How Much Above Asking Price Should I Offer?
Author:
Katie ZiraldoApr 3, 2024
•5-minute read
If you’ve ever found yourself in a bidding war, you may have considered offering more than the asking price to purchase a home. But when should you consider this a valid option and how much above asking should you offer? In this article, we’ll explore everything you need to know about this strategy of buying a house to set you up for success in a competitive housing market.
Why Would I Offer Over Asking Price?
Also referred to as the list price, the asking price of a home is the amount the seller wants the buyer to pay to purchase the property. Although it’s possible to buy a home at or below the asking price, offering over the asking price is actually quite common, as it’s not unusual for real estate agents to intentionally list a property at a slightly lower price than the home value to attract more potential buyers.
A seller’s market – a market condition in which there are less homes available than there are buyers looking to purchase – motivates buyers to be willing to spend more money than they would otherwise. This is why the shortage of housing in a seller’s market can often lead to bidding wars. Offers submitted during a bidding war are often above the asking price.