Profile picture for LuCasas Manuel

i am looking for a house, however my realtor wants me to increase the offer to the listing price,

I am currently looking for a house, however, my realtor wants me to increase the offer to the listing price because according to her there are lots of investors that are paying cash and the CA inventory is getting low. I'm I bidding to the standard sale?
  • May 04 2013 - Riverside
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Answers (5)

Best Answer

Profile picture for hpvanc
It's a red flag, that you may be buying into a housing bubble.  If you buy at above current prices in an overheated market you will likely become another underwater homeowner in a short time. 

Check out this article "Robert Shiller Issues Warning Over Housing Recovery"
  • May 05 2013
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Depending on the general price range of the homes you are seeking, it may not be a bad decision to increase your offer to asking price. We all understand there is an inventory shortage in many locations and if you want to buy in that location you must pay the market price and in some cases it may be more than asking price. The positive is that with interest rates at historical lows, it may make sense to move forward with a reasonable offer if the property has been priced fairly. Ask your Realtor to do a market analysis to get a good idea of recent sold listings and check Zillow for the trend in your location. This may help you make a decision regarding paying asking price or higher in order to get the property you want. If you are not successful on one or more offers, just be patient. Like a friend of mine once said " Buying a house is like waiting for a bus. If you don't get the one you planned for, just wait and another one will come along shortly." 
  • May 05 2013
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Profile picture for Jason Muse
Some good advice already given, however, you are the boss.  If you are not willing to increase your offer, then stick to your guns.  Just be prepared to keep looking.  Best of luck!
  • May 05 2013
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Most areas are suffering from low inventory. If you want a house that has multiple offers on it you need to bid accordingly. 
Have your Realtor run the comps to see what the comps are in the area. Sometimes over list price could be below market value. Sometimes market value is well below list. 
You need to make the decision if you want to buy or not because in most cases buying means paying over list. Interest rates are very low and if you are staying in the home for awhile you should just go for it or you';; miss the boat.
  • May 05 2013
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So if you increase your offer price above listing price and it does not appraise at that value are you able to pay the difference in cash? Stay on top of your market area and make sure your broker is letting you know as soon as new listings hit the market. Also Fannie Mae and HUD foreclosures have an initial period open to owner occupants only not investors. I am a HUD and Fannnie Mae Broker if you need help.
  • May 05 2013
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