Should I Offer More Than the Asking Price?
Right now nearly every area of the country is experiencing a sellers’ market where there are more buyers looking for homes for sale than homes actually for sale. One tried and true method for getting your offer to stand out and be remembered among several made on the same home is to offer the most money, especially if the offer is above the listing/asking price on the home.
Is it a smart investment to offer more money than a home is listed for just to win out against other interested buyers?
Potential Disadvantages of Making an Offer Above Asking Price
In many cases, the highest offer wins out and when it does the person that made that offer could find out after the official appraisal they offered more than the home is worth or that making an offer at list price would have been the highest offer.
How Much Over List Price Should Someone Offer?
In hot sellers’ markets it is not a horrible idea to offer above list price on a home, just make sure you have thought it through and asked the advice of trusted professionals before you do. If you do decide to offer more than the list price of the home, how much over the price would still be a smart offer to make?
There is no magic high number offer formula for making an offer on a home in a hot market, but a trusted, knowledgeable, and experienced agent can help you to put together a strong offer. It is an agent’s job to know all of the current facts, statistics, and current numbers of the market in which they work. Making an offer stand out and get the attention of a buyer can mean something different depending upon the local market in which you are buying a home.
Related: Can you offer over the asking price
Sometimes making an offer more appealing than competing ones has nothing to do with price and in other areas, it could mean offering a certain percentage over asking. It really depends on the particular home a buyer is interested in and the individual situation of the home seller. Some homeowners may be searching for a buyer who can offer a quicker closing while other homeowners may still be attached to the property and want to see a buyer that will respect and truly love the home the way they did. (This is when attaching a personal letter to an offer can win out over the highest bidder.)
No matter what, if you do decide to offer more than list price makes sure it is after you have sought expert advice, have sought an expert’s assessment of the property value, and are prepared with cash funds to pay the extra money should the official assessment come in lower than your offer.
Whether you're planning on selling your West Ocean City home, understanding the market is a huge part of knowing how to price and sell. Contact our office at any time to find out what your Ocean City real estate or property is currently worth. You might be surprised! Home values are up all over the place! Let us help you get every penny you deserve.