One of the first questions buyers ask these days is: How far over the asking price should I go to get the house I want? Obviously, it all depends. But broker David Rathgeber of Your Friend in Real Estate in Arlington, Virginia, has a formula. Nearly two-thirds of all buyers find themselves in competitive situations.
For a 90 percent chance of success, Rathgeber suggests that buyers need to offer about 12 percent over the asking price. For an 80 percent chance, offer about 9 percent over. Going 5 percent over, he said, only gives buyers in that market a 50 percent chance of winning the house.
Another tip: When you specify the amount by which you are willing to beat other offers, make that figure end in $500 – as in $3,500 rather than $3,000. “Avoiding round numbers will give you an edge over 90 percent of other offers,” Rathgeber said.
Of course, buyers should only offer above list price if they really want the house, it’s been on the market for less than 10 days, and they have been assured there are other offers on the table.
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