4 Reasons to Offer More Than the Asking Price

It may come as a surprise to learn there are valid reasons to offer more than the asking price when you have your eye on a home you’d like to buy. The strategy behind offering more could be rooted in a market-driven strategy or it may be purely driven by the buyer wanting the home...no matter what. Let’s explore some of the influencing circumstances that support offering more than the asking price.   

1) It’s a Seller’s Market

Sellers have the market advantage when the demand for homes is higher than the current inventory. It’s not uncommon for multiple offers to come in higher than asking price in this type of market. The competition for each home has increased. Start with a strong initial offer in a negotiation, then decide your maximum acceptable price to be prepared for a counter-offer. A strong first offer sets a favorable negotiation tone, while a pre-determined limit ensures you don't overpay or go against your budget.

2) Strategically Underpriced

By underpricing, the seller is hoping for multiple offers and a lot of interest in the home. This sales tactic is intended to create a bidding war to push the final price higher.

3) Home’s Features are in High Demand

Location is important to a home but so are home’s features. Top asked-for, in-demand features include: smart home technology, energy efficiency, outdoor living spaces, and updated, functional kitchens and bathrooms and a home that is move-in ready. Does the home have flexible and multi-purpose rooms, and ample storage? These, too, are high on a buyer’s wish list. Buyers are willing to increase their offer when the features they most want are present in the home they are interested in.   

4) Competitive Offers

When you’re competing against multiple offers, you may be invited to increase your offer. Another alternative is to increase your earnest money deposit. This signals to the seller that you are financially strong and there is more at stake if you back out of the sale. Being flexible with the closing date can nudge your offer ahead of others being considered. If you have the flexible timeline and the seller wants to close quickly, this flexibility can be the edge to have your offer standout.

When you find the right home and don’t want to risk losing it, discuss with your agent the advantages for offering more than the asking price. Got questions? Reach out. I’m happy to help you sort through things, negotiate on your behalf, and help you find the best place for you and your family. 

Since 2004 Sara Lyn Nguyen continues to bring a wealth of knowledge and expertise about buying and selling real estate around the Houston area to those she serves. Sara is a multi-year award winning REALTOR® and relocation specialist where her clients trust her to have up-to-date information on the real estate market. She has been one of Gary Greene’s Multi-Million Dollar Top Producers, and citywide was the #2 Top Producing agent in 2020, #3 in 2021, #2 in 2022, #5 in 2023 and 2024. When it’s time to buy, sell, invest, or relocate speak with a trusted professional knowledgeable in the homes and neighborhoods of Fort Bend/Sugar Land and the surrounding region.