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Do you know anyone who works in real estate in your area. Ask them to prepare a CMA (comparative market analysis) to see where the purchase stands in comparison to resent sales and current listings in your area. Or you can order an appraisal from a local appraisal company, but this will cost you a few hundred dollars. You will have to make some concession since the owner is taking on the risk of financing the transaction.
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For Sale: $345,900
For Sale: $2,650,000
For Sale: $685,000