In today’s competitive real estate landscape, it’s not uncommon to hear stories of homes selling for thousands—or even tens of thousands—over the asking price. But should you offer more than the list price when buying a home?
It depends. Recent research from Redfin shows 28% of homes nationwide have sold for more than asking price. Back in 2023, nearly 60% were above asking. It all comes back to the market and your unique buying factors.
In some situations, going above asking can be a smart move—especially if it helps you land your dream home or edge out competing buyers. Let’s walk through the most common scenarios where it makes sense for you to offer over asking price.
5 Smart Reasons to Consider Offering More Than Asking Price
In general, there are only five instances when it could make sense for you to make an offer over asking price. Those are:
1. You’re in a seller’s market
If you’re shopping in a hot real estate market, bidding wars are common. That means homes are likely to receive multiple offers within days—or even hours—of being listed. To stand out, you may need to offer more than asking just to be considered.
Tip: Look at recent sales in the area. If most homes are selling at or above list price, that’s a signal you're in a competitive market.
2. The home seems underpriced
Sometimes, sellers list their homes slightly below market value to drive interest. If a home seems like a bargain, don’t wait around hoping to negotiate further—it could backfire. An aggressive offer may help you beat out bargain hunters and close the deal quickly.
To learn more, see how real estate agents ignite bidding wars.
3. It’s your dream home
Found a place you love? If this is the one—and you’ve been searching for months—it may be worth stretching a bit above asking. Just make sure to stay within your budget and get preapproved for a mortgage to ensure you can make a strong, credible offer.
4. You’re asking for concessions
Want the seller to cover some of your closing costs, throw in repairs, or allow a longer escrow? Sweetening the deal with a higher offer can increase your chances of getting the terms you want. Sellers are more willing to negotiate when they feel like they’re still coming out ahead.
Be sure you understand the most common concessions in today’s market so you don’t upset the seller during negotiations.
5. You’re competing with a cash buyer
Cash buyers can close quickly and without financing delays, making them attractive to sellers. If you’re using a mortgage, offering more than asking may be your best bet to compete—especially if the seller values speed or simplicity.
How Much Over Asking Should You Offer?
There’s no universal rule, but most competitive offers go $5,000–$20,000 over asking, depending on the home’s price and how many buyers are involved.
Here are a few considerations:
- Ask your agent to run a comparative market analysis (CMA) to ensure your offer aligns with the home’s value.
- Stay within your appraisal range—if the home doesn’t appraise for what you offer, you may need to cover the difference out of pocket.
- Consider an escalation clause, which automatically increases your offer up to a set limit if another buyer outbids you.
Final Thoughts: How 2-10 Can Help
Yes, offering more than asking price can be worth it—but only when done strategically. Whether you're trying to win a bidding war or make your offer more attractive to the seller, be sure your offer aligns with both your financial reality and the home’s true market value.
And remember: Buying a home is just the beginning. Protect your investment from the start with a comprehensive home warranty from 2-10.
Key Takeaways
Here are some of the most important points to keep in mind if you’re wondering, “Should I offer over asking price?”:
- Offering over asking price can help you win in a seller’s market or secure your dream home.
- Always know the home's real value and stay within your mortgage preapproval limits.
- Sweeten the deal if you're asking for concessions or competing with cash buyers.
- Consider appraisal risks when going too far over asking.
2-10 HBW offers comprehensive Home Warranty coverage for homeowners. Let us help you protect your home.
