5 Times When It’s Ok to Offer Over Asking Price
You’ve been thinking about buying a house for some time now, and you’ve finally found the perfect home. Your dreams are about to come true, and you’re thrilled! But… it’s not quite done yet. Before the house is yours, you’ll need to make an offer, and the seller needs to accept it. This is a critical moment, and you have an important decision to make.
Most homebuyers expect to negotiate the price down when they’re buying a house. However, there are some times when offering more than the asking price just makes sense. The thought of doing this may make you wince, but if one of the following situations applies, it could be the best move.
- You Know (For Sure) There Are Other Offers
Bidding wars are common when you’re buying a house in a seller’s market, but they can really happen at any time. Before you make your offer, it’s a good idea to have your real estate agent ask the seller’s agent if there are any other offers on the table. If you find out you’re going up against other buyers, making a higher offer could give you an edge over the competition.
- You’re Competing with Cash Buyers
If you’re buying a house with financing, the seller knows your offer is contingent on your loan approval. From the seller’s point of view, accepting a cash offer is far less risky. To give yourself the best chances of getting the house you want, you may need to sweeten the pot by making an offer that’s high enough to entice the seller to take a risk on you.
- You Can’t Imagine Losing It
Buying a house isn’t all about money. If you’ve truly fallen in love and you’re sure the house is your dream home, it’s definitely not the time to make a lowball offer. You’ll be heartbroken if the deal falls through, whereas offering more might help you seal the deal.
- The House is Clearly Underpriced
In some cases, a seller will purposely underprice their home to create a bidding war. If you come across a great house that’s clearly well below the market price, you can bet you’re not the only one who will notice. Others who are interested in buying a house are likely going to start making offers too.
- The Seller Isn’t Motivated
Buying a house from a seller who is just “testing the waters” or in no hurry to sell can be challenging. Sometimes having your real estate agent call the seller’s agent is enough to get a good idea of the seller’s motivation. You can also look at how long the home has been on the market. If the home is attractive and there’s nothing wrong with it, but it’s been on the market for more than 30 days, chances are you’re dealing with a seller who’s in no rush. In this case, making an offer above asking might be the incentive to get the seller to bite. Just make sure you’re not offering too much.
When you’re buying a house, making the right initial offer could mean the difference between finally purchasing your dream home and losing out. The stakes are high, so it makes sense to consult with an experienced agent. A great real estate agent will help you analyze the situation, so you can make the smartest offer possible.
Buying a home, whether it’s a new or an existing one, is a big decision. There’s no wrong or right answer that applies to all shoppers, so it’s best to give me a call and I can help you make the right decision.
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