If you are in the market for a new home, you may be willing to pay more for the perfect property. Regardless of your income, though, you do not want anyone to take advantage of you. Specifically, you would prefer not to pay any more than the seller will accept.
It is not uncommon for homebuyers to offer more than the asking price. In fact, according to Realtor Magazine, more than half of all homes sold in 2021 went for more than sellers were asking. To ensure you pay a fair price for the property you want, you should know when to offer more than the asking price for a home.
Is it a sellers’ market?
Sometimes, due to simple supply-and-demand economics, the housing market is more beneficial to sellers than it is to buyers. This has been true in much of Florida for the past few years. While there are some signs the real estate market may be cooling, you should be ready to offer more than the asking price until a buyers’ market returns.
Are you in a bidding war?
If your realtor tells you there are other offers on the property, you may have to get into a bidding war. While you do not want to let your emotions get the better of you, you may have to pay somewhat more than the asking price. Setting a limit on how much you are willing to offer helps to protect you financially.
When sellers are routinely accepting more for homes, it can be difficult to know how much you should offer. Ultimately, by working with an experienced realtor, you increase your chances of securing the right home without spending an unconscionable amount of money.