Many homebuyers focus on a max purchase price when searching for a new home. This number is usually based on how much a lender has told them they are approved for and/or a total monthly payment that they feel comfortable they can afford. But there are some other considerations that can help in making a decision on which home is right and is the right price!

• 1.Price per square foot. When comparing home prices, calculate how much you are paying per square foot. Then you can compare this number with the other recently sold properties, as well as current active competition. For example, if you are looking at a house that is listed for $200,000 and offers 1500 square feet, you would be paying $133 per square foot. Keep in mind that larger square footage resale homes do not always maintain a similar price per square foot comparison.
• 2.Compare the house to numerous sold comparables. Appraisers will only use more recent sold comparables for an appraisal report, usually sold within the previous 3 months. But as a buyer, looking at a 1 or 2 year history for a particular building or community can be helpful to gain knowledge on value.
• 3.Pay attention to days on market. Buyers want to make sure they are making a smart purchase and have negotiated the best price possible for a property. In many cases, it is more likely that you will be able to negotiate on purchase price once a house has been on the market for 90 days or more.
• 4.Location, location, location. The house is important, but keep in mind the land value. “Buy land, their not making it anymore,” Is a quote by Mark Twain, and says it all. Keep in mind land value when making your decision. This can range from having a water view to being located on a cul-de-sac to being near great schools.

   

  Lauren Bunting is a member of the Coastal Association of Realtors and an Associate Broker with Bunting Realty, Inc. in Berlin, MD.
  

Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.