Is Asking a Buyer to Bid Over Asking, Over-Asking?

Its an interesting conundrum (and a tongue-twister) that a lot of buyers are faced with lately. Is offering over the published asking price going too far? Is this good for the buyer or an advantageous strategy? Well, it all depends.

In 2012 we saw many units that had multiple offers, some even before the initial open house was held, and many from cash buyers as investors all over the city. In some cases, submitting an offer for a few thousand dollars over the asking price was the factor that got our clients the unit over another buyer or buyers. This is especially true of units where the owner occupancy in the building is high and the location desirable. Home buyers want to live in buildings where the amount of tenanted apartments is low, which also makes financing easier. Investors are looking for units where there is easy accessibility to transit, education or even medical institutions as these tend to be a higher yield investment for them. The problem for the average buyer can arise when an investor submits an "all cash" offer, which can virtually block out all offers that have financing contingencies attached to them. So how can you get the upper hand as a homebuyer?

We like to say "its all about the right FIT at Fitkova" and that adage is so true when it comes to bidding on a unit with multiple offers. Miro has years of experience in getting her clients the best deals for highly sought after units. Her expert advice has helped many of them secure what could have been a lost deal. By sweetening the deal, as it were, with perhaps an amount over the asking price or dropping some optional contingencies may make all the difference.

With her vast knowledge of a lot of the associations in the areas she services, Miro has gotten to know a lot of the buildings and may have attended inspections in the very same building you're interested in. drawing from past experience with the association and management she may be able to assist you in dropping your inspection contingency which cuts out a lot of work for listing agents – they love that!

Also, offering over asking may show the seller that you're a serious contender that is willing to negotiate to get a better deal. With years of negotiation under her belt, Miro is well versed in how to get you the best deal for the place you've fallen for!

So is over asking over-asking? In some cases, no not at all. But it takes an expert to let you know when to take the leap or whether you should wait for something that makes more financial sense for you. In essence, you have to find the right "FIT".