It's truly amazing to me how much the real estate market has changed over the years. It used to be that buyers looked at homes, decided what they were willing to compromise on, then made an offer.
These days more and more buyers have a very challenging wish list that needs to fit into their budget parameters, and, after an extensive search, when they do find THE PERFECT HOUSE, they will ask me if I think 10-20% below asking will be ok?
Let's assume that if this house is that perfect, other buyers will probably be bidding on it, especially if your budget happens to fall into the sweet spot that most other buyers are looking in. If the house is priced within the market, then offer full price!
Offering full price will get you in the game, especially if other buyers are trying to low ball on the price. In addition to giving you the opportunity to have your offer accepted, it gives you the ability to ask for concessions depending on what is discovered during the inspection period.
I do have to get back to how much you love the home. If it's in the right neighborhood, priced well and fits most of your wish list items, this should be a no brainer.
Another thing to consider is that after losing out on a certain amount of properties, because you are trying to get "a deal", that may provide some incentive to offer the full price as well.
Please note this post was on May 31st, as you can see from the comments. For some reason it showed up in draft status today.
I wish that more agents would understand the market the way you do.
Ana, Sometimes that is exactly what it takes...losing the house a few times while trying to get "the Deal of a lifetime." What most buyers need to understand is that most of theses homes have been SLASSHED //// and have been lowered way beyond the original buyer thought it would ever go to. It does depend on the area and the comps. Write a solid offer if you love the home!
Hi Burbank, Excellent point of view,in many situations the buyer also needs to understand that they may lose the house of their dream, just because they trying to get a deal...
Thank you for the post!
Hi Ana, so true...if only they would listen..Two buyers that I am presently working with lost out on some great opportunites because they both submitted low ball offers and lost out.
It's so frustrating when buyers find the perfect house and then all they can think about is how much off the asking price can they get it... if it's in their price range and compared to all the other houses priced the same, if this is the favorite, that must say something!