It's no secret that when it comes to real estate, buyers seek to pay as little as possible to get their dream home, and sellers look to sell their property quickly and for top dollar. It's logical to think that you should make an offer at or below the asking price. In some situations, however, paying above list price might be the only way to get that house and avoid losing out from other buyers interested in Waco homes for sale. So, when exactly should you offer more than the seller is asking for the home? Here are some of the circumstances when this pricey move is essential.
- You're in a Seller's Market
A seller's market is when there are more buyers than sellers, and the demand outweighs supply. You may be in a seller's market if houses are selling in less than 10 days and for 10% more than the asking price. In this situation, you'll see increased competition that will force you to act fast and up your offer to woo the seller. By evaluating what homes in the neighborhood are selling for, your agents can help determine the course of action for your case.
- You Have Competition
Bidding wars begin when multiple buyers fall in love with the same house and make an offer on it. This can happen even in a buyer's market when sellers blatantly underprice their homes just to spark a bidding war. So, before you make an offer, it's important to find out if there are other offers being considered. Armed with that information, you may want to go over the asking price to make your offer stand out.
- A Cash Offer is On the Table
Sellers swoon over all-cash offers. Paying in cash means the offer is not contingent on the lender approving the buyer for financing, so there's no risk of the deal going south if the lender doesn't fork over the money. A seller is more likely to go with an all-cash offer because they know the buyer has the money to close the deal easier and quicker. If there's a cash offer on the house you want, you'll have to sweeten the offer to get noticed. Going over the asking price may be the only chance you have to convince the seller to accept your offer.
- You Absolutely Adore the Home
If you've been house-hunting for a while and now you've found a home that checks almost all of your boxes, shooting a low-ball offer might mean losing the chance to lock in the home. If you feel your heart would be broken if you lose that house, you'll want to put in an offer that will be hard for the seller to refuse. Only you can decide whether the house is worth offering more than the asking price. Be open-minded and don't let your emotions take control of your financial decisions.
- The House is Underpriced
As already mentioned, some sellers deliberately price a home below market value to start a bidding war. Other house-hunters will also notice the price as quickly as you do, and the offers will start pouring in. When this happens, placing a bid that's over the asking price could put your offer at the top of the pile.
It's important to do a little homework and work with your agent to ensure the bid is in your best financial interests. Our real estate agents can help you navigate the process. Contact us today to learn more.