Hi Faboversee:

The answer to your question is you can pull the offer and make a new offer with the amount that you feel comfortable with. Could this cause you to loose the property, yes (you really don’t know if you would have been able to purchase it at the price you offered, unless it was accepted). Once you have been accepted it is very difficult to lower an offer at that time. But if you have made an offer that you think is not right for you, then you should probably pull the offer anyway. Unfortunate most homes are getting multiple offers. The supply in Corona is only about 2 months which effects pricing. Your offer should be based on closed sales not on the asking price. Have your agent give you the comparables so that you have the opportunity to make an informed decision.

Good Luck:
Diana 909-945-5763

I had to jump in here and respond to your question.
If you are buying in Corona this is the norm. I've written an offer as high as $100,000 over asking price and my client still didn't get the home. The buyer that wrote $90,000 with a large down payment got it.
Point being that above asking price in Corona is the norm right now. At the $480,000 price point you may have to offer more than just $20,000 extra to get the home you want. Talk to your Realtor, make sure that they are experienced and in the trenches in what's happening right now in the Corona market. I know it sounds crazy but it's the reality. The inventory of homes here is so low and it goes back to Economics 101...supply and demand. What I am telling my buyers is find out from your lender where your cap is and then look at homes about $50,000 less, so you give yourself a $50,000 cushion to go over asking price.
Feel free to call me if you want to talk more. I live and work here in Corona. I wish you the best of luck. Be patient, you'll get something.

I do not want to interfere with another agent's client and you have made an offer, so I assume you are using a Realtor? If yes, please ask them first. If not, my opinion is that you should realize that homes are often selling for well above asking price. Is the house a foreclosure or short sale? If yes, then you can still be getting a good value even at 10% over asking price. Remember, not every seller chooses a price expecting buyers to bid it down. Many of the smarter ones price their house way below market knowing that it will start a bidding war and sell for a good price, but much faster. Hope this is some help, if not, post me back. Again, if you have a Realtor, please speak with them about this.

If your offer is accepted then you, in most cases, have a legally binding contract. Do you have an agent representing you? How long ago did you make the offer? Any chance they have not seen the offer yet? If so, you may be able to make a change before it is presented to them.

This is in no way intended to be legal advice. Please see an attorney or broker in your area for specific laws concerning your offer. Best of luck to you.