June 18, 2024


Mad about real estate

When Should I Offer More than the Asking Price

In shopping for homes to buy, buyers would normally look at the asking price of the seller. This helps them filter the homes they would visit. Doing so would also save them a lot of time from by avoiding homes that are way out of their budget. 

After the buyer’s quick inspection, they would end up drawing an offer if the property is likeable. In the current real estate market, buyers would offer less than the asking price. And sometimes, sellers have no choice but to accept the offer. Everything in the current market status puts them in no position to sell properties at high price. If the play hardball, their properties may stay on the market for a long time. And this could have a negative impact on their home’s value. 

However, there may be an instance that a buyer would be swayed to offer more than the asking price. It may sound crazy but if they have more money to spend, they can do it. And do believe that there are people who’s doing that. What makes them do this? Read the following sections. 

Property offered is close to perfection 

Homebuyers have different ideas on what a dream house should be. When they shop, they look for features of their dream homes before considering the property on the list as their prospect. However, there are some houses sold with features close to perfection. They even possess more qualities than the dream houses buyers have in mind. And if the asking price is competitive, it is expected that it will drive a lot of buyers. When this happen, everybody’s offer would normally levered at the asking price. But some buyers may go beyond the asking price to make their offer unique. And it can even go higher especially if the property is located in a perfectly master-planned community. 

Demand Exceeds Supply 

This condition is otherwise known as shortage. When the demand exceeds supply, people would end up fighting over certain commodities just to satisfy their needs. 

In real estate, this can happen when the market is booming. It is evident in situations where there is a high turnover in houses sold. It is also expected that buyers would be in the middle of a bidding war. Every homebuyer would naturally give offers topping their competitors. Sometimes, they could end up offering more than the asking price. 

The willingness of the buyer 

If buyers desperately want to have the property, they could be offering more. In certain cases, offering more than the asking price can happen if the buyers would just want a smooth sailing and quick home selling process. If they have the money all the money in the world, they could pay in cash and put in a little extra.

Whether the offer made is above or less than the asking price, it is still important for buyers to think well on how to make the offer. There’s no assurance that the seller would consider offers, even if they have gotten more than what they have bargained for. What is important is that you make a reasonable offer. To do this, it should be based on the ulterior motive of the seller. Thus, it would require some researching on your part.