The thought of offering over asking price is enough to make a home buyer wince. But, there are certain situations where you need to go big or go find another home. Here are a few situations where offering over asking may be essential.
Situation 1: It’s a seller’s market.
A seller’s market means there are more people buying homes than selling. As a result, home buyers face challenges in both home shortages and competition from other buyers. A buyer often has to act fast and bid high to get sellers to accept their offer over others that come in. How do you know if it’s a seller’s market? If homes are selling in ten days or less, it is a good indication that it’s a strong seller’s market. Another sure sign is that homes are selling for 10% or more over list price. As your REALTOR®, I can help you make a good offer in a hot seller’s market.
Situation 2: The house is obviously underpriced.
Some sellers list their homes below market value either because they hope to spark a bidding war or need to sell their home fast. By making a bid over asking price, it may help your offer outshine others. As your agent, I can pull comps to help you assess what other homes in the area are selling for, which you can use as a baseline when making your offer.
Situation 3: You’re competing with cash buyers.
Home sellers LOVE cash buyers, which gives them a big advantage over those needing a mortgage. If you know you’re competing against a cash offer, it may be a good idea to go over asking price to help convince a seller that your offer is the one they should accept.
Situation 4: You absolutely want the home & do not want to risk losing in!
Sometimes, a buyer just falls completely in love with a home. If you know your heart will be broken if you don’t get this house, than making an offer over list price can help you get the property of your dreams.