Since we’re in a Buyers’ Market, how much below the asking price should I make my offer when trying to buy a home?
How much below the asking price you paid for a house is a very poor barometer of whether or not you actually got a bargain price. In our market right now, there are properties that have been sitting stagnant on the market for many months that are so significantly overpriced that even if you offered $30,000 below asking price, you would still be paying more than market value for the house. On the other hand, there are homes that come on the market every week that are fantastic deals even if you were to pay full price for them. Not surprisingly, these houses sell quickly for close to full price.
The question to ask is, “How many other homes on the market offer me a better value for my money than this house at this price?” If the answer is, “Very few,” or “None,” then that price would likely be a good deal – even if you have to offer full-price to get it! If you’re going to be a bargain shopper, just know that when you come across a house that offers more value for the money than any other listing on the market, if you don’t act quickly to put that home under contract, you can be sure that some other savvy buyer will.