Write a homebuyer offer and run your own due diligence

  1. Research comparable sales to set your offer price and terms
    1 hour

    What you produce: A short spreadsheet or table of 6–10 properties with their list prices, sale prices, square footage, lot size, bedrooms, bathrooms, age, and days on market. From that data you compute a list-to-sale-price ratio and a realistic offer range for the subject property. This is the hardest number in the whole transaction — a price that is too low wastes your time, and a price that is too high wastes your money.

    1. On Redfin or Zillow, enter the property address and zoom the map to its immediate neighborhood (same subdivision or a 0.5-mile radius if no subdivision exists).

    2. Search for recently sold homes — filter for “Sold” status and a lookback of 90 days. Pull at least 3–5 sold comparables. Record for each: address, sale price, square footage, lot size, bedrooms, bathrooms, year built, and days on market (DOM).

    3. Search for active listings — pull 3–5 similar active homes. You are not pricing off these, but they show the competition you are up against.

    4. For each sold comparable, calculate the list-to-sale ratio: sale price ÷ list price. A ratio over 1.00 means homes are selling above asking in that area. Average the ratios into a single multiplier.

    5. Adjust for differences. If a comparable has 300 more sq ft or an updated kitchen and your subject does not, subtract a rough dollar estimate from its sale price. Use a rule of thumb: $150–$300 per sq ft depending on your market, or note the adjustment in your table if you are unsure.

    6. Multiply the subject property’s list price by the average ratio, then apply your adjustments. The result is your target offer price. Around that number, set a walk-away ceiling — the most you will pay before the numbers stop making sense — and a starting offer (typically 2–5% below the target if the market allows negotiation).

    Keep: Your target offer price, your walk-away ceiling, your list-to-sale ratio, and the comparable sales spreadsheet. These numbers go into the purchase agreement in the next phase.