sellers and buyers market, improvements to the property and why the sellers is selling in the first place.
A lot of the time you can simply ask the seller why they are selling and they will be completely honest with you. The most current information on any applicable sales is by far the most important. With this being said it can be somewhat of a difficult task to get the most up to date sales information as well. The main problem is that until the complete transaction is completed there will be no actual record of the price it is being sold for.
During the sale itself all the pricing information is taken out and becomes what is known as a "pending sale". This helps protect all parties involved if the sale happens to fall apart before the final transaction takes place. It simply would not be fair to the seller if for instance everyone could find out the lowest price the seller would accept. However a realtor can sometimes find out the sales price through friends in the business with a "you scratch my back, I'll scratch yours" sort of deal. Some real estate agencies even go so far as to put sales information up on bulletin boards in their offices.
Searching for the right home in the perfect place? Chances are you'll want to check here first.
Gary Allalouf- RA
Hawaii Realty International
Hawaii Mortgage Basics