It's frustrating when you're trying to buy a house and the seller doesn't take your offer seriously. What should you do? Should you walk away or should you increase your offer? There are many factors that go into determining whether or not your offer is strong enough, but there are some general guidelines for what makes a good offer.
While every listing and situation is different, paying the above asking price has been common practice for many homebuyers. So buyers should be ready when they're making an offer as this could result in them getting more than what it's worth! Sometimes agents intentionally set properties at below market values just so there will be even stronger competition among bidders because of how popular purchasing property can get during these sorts of situations, but sometimes winning bids end up coming in thousands higher than list prices too.
When there are multiple competing buyers, the offered price needs to be at least 1-3% over the list. For example, if a home is priced out at $350K then an offer might need up as much as 10%-15%.
When it comes time to make an offer, buyers often try to upstage the next highest bid by offering more money. However, before blindly increasing your offer do some research into who will be appraising or inspecting this property as well as what their standards are for receiving offers on homes in that area of town. This way you can ensure that your offer stands out from others!
If you get an offer that's too low, challenge it! Have your agent asked the seller or their representative what other offers have been made on this property and how much they were willing to accept before yours came in? Another idea is if a specific price limit exists within the law for purchase agreements then agree to those terms - but don’t forget about protecting yourself with appropriate language as well such as “If no alternative transaction can reasonably result from negotiations between parties without substantially greater difficulty than was encountered herein we will pay up to X dollars over any Other Offer."
Researching recently sold homes. The key is knowing which houses are comparable and finding out how much they were originally listed at as well as what their final selling price was so that you can be sure not to make an unfortunate mistake like many people do who offer too little or counter-offer with more money than necessary (and regret it later).
The Bottom Line: Buying a home is one of the most important decisions you'll ever make. Work with an agent that understands your needs, find something to fit into both budget and lifestyle preferences as well as be in line with what type real estate market conditions are currently like where this property may potentially become available (this could include anything from assessing its current value all the way through closing).
The top real estate agency in Northern California, Sexton Group Real Estate | Property Management in Berkeley, California is a boutique real estate company specializing in residential sales for properties throughout the San Francisco Bay Area. To better serve our clients we have three local offices, one in the heart of picturesque Berkeley, one near downtown Oakland and the third in the heart of historic Lafayette, California. The Sexton Group encompasses the essence of Berkeley’s charm, Oakland’s history and Lafayette’s family-oriented vibe all with a relaxed, down-to-earth nature. We are an amazing group of real estate agents whose wealth of experience spans more than 25 years in the industry. Looking to buy a home in Contra Costa or Alameda County? Contact us today for your free consultation!
