How much higher do I offer?
About one & a half year ago, often I was asked “How much lower can I offer?” It seems like those days are gone. Last week I wrote 3 offers for 3 of my clients. And yes, you guessed right, I was asked every single time, “how much higher do I offer?” Real Estate market has clearly changed, I’d say, since 2 months ago. Many properties receive multiple offers after only a short number of days on the market. Most offers are over the asking price. One of my clients offered $530,000 on property listed for $499,000, and his turned out to be one of the 14 rejected offers. From my experience and what I hear from my colleagues, offers may need to be over 10% of the list price to be considered a strong offer. What has been your experience recently?
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5 Responses to “How much higher do I offer?”
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Shokoofeh,
How true that the market has changed and it is so important to be on top of your market so you can help your customers make informed decisions.
Our area is full of micromarkets with some more active than others-converstions with other agents, lenders, title people and your teammates can provide lots of great information about our different market areas.
Brian
Hi Shokoofeh,
Thanks for the update on goings on in San Bruno. It is funny how quickly things change. And, thanks for asking for others input, I will be interested to see what other people are experiencing.
Jonathan
Shokoofeh,
I have also experienced the same thing. I have been working with a few clients and when we first started working together they would ask how much under they could offer, they soon learned the market and are asking how much over. They have learned that the listed price does not give the true value of the home, but instead it is better to look at the comparable properties in the area.
I did a quick analysis and it appears that for bank owned properties in Daly City, the sales price was an average of about 5-6% higher than the list price. Good information to know when submitting an offer with your clients.
Anyone else have a similar experience or thoughts?
Thanks again Shokoofeh,
Adam
We are seeing a number of overbids on homes in this price range. I just spoke to an agent who has an offer on a property in San Jose, the property is li9sted at $399,000. and there have been 39 disclsoure packages sent out. this is becoming more common place.
Larry
It seems like such a simple question but as we all know, it is not! As Adam points out, what are other properties in the area going for? What is the situation of the seller? Finally, the question that only the buyer can answer is, what’s it worth to you, the buyer?