Wednesday, December 4, 2013

Home Buyer Tips: What the seller paid is not relevant...

When considering the price to offer on a home there are many factors involved in the decision.  The primary consideration, of course, is affordability.  Another includes availability of acceptable alternatives.

One factor that should not be a be a consideration is what the seller paid for the house.

Still, while the seller's acquisition circumstances are a totally unrelated matter, few buyers I have ever worked with did not want to know what the seller paid for a house.

Still, what a seller paid for their house is not relevant today.

If the house was purchased at a tax sale or as a foreclosure the price paid may be significantly less.  If the seller purchased the home around 2005 the market price paid may be significantly more than today's market price.

What matters today is the current market.  Home prices have risen some and continue to climb slowly in Brevard County,. Florida.

The selling price today is based on competition, location, condition, seller motivation, circumstances of sale (short sale, foreclosure, estate sale, standard sale, etc) and other factors - not on what the seller paid.