When Should You Offer More Than a Home’s Asking Price?

Sometimes when you buy a home in Lakewood, it makes sense to offer the seller more than they’re asking – but not always. The bottom line is that you should rely on your Lakewood REALTOR® to let you know what the market is like and whether offering over asking price is a good idea. However, here are three times it’s worth offering more than what the seller is asking.

When Should You Offer More Than a Home’s Asking Price?

There are three distinct times it makes sense to offer more than what a seller is asking. They include:

• When homes in the neighborhood are selling in 10 days or less and it’s a strong seller’s market
• The house is very underpriced
• You’re competing with cash buyers in a bidding war

Here’s a closer look at each.

When to Offer Over Asking Price: You’re in a Seller’s Market

When houses in the neighborhood are selling in a week, you know that there are more buyers than there are houses – and that means you’re in for some stiff competition when you find the house you love. Sellers don’t even really need a reason to reject your offer and go with another one – so it may make sense to offer more than what they’re asking if that’s what the real estate market is like. Your agent can give you more specific guidance, because the market can fluctuate pretty frequently, and what’s happening in Lakewood this week may not be happening in Long Beach (and vice-versa for next week!).

When to Offer Over Asking Price: The House is Very Underpriced

Some sellers underprice a home in an attempt to start a bidding war. They do this because sometimes, it works – and when it does, the seller makes a higher profit. If the house you like is extremely underpriced (your REALTOR can let you know how it stacks up against other homes), you may want to offer more than fair market value for it and cut out the whole bidding war thing – it could save you (and the seller) time.

When to Offer Over Asking Price: You’re Competing With Cash Buyers

Cash buyers have a little bit of an advantage over people who need to wait on mortgage approval – they can buy a home right now and put real money in the seller’s hands. However, cash buyers likely also have limits; that means if you’re using a mortgage and can afford to outbid a cash buyer, it may make sense to offer over asking price. Again, though, you should ask your Lakewood REALTOR for guidance.

Are You Buying or Selling a Home in Lakewood?

If you’re not already living in Lakewood, or if you are but you’re looking for a new home, we’re here to help. Call us right now at 562-882-1581 or start browsing our Lakewood real estate listings to find your dream home today!

You can also browse:

• Long Beach real estate listings
• Anaheim real estate listings
• Bellflower real estate listings
• Signal Hill real estate listings