Many home buyers expect to buy their homes for lower than the asking price. This is sometimes possible via negotiations. However, there are many cases in which a home ends up selling for higher than its asking price. If you want to buy such a home, then you should consider submitting an offer that is higher than the seller's asking price. Below are some situations in which to apply this tip.
The Property Is Underpriced
There are several reasons a property may be underpriced. Maybe the seller used the wrong comps, the seller did not consider other factors (such as the rate of gentrification), or the uniqueness of their property. Or maybe the property is for sale by owner, who is neither skilled nor experienced at setting property prices. In such a case, others might be attracted to the property due to its low price, and the seller may also realize their mistake. Thus, offering a higher price may help you get the house.
You Have Direct Competition
You should also consider exceeding the listing price if you are sure you have direct competition for the property. Maybe the seller or the agent has mentioned competing offers. Maybe the property is desirable, like if it is a residential house that can be converted to a commercial property.
You Are in a Seller's Market
A seller's market is one in which there are more buyers looking for properties than properties for sale. In such a case, the numerous buyers in the market will be competing to buy the available properties. Properties also don't last long in a seller's market. Under such conditions, presenting an attractive offer (for example, by exceeding the property's listing price) is one of the best ways to edge out such competitors.
You Want Seller Concessions
It also makes sense to make a big offer if you want to expect concessions from the seller. Maybe you want the seller to include some appliances with the house, shoulder some of the closing costs, or take care of some repairs. Many sellers are likely to make such concessions if they receive an attractive enough offer.
The Property Is Perfect for You
Lastly, you should also consider exceeding the listing price if you don't want to lose the property at all costs. Maybe the property is close to your coveted school, is in a desirable location that you have been longing to move to, or generally ticks all the boxes of your ideal home. You don't want to leave anything to chance by making an offer that another person can easily beat.
For more help looking at and making offers on homes for sale, contact a real estate professional.
