Making an offer: should you bid above, below or at list price?

Are you ready to make an offer on a home? Depending on the condition of the property, the local market, and your level of interest, your realtor may recommend that you bid above, below, or at list price. Here are some circumstances in which each of these approaches would likely be advised.

Bid below
Making an offer that’s below the listed price might make sense if:

• The home requires major renovations
• It’s a buyer’s market and many comparable properties are available
• The seller needs to make the sale quickly

Bid at
It’s a good idea to offer the listed price in the following circumstances:

• You love the property
• No major repairs are needed
• It meets all of your needs

Bid above
In a competitive housing market, it may be reasonable to offer above the listed price if the property is:

• Your dream home
• In a desirable area
• Move-in ready

The best way to ensure you make the right offer on a property is to work closely with a real estate agent who understands both the local housing market and your priorities as a buyer.