Should You Pay More Than the Asking Price – Why There's No Need

Written by: Lorraine
You Don’t Need To Offer More than Asking Price for a Home When demand outstrips supply, typically, the seller is in a position to quote their price. Also typically there are more people vying for limited goods and services, which means that they are tempted to offer more than the asking price. This is something […]
Published on October 21, 2022
Last update: ago
Est. Reading: 2 minutes
You Don’t Need To Offer More than Asking Price for a Home

When demand outstrips supply, typically, the seller is in a position to quote their price. Also typically there are more people vying for limited goods and services, which means that they are tempted to offer more than the asking price. This is something that investors ask me as well – should they offer more than the asking price? The short answer is no – this is very rarely necessary. I will explain why.

The Remote Control Retirement Riches formula.

I have four words for you: Remote Control Retirement Riches. My team and I have everything in place for investors. Firstly, I suggest that you use the 30-year fixed-rate loan – it is a simply unbeatable tool for creating future financial security if not actual wealth. Secondly, invest in brand new single-family homes in the larger metro areas where couples and families are looking to live. Our team has created networks with all the relevant contacts: brokers, builders, property managers, financers, and other agencies that would be involved in a real estate purchase.
So, even when demand outstrips supply, we are able to negotiate the best prices. This is because we have the sheer force of numbers with us – quite simply we have a far better bargaining position. As an investor, you don’t have to deal with the hassle of negotiating or asking for more inclusions and so on. With our network and contacts, all this is done for you. Your job is the most difficult one – you do nothing!

Why is the scenario a little different right now?

With the pandemic disrupting supply chains, creating labor problems and delays, there was an actual shortage of availability of new homes in the market. Since lumber and other building supplies have also become more expensive, I have seen instances of builders revising the asking price in some cases. Builders have been facing difficult times and they end up having to do this. To be fair they do also offer a refund of the deposit amount to those investors who are unwilling or unable to agree to the higher revised price.
However, in all my 40 years as an investor, I have never or very rarely seen this happen. My team would typically do all of the negotiations and have everything in place for investors. Right now, with interest rates much higher, these phenomena are subsiding considerably. 
If you would like to know more about the Remote Control Retirement Riches formula, drop us a line. We will also be discussing the market situation that we see right now, where demand is higher than supply, and what prudent investors should be doing, in our upcoming expo. You can register for free here for our online property expo which is designed for savvy investors looking to secure their financial future. 
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