Profile picture for aliaboo

How do i use the market value on a home in my offer to buy the home?

I am looking to buy a home and I think I found one that I would like to make an offer on. I used a home market Value tool and I would like to know how to use this number with my offer.
  • August 18 2012 - Grand Rapids Township
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Answers (2)

My suggestion is to find a Buyers Agent to represent you and give you all of the financials you need, a CMA (Comparative Market Analysis).
  • August 18 2012
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Profile picture for nwhome.us
An AVM (Automated Valuation Model) is one of of about a dozen checkpoints that make up an approach to a seller, and it doesn't carry much weight.
The term Market Value specifically describes a value that is agreed upon by both the buyer and the seller, so the computer has little to do with it.
How much does the buyer want the house? (You are here in the process)
How much does the seller want to sell the house?
Is the current market a buyer's or seller's market?
When did the seller buy the home, for how much and have they added any value to the property?
What have neighborhood values done over the same period of time?
Is this a cash offer or does the buyer need to finance the purchase?
Does the home have any deferred maintenance?  What will it cost to repair if it does?
What have houses sold for that can be adjusted to show a comparable price?
How far away are the comparables?
What kinds of adjustments were made to make them a comparable?
How long ago did they sell?

And way down at the bottom is the AVM.  The AVM has never seen the home nor is it able to answer any of the questions posed above.  there's no silver bullet on the internet for establishing what to offer on a home.
  • August 18 2012
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