Closing Procedures - Determining Your Offer Price
Once you’ve met the home of your dreams, or at least the one you prefer most that you can afford, think about making an offer on that home. Since most home sellers will price their homes a little high for room of bargain, you can start your offer somewhere below the asking price. But where is a good place to start an offer?
 
Determining your offer price is a Four-step process.
1. Comparable Sales – study recent sales of similar properties to come up with a price range.
2.
Additional Factors – analyze the property’s condition, property’s improvements, current property market condition, and the seller’s motivation. That helps you settle on a price you feel “fair” to pay for the home.
3. Adjustment – depending on your negotiating style, adjust your “fair” price and make an offer to the home seller directly if you have no representation, or through property agency if you work with a property agent.
   
1. Comparable sales
  Comparable sales are recent sales of homes that compare closely to the one you wish to purchase. Specifically, you should compare prices of homes that are similar in square footage, number of bedrooms and bathrooms, car park spaces, type of developments, and additional features e.g. roof, garden and balcony. Since the outlook and year of completion of the home are also the factors for appraisals, you’d better find some exact model matches along the same development to compare against one another.
   
  Transaction Record
  In Hong Kong, the most easily accessible information source on comparable sales is the transaction record. Every transaction is deeded from the homeowner to the homebuyer, and most deeds are registered at the Land Registry. Some local property information providers generate the transaction record by compiling daily data from the Land Registry and combining these data with information e.g. square footage and number of rooms, and then post on the Internet. Note that the transaction record on property.hk, http://hk.realestate.yahoo.com/ and www.cnp.hk is free for the general public.
   
  Property Agent
  One problem with the transaction record is that it generally runs at least 6 to 8 weeks behind from the “closed” transaction to deed registration. The data you see is not current! The most valuable information would be the most current, of course. The most recent sale has more validity in helping you determine a purchase price. Some agents will know the sales price when the transaction is still “pending”. Thus, you can also get a comparable home sales report from your agent.
   
2. Additional Factors
  Property’s Condition