July 13, 2024


Mad about real estate

Should I Offer More than List Price

The most difficult yet unavoidable aspect of home buying exercise is to arrive at the price at which you want to bid compared to the list price. There is no straightforward answer to the question regarding how much less or more you should offer for purchase against the listing price indicated by the seller. You need to really do good amount of research and be aware of the recent happenings in the housing industry prior to arrive at your offer. Your real estate agent is unlikely to quote your offer, but you would be well rewarded to draw from his wisdom and wealth of experience that he possesses.

Getting to information about the seller: It would be great to know the reason as to why the seller wants to sell. Your listing agent can help you gather this vital information. Greater is the urgency of the seller, more advantageous it could turn out for you. The very fact that the seller is in a hurry to close the deal should make your offer price lower than you would have done had you not known the extent of his hurriedness.  

Understand the market – The prices in the housing industry largely move in tandem with the economic growth and welfare. In case you feel times of economic prosperity are ahead, it would be better to quote a percent or two higher to help you ride this wave of growth. On the other hand, if you feel that the economy is likely to slow down in the coming days, you must quote a price lower than the list price.  Take the help of professional advisors and Realtors in getting to understand in which direction the prices in the real estate industry are headed in the days to come.

Study the recently concluded deals: Enquire about the recently closed housing deals in and around the area where you are trying to buy. Make sure you get to know the concluding price for only properties that are comparable in all aspects with the property that you intend to buy.

Also look at the final price of the recently closed transactions which have been done to know whether transactions are happening at prices lower or higher than the listing price. This could be a very good indicator to help you decide your price compared to the indicated list price

Be ready with alternatives – In case you bid for a property without having got any alternatives in hand, probability is you would already be emotionally attached to the property and hence end up bidding a price higher than the right price. Ensure you have at least a couple of alternatives in hand which would help you to be more conservative and realistic in your bidding strategy.

It is worth the wait and study all the factors listed above before deciding the price at which you would want to quote. Quoting the right price can help you save that precious amount which can towards home improvement and furnishing.