Pda said:
I like to know is it possible to give an offer below listed price. Lets say seller puts the house over priced and list above market rate can the buyer give offer based on what they think should be market rate.
Hi pda,
Let me present to you a scenario which I think you might be missing...If a house is sold over asking it does not mean house is sold over market price. You might be confused how I am saying this, let me clarify for you - see if the average selling price of a similar house in neighbourhood is suppose 725k then sometimes the real estate agent or seller might plan to list it for 699k to attract more customers because mostly people use filters like maximum price 700k while searching for buying a house so now this house will come in their list and they will most likely like it then the real estate agent will tell the buyer that avg selling price on this street is 725 so it is actually attractively priced this increases the interest of buyer more so he comes to the bidding of that house and if he likes the house too much there are chances he might arrange few extra grands for buying the house at maybe 730k so now when you will know that the house was sold 31k above asking, you will think somebody bought 31k over market price but fact will be that it got sold only 6k over and above the previous sale which I would say is otherwise also normal appreciation between the time of 2 sales. Hope I am able to give you an idea what I am talking about. It is only through using a real estate agent (like me) who will explain you all these factors before or after viewing a particular house and also by spending time digging in each listing for customer's benefit.
Also let me answer your above question, in above scenario if you (buyer) tells his agent to present an offer of 675k against list price of 699k he will most probably tell you that your offer will be out rightly rejected by seller or seller agent BUT if you still want me to present them this offer then Yes you can offer below list price but in case the seller agent is taking multiple offers at a same time chances are you have lost the race even before it started or if by any chance there are no offers there is a chance you might get below list price(which obviously is remote because most people will be listing the property around market price to get maximum bids.
Hope this answers your question you as an buyer can offer any price over as well as lower list price and same way seller can if he wants to list say 50k above avg market price but that can only be analysed by real estate agent because without an agent you(buyer) don't have access to all info like last sales on same street.