LaLaLand or is it Fantasy Land?  You found your dream home, the price is right and you want to make an offer.  What does your Realtor mean when she informs you that your offer should be over asking price?



Short Sales: I have a client who is mesmerized by a Pasadena home that is a short sale – the asking price is so enticing that they had 12 offers.  I spoke to the seller’s agent; most of the offers were well over the “enticing” asking price.  They are waiting for the bank to decide if they will accept one of the twelve offers.  The asking price was like a bank’s adjustable sucker teaser rate – just made up to suck you in.

Multiple Offers: If you have been reading my blog you know the stats and the fact that a good percentage of homes continue to sell at or over asking price.  In any market, most sellers even banks want as much money as possible for their home. In 19 years of selling real estate, I have yet to have a client tell me that they want to sell their property for less than its worth. 

Deals:  The best real estate deals continue to be cosmetic fixers, those homes which have the major systems (plumbing, electrical, roofing, etc.) updated, but have the old wall paper and hideous carpet. Most buyers can’t see through the orange shag, if you can – this is where you will find the deal. Remember the term - sweat equity?

When a home has been on the market for over a month, it has lost it's luster, the Realtor and the homeowner are wondering what went wrong.  It was most likely priced too high and that is why the home didn't sell.... now that their optimism is fading, you should be able to negotiate off the asking price, but how much depends on the comps.