The first step in determining your purchase price should be to look at the recent sales of similar homes in the surrounding neighborhood. These are referred to as “comparable sales.” Comparable sales are recent sales of homes that closely compare to the one you are interested in purchasing. (similar square footage, number of bedrooms and bathrooms, garage size, lot size, etc..). If the home you are interested in is a tract of home, you will most likely find some exact model matches to compare against one another.
There are generally 2 main sources of information on comparable sales (all of which are easily accessible to a real estate agent) but can be more difficult for the general public to access – and in some cases nearly impossible. Two of the most obvious information sources are the Public Record and the Multiple Listing Service.