I’ll
Never Pay More than List Price!
Many homebuyers are not willing to pay more than
the seller’s asking price, and who can blame them. Because everyone knows that sellers always list their home for more
than they really want to leave a little “wiggle” room, right? WRONG!
According to Zillow, buyers in 2017 paid more than the asking
price 24% of the time for all U.S. home sales — a 6.2 percentage point
increase from 2012!*
In Houston, 32.6% of all home sales
in 2017 were sold over list price with a median of $9,796 over the asking
price!*
So why would anyone pay more than
list price? Several reasons, low
inventory of available homes has been the number one contributing factor. As a buyer, you have selected the area you’d
like to live; maybe because of a particular school district, or proximity to
work, etc. Therefore, you are in
competition with hundreds of other buyers that are just as qualified to
purchase a new listing. In an effort to
leverage your offer and more it more attractive, you choose to pay a premium.
Absolutely nothing wrong with making
an offer more than list price, as long as your real estate agent has done their
homework for you. A competent real
estate agent should prepare a CMA (Comparable Market Analysis) which should help
you decide if the property is priced fairly.
With the increasing prices in the Houston area, a premium price may be
worthwhile and justifiable.
So if you can justify your offer, don’t
be afraid to offer more than list price for the home you want. If you don’t, you may end up with a home you
really didn’t want, or worse yet, no home at all!
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