Is it reasonable to offer the asking price when you are certain there is a lot of competition and showings within the next couple days?

Asked by Tonyam831, Elysburg, PA Tue Jan 24, 2012

My husband and I have been looking for our first home for about a year and a half, there hasnt been much to choose from. A house just came on the market yesterday we went to see it today and we really want it. We were informed that there were many showings tomorrow and the next day. The asking price is rather low for a house in this area that is remodeled. We do not want to loose this opportunity or be outbid, however, offering the asking price seems like the wrong decision. Yet, if we offer lower, someone very well could offer the asking price and then our chances would be gone.

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5
Roland Vinya…, Agent, Sprakers, NY
Tue Jan 24, 2012
If you really want it, feel it is more than a good buy, and are legitimately afraid someone else will also want it, then offer a bit more than asking price. Oft-times that is enough to turn off other buyers. Put an expiration date on your offer, giving the owner just enough time to fairly consider it, and no more.
1 vote
start with the ask. you will be in 'first' and if anyone else makes the ask after you, then you can go a little higher if you want to do so
Flag Thu Feb 9, 2017
Dan Tabit, Agent, Issaquah, WA
Tue Jan 24, 2012
Tonyam,
How much to offer is always a difficult question to answer here. Some homes come on the market overpriced; some just about right and a few are artificially low...to draw in multiple offers.
I hope you have an agent working exclusively for you and not the listing agent. Some buyer's have the false impression that the listing agent will be fair or represent both sides, I don't believe this is humanly possible. They have a contractual relationship with the owner prior to meeting you. They promised the owner to get "top dollar" for their home and they should try to do that.
A buyer's agent working for you will do a market analysis to determine what type of offer you should make, full price, lower or even higher if there are other bidders. You really can't do better than to have a great agent in your corner who knows the local market, can do the research and create a successful strategy to help you buy the right home. I hope this helps.
1 vote
Ron Thomas, Agent, Fresno, CA
Wed Jan 25, 2012
LISTING PRICE
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.

Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)

Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.

Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
0 votes
Marco Gomez &…, Agent, Jackson Heights, NY
Wed Jan 25, 2012
If you feel you would be outbid then you should present the highest and best offer you are willing to give.
0 votes
Bill Eckler, Agent, Venice, FL
Wed Jan 25, 2012
Hi Tony,

Sounds like your wait has finally paid off....

This is one of the many services provided by real estate professionals. Do you have an agent that you are working with? Along with your agent's support you should be able to determine if the "asking price" is below, above, or at the fair market level in this location.

There is a reason why there is and will be considerable interest in this property......it's priced to sell. If the home is priced below the current market level making an offer below the asking price may result in your elimination if there is multiple interest and/or offers. One would hope that making an offer at or slightly above the asking price would keep you in the hunt...even with multiple offers.

Your agent should be able to guide you through this process. One thing is for certain...the good ones go quick. So don't hesitate to see it ASAP and make your decision sooner than later.

Best wishes,

Bill
0 votes
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