Two key things to consider if you want to offer over the sales price.

Should you offer over the sales price? There are multiple pros and cons to offering above the list price. Like anything else in real estate, it will depend on your situation, so let’s talk about what you should consider.

The biggest thing you want to think about is the timing—how long will you be in this house? Is it a forever home, a three-year property, or are you planning to stay in it for about seven years? 

On top of that, you need to consider your budget. If you’re approved for up to $500,000, but you’re only looking at homes worth $425,000, you have an additional $75,000 that you could leverage. If you’re maxed out at $350,000 but want to offer $375,000, there are ways to make up for that difference.

“Think about how long you’ll live in the home.”

Our best advice is that if you’re going to live in the home long enough to warrant the amount you’re offering over the list price, do it. If you know that your interest rate will go up soon, it might make sense to pay $20,000 extra to get in the house sooner. You’ll eventually get the money back in equity, and you’ll probably only be paying $20 to $30 more per month. 

If you don’t have a lot of disposable income, are at the peak of your buying power, or have a limited time in this home, you may not want to offer more than you need. For more details on this topic, or if you have real estate concerns, don’t hesitate to call or email me. I’ll be happy to help!