House Hunting? How Much Should You Offer over Asking Price?
As my buyers continue to try to compete to buy the home of their dreams, they ask, “How much should you offer over asking price?” As the old saying goes, “If I had that answer I wouldn’t be selling real estate.”
The local Overland Park real estate market has really blown up in the last few months. There are so few houses on the market in certain areas, how can you compete?
A day in my life
One night last week, I met some buyers at a beautiful house in Overland Park at 7:00 p.m. Cars were lined up out front and up and down the street. You would have thought someone was having a party. No, it was just a bunch of people who were trying to buy a house.
The house had come on the market that morning. It was in that “under $300,000” price range in the Blue Valley School District. That alone was enough to bring out probably at least 30-40 home buyers and their agents. When we arrived, there were at least 25 Realtor business cards lying on the kitchen counter. There were also 6 other agents and their buyers in the house at the time I was there. The listing agent indicated he would be accepting offers until 3:00 p.m. the next day.
There were a lot of features in this house that would appeal to the average home buyer. The house was also on a fenced, beautifully landscaped, cul-de-sac lot and the kitchen and master bath had been recently updated. It was everything everyone wanted and for a reasonable price.
My buyers decided they wanted to make an offer. While standing in the backyard, we had the discussion of what it might take to buy this house. They said they would be comfortable offering $10,000 over asking price with a flexible close date that would hopefully work for the sellers.
I wrote up the offer and presented it around 9:00 that night. We knew we wouldn’t know anything until at least 3:00 the next day. So we all waited impatiently.
How much should you offer over asking price?
That answer remains a mystery. It’s what you are willing to pay to get the home of your dreams – within reason. The following morning I received a message that they had received multiple offers on the property and to bring our best and final offer by 3:00 p.m. I reached out to my buyers but they didn’t have any interest in paying more than $10,000. Later that afternoon, I received a message thanking me for the offer but they had accepted another offer on this house. I immediately contacted my buyers and let them know the bad news. $10,000 over asking was not enough? I asked them if they thought $10,000 over asking would get the house. They both said no.
While we won’t know what that house sold for until it closes, it’s hard for buyers to understand the current market. It all goes back to the law of supply and demand. If there are only so many houses for sale, buyers will fight over one to get it. There is only one winner in the game of real estate. You have to be willing to offer over asking price to even compete.
We’ve looked at several other houses since then. It’s both disappointing and heartbreaking that there is so little inventory and so many buyers all competing for the same houses. It’s a great time for sellers who are moving out of town or moving up but a very hard time for buyers just trying to buy a house.
It only goes to show, Overland Park continues to rank as a top favorite place to raise a family. With a top rated school system and convenience to just about everything, many families want to live in Overland Park. I’ve had many buyers who have had more success by buying a home off the beaten path with little to no competition. In some areas, it’s not necessary to offer over asking price.
If you or anyone you know is thinking of selling their home in Overland Park, Olathe or Leawood, please call me at (913) 515-3250 or contact me here. If you are in the market to buy a home, you owe it to yourself to understand the rules of the game. Our next FREE home buyer workshop on Tuesday, May 23rd. Sign up here.
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Today’s New Listings – Homes for Sale in Overland Park
$369,950 : 13291 Bluejacket Street, Overland Park5 beds, 3.2 bathsListed with Realty Executives
$185,000 : 7516 Kessler Lane, Overland Park3 beds, 1.1 bathsListed with Platinum Realty LLC
$569,000 : 11001 W 163rd Court, Overland Park5 beds, 4.1 bathsListed with RE/MAX Realty Suburban Inc
$162,500 : 7915 Shawnee Drive, Overland Park3 beds, 1.1 bathsListed with ReeceNichols CC Plaza
$575,000 : 9509 W 164th Street, Overland Park4 beds, 3.1 bathsListed with ReeceNichols Granada
$544,275 : 9011 W 165 Terrace, Overland Park4 beds, 3.1 bathsListed with ReeceNichols Wilshire
$522,500 : 9018 W 165 Terrace, Overland Park4 beds, 3.1 bathsListed with ReeceNichols Wilshire
$526,325 : 8706 W 165 Terrace, Overland Park4 beds, 3.1 bathsListed with ReeceNichols Wilshire
$535,873 : 8303 W 166 Court, Overland Park5 beds, 4 bathsListed with ReeceNichols Wilshire
$169,000 : 7411 W 71st Street, Overland Park3 beds, 1 bathListed with RE/MAX State Line
See all Real estate in the city of Overland Park.
(all data current as of 9/20/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.