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Write an offer for over list price on a regular sale? Why? Why not?
Write an offer for over list price on a regular sale? Why? Why not?
On Trulia, a buyer in San Ramon CA asked  “For a regular sale, my broker is asking me to make an offer 15K more than asking price. I feel this is the wrong way to negotiate. Am I wrong?”   Several questions come to mind:
What is the market like where the buyer is writing an offer? Is it a seller’s market? Are properties selling quickly in competitive situations? What are the comps? How do the actual cash outlays and monthly PITI compare at certain sale price points? Here’s an example, assuming 4% interest rate, 10% down payment, 1% loan origination fee. Are the differences that significant that one would jeopardize getting the property by insisting on a lower offer than what the market would bear?  

Does buyer really like this property or can he afford to wait and find something else? Take a look at this blog by Steve Karney on Buying a Home? The COST Is More Important Than the PRICE  
Who will know better how to write an offer in this situation ---- an experienced broker, or a first time buyer? ... more

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