I’m working with a client that was surprised when he heard that offers had come in on a short sale listing above the listed price (which is not unusual for a short sale or bank owned home priced well below market). This prompted the question that’s the title of this post.
He was not aware that offers could be submitted and accepted over listing price.
The listing price for a home is an asking price. Any listing can be negotiated to a final sales price either below or over asking depending on the situation. The seller is not obligated to take the first offer made at list price (or any offer for that matter).
I was involved in a short sale with another buyer where the seller listed at $112,000. After submitting an offer, we found out the bank would not take anything less than $120,000. In another case with a bank owned home, the price had been set well below market value. This generated about 20 offers within 3 days, selling for well over the listed price. This is a common listing strategy to generate strong interest in a home.
This is one reason to have a Realtor on your side when buying a home. They can assess the specific situation, analyze comparable market values, and recommend strategies for submitting offers that will work in your favor.