This is a question that I get periodically from buyers. During the overheated market from 2003 – 2006, this wasn’t a question asked very often. Back then, buyers routinely paid more that the asking price to get a house. That ended in 2007, and now the majority of times, the asking price, or below is what is offered.
That being said, there are some instances where the asking price is intentionally set low by the owner and agent. This is especially true in the case of foreclosures and short sales. This is a strategic decision on their part. The lower the asking price, the better the chance of attracting an offer. Once that offer is received though, the bank counters with a higher offer.
Buyers are confused by this strategy. They offered what was asked, and got turned down. I’ll bet that doesn’t happen when you go into a retail store like Macy’s or Target. Real estate isn’t like Macy’s or Target though, and that’s an important distinction. Real estate transactions include offers, counter offers and negotiating.
The best thing to do in this situation is to consult with your agent. He/she can determine whether making an offer over the asking price is the right thing to do. Two things come into play here. Your desire to get that house, and the current comps for the property.
Whether you should ever pay over the asking price for a house should be given serious consideration. Many times, it’s still a good deal.
