As a consumer, make sure that your agent provides you with the latest comparable sales in the area for the property that you have selected. Typically, they will go back six months to find values just like an appraiser will do for a bank. If you have chosen to buy a Long Beach condo for instance, then expect to see the comparable sales in the same building not surrounding condo complexes.
If you are buying a home in Long Beach, then the comparable sales will be from similar neighborhoods within a half mile of the property. Plus, with condos and homes, we use a square footage range like this….if you buy a Long Beach home with 1300 square feet, then we will find comparable properties between 1200 to 1400 square feet in the neighborhood.
This helps you in two ways:
1. To understand the real value of the home
2. To understand the market trend of housing prices
You the media is hammering the real estate industry that prices have fallen 50%….that’s insane. Talk to your Realtor about the comparable sales, what they think about the value of the property and what they think you should offer. Remember, your Realtor is going to work in your best interests to push your offer through…and they need to use strong evidence to convince a seller to take your offer. So, we suggest that you review the comparable sales, market trends and make an offer that is a little less but one that you think will get accepted.
My real estate partner Stella Frize and I just showed a property at 488 Ocean Blvd in Long Beach, The Aqua Building, on Tuesday, April 22nd, 2008 listed for $499,000. It was a great ocean view condo and a bank repo but it had two offers on it already. So, if our buyer wanted it, he would have had to come in at a much higher price. There are some great buys in the real estate market so be prepared and consult with your real estate professional, hopefully one on The Red Wagon Team at Main Street Realtors, Inc. (grin).
