Making an offer above or below the asking price
There’s plenty to consider when making an offer for a house – such as do you go above or below the asking price?
Whether a property sells for more or less than it’s on the market for comes down to a lot of factors – popularity with buyers is a major one. The more people who want it, the more likely that there’s someone willing to pay over the odds for it.
At the other end of the scale, a seller might accept lower than the asking price if a property hasn’t had much interest or has been on the market for a number of months.
Negotiating on the asking price is a common step when making an offer on a house. You may consider offering less than the asking price for several reasons, such as:
- The house needs work
- It’s been on the market for a long time
- There have been no other viewings or offers recently
- The owner is looking to sell quickly
- It has a short lease
Should you enter a bidding war with other interested buyers, you’ll often be asked to submit best and final offers – without knowing what the other parties have bid. A best and final offer is the maximum amount you would be willing and able to pay for that property.
Be careful when making a bid and be sure not to exceed the amount stated in the Agreement in Principle. Lenders lend on what the property is worth, not what it was sold for.