It Is Reasonable To Pay A Bit More Than Market Value If...


It Is Reasonable To Pay A Bit More Than Market Value If...
By Scott Rogers • August 7, 2024
Most home buyers do not want to pay more than market value for the home they will purchase. If a home is worth $325K in the current market, then they would prefer to pay no more than $325K... and actually, less than $325K would be even better! ;-) But... there can be circumstances where it is reasonable for a buyer to pay more than market value for a home. The two circumstances that most quickly come to mind are... 1. If a house fits this buyer particularly well. If a home buyer is looking for a home in a particular location, with a particular style, with a particular layout... with particular features... or some variation thereof... it's likely that most houses that come on the market don't fit a buyer's particular needs that well. Sometimes, a house will come on the market that fit a buyer perfectly, or nearly perfectly. For such a house, it would be reasonable for that buyer to pay a bit more than market value. 2. If houses that fit this buyer do not become available very often. If a home buyer is looking for homes in this location, in that price range, and with those features... it's possible that multiple homes come on the market each month that fit the bill... and it's also possible that homes only come on the market every few months that fit that description. If houses that fit a buyer's criteria do not come on the market that often, it would be reasonable for that buyer to pay a bit more than market value. So... most of the time a buyer only wants to pay market value for home... but sometimes it is quite reasonable to be willing to pay a bit more. For the home noted above, with an objective market value of $325K... a buyer might be willing to pay $335K if it is an absolutely perfect fit... and a buyer might be willing to pay $345K if it is an absolutely perfect fit AND homes like this only come along every few months or even less frequently. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
Comments (0) or Subscribe