One of the most important uses of property value information is as a basis for an offer on a home, but it is just as important as a guide in negotiation. For example, there is nothing wrong with making an offer below the listing price (even if the listing price is in range of the neighborhood average) but to lock-in on a low price that is considerably below the average may mean disappointment if you have found an ideal home. In addition, it is important to remember that other buyers may have access to the same information that you do--meaning that if a home is well priced and within the neighborhood averages, there is always the possibility that a competing--and higher--offer will result in a contract for the other buyer. Until the seller has accepted an offer in writing, and the buyer notified, the seller is free to consider offers from other potential buyers.
An additional use of property value information is to highlight--or eliminate--certain neighborhoods. If your budget limits you to $150,000, for example, it really makes no sense concentrating on (and perhaps falling in love with) a neighborhood where the average sale prices are in the $185,000 range. It is far better to focus on those areas where the average sale prices are well within your budget limitations, looking for a neighborhood that will give you the best value for your money.
