The housing market. If the housing market favors sellers over buyers, you'll need to offer more in order to remain competitive. Paying in cash also increases the competitiveness of offers. This situation is somewhat true of today's housing market, in which limited supply does not meet the high demand. Sales of nearby comparable homes can help you evaluate the market, which varies geographically.
Seller motivation. How eager is the current owner of a home to sell it? Consider a family that has been relocated due to a parent's career. The family has already moved, but its prior home is still on the market. Considering the family is losing money on maintaining the home, and not deriving any benefit, a lower offer stands a better chance than it might for a family that has not yet moved and faces little time pressure.
How long the house has been on the market. This is linked to seller motivation. The longer the house sits on the market, the more work it is for the owners to constantly clean it for showings, consult with their Realtor, etc. Also, sellers who are eager to move will likely grow impatient if buyers do not show interest in their house. Therefore, generally speaking, the longer a home sits on the market, the more likely its owner(s) will be to accept a lower offer.
Overall, many Realtors advise buyers to offer at least 90% of the asking price. However, as noted above, this figure is dependent on many moving parts. In some markets, buyers may even find it necessary to make offers above the asking price. This is one of the reasons that having an experienced Realtor familiar with the area in which you are buying is so crucial. Interested in buying or selling a home in Central Ohio? Contact me to see how I can help!
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