Before showing clients a home, Campoverde reviews recent sales of similar properties within a mile radius to see if the home is priced below, at or above its market value. That gives his clients a starting point from which to decide how much they’d feel comfortable spending on the property. It might be less than asking price, but Campoverde said if a home is priced on the low end of the spectrum, he wants his clients to realize that offering more that list right away can be a good move.
Make the Strongest Possible Offer: Offers involve more than just price. Such factors as a sizable down payment, the ability to close the sale in 30 or 45 days and a contract that contains a minimum of contingencies all make an offer more appealing to most sellers.
“The less complicated the offer, the better chance the buyer has of getting the property,” counsels Stary.
Have a Strategy: Buyers should always start with a strategy based on a solid analysis of the market value of the home, particularly if multiple offers are likely, advised Scifo.
When list price is well below the apparent value, an initial offer above list price may be the right move. Conversely, if the list price exceeds apparent market value, a more conservative approach may be wiser.
Ultimately, in a multi-offer situation, the seller’s agent is likely to ask all buyers for their highest and best offer. Buyers then must make a final determination of how much the home is worth to them.
It’s at that point a broker may tell clients to offer more than the list price if this is truly the property they want. Some will stick with their initial offer. Others will add just $500 or $1,000, and some may increase their offer by a much larger amount.