From Many Parts, the Right Sum

You love the fireplace, the hardwood floors, even the slightly dated kitchen. But just how much are you willing to pay for them?

Deciding on the right amount to bid for a home can be one of the most difficult parts of the buying process. That's because, although prices have fallen, some properties might still be overpriced.

Many home buyers rely on their agents to reassure them that they aren't paying too much, but they can take an active role in vetting the price by researching the market and looking at other recent sales.

It can be instructive to compare the asking price of a home with those of other properties on the market or properties that recently sold, agents said. Although most agents recommend looking at sales from the past six to 12 months, the market downturn has convinced others that narrowing the window to two to four months is the most helpful.

"It never hurts to get into the car and drive by the [recent sales] in the neighborhood," said Laura Fall, principal broker for Fall Properties in Arlington. A close-up look might clarify why particular homes sold for more or less than others, she said.

If there have not been many recent sales in a neighborhood, or the house has unusual features that make it difficult to compare, buyers can factor in the value placed on the property in its latest property tax assessment. But beware: Although assessments provide another data point, they might also include errors and lag behind current market values, agents said. Because homeowners rarely complain when assessments undervalue their homes and aren't always successful in appealing when they are too high, the value that the county places on a property can be unreliable, they said.

Some buyers want to know how much the seller paid for the property. That might hint at whether the seller has enough equity in the property to bargain on price, but it doesn't equate to the current value, agents said. A home's value can increase significantly over time, making the previous sale information outdated.

"I think it's silly when buyers ask, 'What did they pay for it?' " said Kimberly Cestari, an agent with Long & Foster's W.C. & A.N. Miller subsidiary.

A better option for properties that are difficult to compare with other homes on the market might be to hire an appraiser to estimate the property's value, Fall said. "If the appraisal supports a lower value, it can give you great ammunition to go to the seller with," she said. An appraisal can cost $300 to $400, and the buyers will probably have to repeat the process if they decide to move forward with the sale because the mortgage lender will require its own appraisal.

Some buyers explore property values on such Web sites as Zillow and Trulia. Trulia maps average listing prices by neighborhood, and Zillow estimates the value of individual properties.

"We think it is a good starting point, but there is only so much a computer can do," Zillow spokeswoman Amanda Hoffman said. The buyer will need additional advice in judging the "charm and curb appeal" of the property, which can affect its market value, she said. "The best advice is to do your research and arm yourself with the best information possible."

Web sites can provide a general idea of how much a property is worth, but they shouldn't be relied on for specific prices, agents said. "I wouldn't base a decision on just what I get from those Web sites. I am skeptical of any computer program that automatically spits out a number," said Thomas K. Meyer, president of Condo 1, a Falls Church real estate brokerage. "I think the information you can get from some of these Web sites is far too general. . . . I want much more detailed information."