Should You Offer More Than The Asking Price?

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The answer depends on quite a few things, but primarily on the market trends and the asking price compared to the demand for this or this type of property.

The asking price for a property is an opinion of value. This opinion can come from the seller, the seller’s agent and or an appraiser: or any combination of these. These persons choose the price based on data; correct or wrong data, comparable properties and often emotion and ego.

Pricing is highly subjective and is often wrong: most of the time it is not too far off.  I should say that the simply act of pricing is suggestive. That means that buyers often assign value to a property, or at lease use it as a base to asigne some type of value based on price. This is true for any object or service, not just real estate.

So whomever chose the price could be wrong. The could have chosen a price that is too high or too low. It goes both ways. Sometimes it’s not easy to gauge market demand and sometimes pricing low is used to generate more interest.

The suggested price thus could be too low or too high and it is up to you and your agent to make up your own opinion of value before you submit an offer. It could be that you should offer less, but you may need to offer more then asking price, especially if you really want to home and others want it to.

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