Buying a home can be overwhelming, and first-time homebuyers tend to have a lot of questions. One of the questions we are asked most at CENTURY 21 North East is when should you offer above asking price? Below we go over some ways to know it's the right decision to offer above the listing price. Still have questions? We're here to help! Contact CENTURY 21 North East today to speak to an agent.
It’s A Seller’s Market
A seller’s market is when there are more home buyers than sellers. That means there is more demand than supply of homes for sale. As a result, homebuyers deal with increased competition and have to act fast and bid high to get sellers to accept their offer.
You’re Competing With Cash Buyers
Home sellers love all-cash offers. All-cash homebuyers don’t need a mortgage which means sellers don’t have to worry about lenders falling through. If you know you’re competing against all-cash offers, making a bid above the listing price can help you persuade the seller.
It’s Your Dream House
If you find a house and you adore it and can’t see living anywhere else, offering above the listing price can help you lock down the property.
The House Is Underpriced
Some sellers decide to list their homes below the property’s market value. Usually, this is to spark a bidding war. If this is the case, ask if there are other bids on the listing and if there is it may make sense to offer a bid that is over the listing price to get the seller to accept your offer.