What Is a Fair Price For a House? (Video)

What Is a Fair Price For a House? (Video Transcription)

Hi, my name is George Belleville, a realtor in Maryland, and I’m creating this video to answer the question, what’s a fair price to pay for a property? It’s a big question, and there are various opinions about it. The owner, their agent, the buyer, the buyer’s agent, the appraiser, and the underwriter all have their views on the fair price.

Determining Fair Price:

From the buyer’s perspective, when you start looking for a house, you set price parameters and do some searching. You become familiar with the houses within your price range and their basic criteria.
Before submitting an offer, a comparative market analysis is done. This analysis considers properties in the area, similar in size and age, to determine a fair market price. Market conditions, whether it’s a buyer’s or seller’s market, also influence the offer price.
In competitive markets, you may make multiple offers before securing a house. It’s challenging when other buyers outbid you, even when you think your offer is fair. I encourage my buyers to visualize the scenario a year from now, where someone else owns the house they wanted and the price they paid for it. This helps set a comfortable price range for offers.

Offering a Fair Price:

The goal is to offer a price high enough to win but not too high that it’s regrettable later. It’s a balance between winning the bid and staying within your budget.
After making an offer and going under contract, the property must be appraised. The appraiser’s opinion of the price is a crucial step in the process.

Conclusion:

Determining what you can afford and what you’re willing to offer involves some math, science, emotion, psychology, and agent experience. Understanding this process beforehand can help when it comes time to make an offer.
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