Write an offer for over list price on a regular sale? Why? Why not?

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Real Estate Agent with Alain Pinel BRE 01367196
http://actvra.in/zwh

Write an offer for over list price on a regular sale? Why? Why not?

On Trulia, a buyer in San Ramon CA asked 

For a regular sale, my broker is asking me to make an offer 15K more than asking price. I feel this is the wrong way to negotiate. Am I wrong?

 


Several questions come to mind:Hot sale hot offer

  • What is the market like where the buyer is writing an offer? Is it a seller’s market?
  • Are properties selling quickly in competitive situations?
  • What are the comps?
  • How do the actual cash outlays and monthly PITI compare at certain sale price points? Here’s an example, assuming 4% interest rate, 10% down payment, 1% loan origination fee. Are the differences that significant that one would jeopardize getting the property by insisting on a lower offer than what the market would bear?

 

 

$350,000

$375,000

$400,000

Cash outlay for downpayment and closing costs


46,735


49,814


52,888

Monthly PITI (principal interest taxes and insurance)


2,109


2,260


2,411



 

  • Who will know better how to write an offer in this situation ---- an experienced broker, or a first time buyer?
  • Why hire a professional if you won’t listen to his/her advice?


Still want to write an offer for over list price on a regular sale? Why? Why not?

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Topic:
ActiveRain Community
Location:
California Contra Costa County San Ramon
Groups:
"Whacked"!!!
Diary of a Realtor
Market Reports
CALIFORNIA REAL ESTATE
First Time Homebuyer
Tags:
offer over list price
alameda and contra costa sellers market
san ramon ca sellers market
hot sellers market in contra costa county ca

Comments 16 New Comment

Rainmaker
1,163,175
Gene Riemenschneider
Turning Houses into Homes
Home Point Real Estate

If you hope to get into escrow you almost have to write over asking now.  The market is so tight.

April 30, 2012 09:52 PM
Rainmaker
572,502
DeeDee Riley
Realtor - El Dorado Hills & the Surrounding Areas
Lyon Real Estate - El Dorado Hills CA

Pacita,

You are so right about this?  Another question I would have is how much do you like this house and want it.  Our statistics have been showing it is a seller's market here in El Dorado Hills for a few months now.  And multiple offers are backing those stats up as well!

Have a great week!

April 30, 2012 11:55 PM
Ambassador
1,041,181
Michelle Carr-Crowe Just Call 408-252-8900 Luxury Homes in Top Silicon Valley Schools-San Jose, Cupertino, Saratoga & Palo Alto
Family Helping Families Buy & Sell Homes 40+ Years
Just Call 408-252-8900 Lynbrook Homes Cupertino KW

We just had to fight it out with 12 offers-and ours was 10%+ over asking in Silicon Valley, Calif.

May 07, 2012 11:15 PM
Rainmaker
657,393
Pacita Dimacali
Alameda/Contra Costa Counties CA
Alain Pinel

Gene --- I'm seeing this with my own listings and also on offers I write for buyers

DeeDee --- Scary for buyers who are now panicking at this turn of events

Michelle --- I wrote a cash offer on a short sale listed at $209K. They received 14 offers, and we were countered at $247K

May 08, 2012 08:29 AM
Rainmaker
1,274,297
Sally K. & David L. Hanson
WI Realtors - Luxury - Short Sale - CDPE, REDS
Keller Williams 414-525-0563

We had an explosion of activity and multiple offers on a property...now we are at the point where the buyer's lender is doing their appraisal....the offer was very significantly over asking....I can't wait to see what the appraiser says !

May 18, 2012 02:33 AM
Rainmaker
657,393

Pacita Dimacali

Alameda/Contra Costa Counties CA
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