Krishna, Home Buyer in Olney, MD

Is it ok to bid 15k more above the bidding price(350k listed price) in a good neighbourhood like gaithersburg?

Asked by Krishna, Olney, MD Fri Apr 19, 2013

the schools are excellent

Help the community by answering this question:

+ web reference
Web reference:

Answers

14
Joe Shaver, Agent, Olney, MD
Fri Apr 19, 2013
Assuming the comps support the extra $15k it is often necessary in this price range to bid higher than list price. ALWAYS use an escalation clause when making an offer above list price and place a time limit on your offer. This will usually save you money. Good luck!

Joe Shaver
RE/MAX Realty Centre
240-372-8668
0 votes
Bridgette Ch…, Agent, Bridgewater, NJ
Fri Apr 19, 2013
Krishna,

The answer is yes under the following conditions:

1. The sales data in the neighborhood/subdivision support $15K above list;
2. You can get an appraisal to support the addition $15K in price; and
3. Your financing qualifies you for the increased loan amount. If not, are you willing to come to the table with the extra $15K.
4. The voice within tells you to move forward.

Many factors and variable come into play; however, ultimately, it's what you feel comforable with.

Much success! I'm sure things will work out for your good.

Bridgette L. Chase
Associate Broker | Exit Bennett Realty
301.974.7110 | mobile
0 votes
Thanks a lot .
The sales data in the neighborhood/subdivision support $15K above list;
i don't see it in the last 90 days but the home is in moving condition.
You can get an appraisal to support the addition $15K in price;
pre-approved does that mean the lender has appraised the property to 15k addition in price
The voice within tells you to move forward
if that's the case i wouldn't have to put this question. But if my agent asked me to bid for the listing price then I would have done that without hesistation.
Flag Fri Apr 19, 2013
Jessica Hood…, Agent, Gambrills, MD
Fri Apr 19, 2013
Only if the comparable sales data supports that price.
0 votes
the comparable in and around that area is selling slightly above or less the listed price but not a big difference.
Flag Fri Apr 19, 2013
In this market if you're only willing to bid higher, if you can justify it through comps... Good luck! It's a dog fight right now. Listing agent is going with best offer, not the best justified offer.
Flag Fri Apr 19, 2013
BJ Matson, Agent, Potomac, MD
Fri Apr 19, 2013
It's very hard to answer your question without knowing all the variables that exist. Each property is different. It's very possible that could be reasonable.
At the end of the day if that's what it takes to beat out another offer, and get the home... then as long as you're happy, go for it.
Problems may arise if it doesn't appraise. You can then pay the difference yourself, as your lender will not raise the loan amount...
0 votes
Akil Walker, Agent, Upper Marlboro, MD
Fri Apr 19, 2013
Hi Krishna,

sure if you feel the home is worth it. If you are financing your home it will have to appraise for the purchase price .

good luck
0 votes
Piero Marinu…, Agent, Silver Spring, MD
Fri Apr 19, 2013
As long as the house is actually worth that, it's fine. Just make sure you are covered with an appraisal contingency.
0 votes
Lise howe, Agent, Rockville, MD
Fri Apr 19, 2013
It is ok to offer 15k over list price but there is a risk that your new home might not appraise for the sale price. Unless you have extra cash on hand to make up the difference between the appraisal price and the contract price, you will want to include an appraisal contingency. Talk to your Realtor about recent sale prices in the area and whether to go with an escalation clause or a higher offer than list price. Your strategy also may be affected by the number of other offers submitted at the same time. Good luck!
0 votes
Shelley Green, Agent, Bethesda, MD
Fri Apr 19, 2013
Offering over list price is not uncommon in today's market. You need to be comfortable with the higher monthly payment amount and know that the property may not appraise. If it does not, do you have the cash to pay the difference and are you willing to pay more than an appraiser can justify based on comps in the past 6 months.
Your buyer's agent should be able to advise on you all the pros and cons before you make the offer.
0 votes
My agent suggested me to bid 15k over the listed price. it's like 4-5% above the listed price which i thought is unusual. I am also worried if some buyer would clinch the deal if I am not bidding more above the listed price. Very hard to come up with the right number. but when i looked at the recent sales in and around that area the listed and sold price matched in proximity without any difference. I lost a deal in north potomac bidding over 2000$ above the listed price. But there could be many reasons for loosing the bidding. The only thing that's stuck in my mind is the bidding price. As you asked about the cash I have the cash to bear the difference of 5-9K . Is it right way to determine the bidding price based on the recent sales in that area(Fernshire farms gaithersburg)
Flag Fri Apr 19, 2013
Craig Rosenf…, Agent, Gaithersburg, MD
Fri Apr 19, 2013
Krishna,

This should be discussed with your REALTOR based upon recent comparable sales. It could be fine as many properties are receiving multiple offers or may have been priced slightly below market value to garner multiple offers. You may also be protected by an appraisal contingency as well. If the property is an REO, you may be required to make up the difference between the appraised value and purchase price in cash if you bid over the asking price. Do you like the property enough to possibly pay more than the home may be worth in an appraiser's eye?
0 votes
thanks a lot.
it's not a foreclosure property.
My realtor suggested me to increase the bidding price because of the condition of the home and area.
The comparable home sales in that area (fernshire farms) is selling almost as same as listed price without huge difference. I am confused about his suggestion and the market conditions though he asked me to bid low for other homes and one of them went under contract but did not go through. I have a pre-approval letter and I don't know whether the lender over looked the Apparisal value for that property or not. The question is how to find the winning number ? It seems for hot school districts in montgomery county nothing matters except cash which some people seems to have it.
Flag Fri Apr 19, 2013
Raj Sachdeva, Agent, Annapolis, MD
Fri Apr 19, 2013
In the current market situation, I won't advice you to do that. House may not appraise for the price. Talk to your agent and tell hom/her to run comparable for the area.
0 votes
Jeff Escher, Agent, Rockville, MD
Fri Apr 19, 2013
It is not uncommon in the current market conditions for properties to sell 3-6% above the asking price. If you are obtaining a loan, the final price will have to appraise by the lender. Although it may be difficult to get your offer accpeted with an appraisal contingency, that is your best protection from paying too much. Of course, be sure to review recent comparable sales as well.
0 votes
Robert McArt…, Agent, Fallston, MD
Fri Apr 19, 2013
It happens...not that often however I would speak with your buyers agent first. It depends on several factors in your over-all offer.
0 votes
Joan Lord, Agent, MD,
Fri Apr 19, 2013
Yes, but if you are getting a loan, you need to make sure that the house will appraise for the sales price.

Joan Lord
0 votes
Tony McMahon, Agent, WHITE PLAINS, MD
Fri Apr 19, 2013
If the home is what you really want , where you really want to live and you are the one footing the bill . Absolutely ! Play to win !!
0 votes
There is a lot more involved in the bidding process and being the best offer presented , but that is the simple answer to your question.
Flag Fri Apr 19, 2013
Search Advice
Search
Ask our community a question
Home Buying in Gaithersburg Zip Codes

Email me when…

Learn more