When Should You Offer Over Asking Price on a Lakewood Home for Sale?
In some cases, it’s smart to offer more than what the seller is asking. In fact, doing so could help you seal the deal – but you should always rely on your Lakewood REALTOR’s® guidance. So when should you offer over asking price on a Lakewood home for sale? This guide explains.
When Should You Offer Over Asking Price on a Lakewood Home for Sale?
Normally, people who want to buy a home offer the lowest reasonable price and hope the seller accepts it – but in some cases, it’s smart to offer over asking price. Here are three times it may be acceptable, or even a good idea, to offer more than the seller is trying to get:
- The home is seriously underpriced
- You’re competing with cash buyers
- Your agent tells you that you’re in a seller’s market
Here’s a closer look at each.
Situation #1 Where Offering Over Asking Price Makes Sense: The Home is Seriously Underpriced
Sometimes sellers underprice their home. That can happen when the seller is in a big rush to sell, is hoping to spark a bidding war, or doesn’t know the home’s true value. In any case, it can help you to offer more than what the seller wants – especially if there’s going to be a bidding war. A higher offer can fast-forward you through the whole process and encourage the seller to accept your deal.
Related: How hard is it to get a mortgage with student loan debt?
Situation #2 Where Offering Over Asking Price Makes Sense: You’re Competing With Cash Buyers
Cash buyers are desirable to sellers because they know that the financing isn’t going to fall through; these people have the money on-hand to buy the house outright. Sometimes offering more than asking price is wise when you’re up against cash buyers, who likely have a cap on how much they can pay; if you can offer more than the cash buyers are offering, the sellers may choose your offer to bring in a bigger profit.
Situation #3 Where Offering Over Asking Price Makes Sense: Your Agent Tells You That You’re in a Seller’s Market
When you’re in a seller’s market, that means there are more buyers than there are available homes. Sellers have a mathematical advantage in this situation; buyers are going to be competing for the few homes that are on the market. That means as a buyer, your offer really needs to stand out – and one way to make it do so is to offer more than what the seller is asking.
Related: I’m buying a house but don’t want to join an HOA – now what?
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