Offering more than the asking price for the property that you want to buy might seem to be a strange bidding method and also one that might seem downright foolish at first glance, but in certain situations, it makes all the sense in the world – here is some more about how it all works and some situations in which the method is used.
Buying on a Seller’s Market
The price you will have to pay for a property depends not only on the value of the property, but also on the dynamics of supply and offer – when there are more sellers than buyers, the sellers compete for the attention of the buyer by lowering their prices, but when it is the other way around, with more buyers looking for property than there are properties to sell, like on the Todd Creek homes for sale 80602 area, it is the buyer who should convince the seller that the offer on the table is serious and also the best. One of the ways to do this is by offering a price over the asking price.
Going Against Competition
You can get in front of the competition by making a higher bid. However, use the strategy only if you know for sure that you have competition – if yours is the only offer, it I a waste of money to offer more for the property that the asking price set by the seller.
The House is Listed for a Price that Is Lower than the Price for Similar Properties
If you have found a property that has all the qualities that you want and it is also cheaper than the price asked for similar real estate, chances are that other buyers have also noticed the under-priced estate and are ready to make their offer, just like you. To grab the attention of the seller before other buyers overtake you, you can offer to pay more than the buyer has asked for and to make your offer even more convincing, you can put that into writing as well.
You Have Fallen in Love with the Property
If you have found the home of your dreams and the price is also right, it would be foolish to lose it for a couple of hundreds of dollars. Make a quick calculation to see how much over the asking price you can afford to pay and add that amount to your bid to secure your place among the best potential buyers. You can also offer to make the seller’s life easier by giving them more time to move out and you can make your offer more convincing by attaching a letter of loan pre-approval to your offer.
The Others Are Cash Buyers
The only way to stay competitive against cash buyers is to offer more for the property than the cash buyers would. Most cash buyers are looking for fixer-uppers that they can flip and sell for much more – if you like the property and you want to live in it, you can emphasize that aspect, too, when you meet the seller.