When To Make An Offer Above List Price
For many home buyers paying more than the list price goes against what’s normal. However, buyers could make an offer above the asking price due to competition.
In a hot market, there are few homes with lots of buyers and if you want to get the house, you have to be prepared to up the offer:
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The house has everything you want
We all have visions of our dream house. Some of us want a pool, others want a 3-car garage while there are those that want a spacious lawn. We all know what we want in a house and most of the time these wants are motivated by our lifestyle. However, it’s not always that we stumble upon the house of our dreams. What if you were to find your dream house equipped and decked out in your favorite color and bearing the appliances of your choice? Wouldn’t you like to own it right away?
Most home buyers want a house that is ready to move in. A house that has the right specifications to your needs and has everything you want sounds too good to be true, but it can happen. In cases like this, it could be worth it to make an offer above asking price.
Think about it, opportunities like this don’t come too often and if you feel that you have finally found the house of your dreams, then it may be worth it to take the plunge.
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The Downfall
It is too easy to become excited about finally living in the house of your dreams. Sometimes you are clouded by your delight you become blind to the fact that it can cost you more money or money that you don’t have. In this case, a more expensive house might not be worth it.
According to statistics, the average American can move up to 11 times during his lifetime. This means at least 11 different homes, meaning the dream house of your vision can change according to your location, preference and lifestyle. Sometimes paying more than the asking price is not worth it if you move around a lot or have no plans to settle in a specific location especially where you may need to pay more in mortgage fees.
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Determining The Right Offer
Every sale is different so there is no way to tell which offer is fair or how much “extra” a house is worth. All buyers want something in a house and determining the right offer differs from buyer to buyer and seller to seller.
The best way to determine the right offer is to do research. Do your homework on the local market to understand the real estate in the area. With this information you have the knowledge of how much homes are selling in the area. Each market is different and usually you can get a good idea of what the norm (% above asking price) is for your specific market if you are planning to offer above asking price.
As a buyer the best tool you have is knowledge. Don’t be afraid to do some digging and take your time to analyze the local real estate scene. Knowing your lifestyle and the type of house you like can help you make the right decision. Looking for more real estate tips? Learn more here.