Asking Price or Higher
It doesn’t take a real estate tycoon or a degree in business to recognize that the current market is incredibly competitive. Furthermore, there is a subtle dance between buyer and seller that is filled with nuances and variations, a fine of balance of If/Then scenarios, if you will. Let me clue you in on one current trend and how to out maneuver other ambitious buyers.
As I said, the current market can be somewhat aggressive and because of this occurrence, many homes are now selling above asking price. That being the case, do you think coming in late in the game merely at asking price after a slew of other offers that are already in a bidding war far above the asking price is going to be effective in helping you walk away having had purchased that particular home? Probably not. The seller obviously is going to take one of the higher offers. I mean who wouldn’t? It just makes good sense.
So, when you are talking with your agent about what you plan to offer on a home or asking his or her advice on what they think might make a good offer on a home, more often than not, there is probably already more than one offer on the table. How about asking your buyer agent to call the listing agent first, and inquire about the possibility of any other offers that may have already come in on the property. It never hurts to ask and this will lay the groundwork for an informed decision on the amount you plan to offer. If the listing agent answers yes, there are other offers in, and if there is one or more, you have to assume one thing and this is it: If there is more than one offer on the property, or at least one pending, it is safe to assume that the first offer is at least full price. If you are going to be the second offer, or the third offer, or even the fourth, then going in under asking price is probably not a good idea.
You have to assume that at least one of the offers in place is at asking price or above. This way you can get a running start in the negotiation process and allow yourself a fighting chance to compete with the other buyers in the real estate game.