One of the most common questions I get from home buyers is: “how much over the list price do I have to offer?” My answer is: “it depends”. Some houses sell
for less than the asking price but on average houses sell for less than the asking price.
How a house is priced and what price range it is in matters. I prefer to work in percentages for that reason.
When a house comes on the market also matters. Houses that get offers the first day that they are on the market almost always sell for more than the asking price. Offering 5% more than the asking price might be enough unless someone else offers more. It is a guessing game at this point.
If the house has been on the market for more than two weeks it might be overpriced. A buyer could offer less than the asking price and have a winning offer. Right now there are 65 homes for sale in St. Paul that have been on the market for at least 14 days but less than 30 days. Most are condos. Most will sell for less than the asking price or the price will be reduced.
Waiting for a price reduction after the price is reduced the home may get multiple offers. Waiting for the open house is also a mistake. Both are mistakes that most homebuyers will make a few times before they succeed.
One of the advantages of working with an experienced Realtor is getting help making an offer that makes sense. There are more buyers than there are homes for sale. Buyers will be competing with many other buyers including corporations that pay cash.
