When a homeowner lists his/her house for sale, it is listed with a price. That is the asking price, the amount for which the seller wants to sell the house. However, this is not the same as going to the grocery store where the price on the product is the price you have to pay. With a home sale, the asking price is negotiable.
For example, you are interested in buying a house with the asking price of $180,000. You think that it is a little overpriced since the house needs a bit of work, so you make on offer on the house but only for $173,000. The seller then has to decide if s/he will accept that offer or counteroffer with a higher price. You continue to negotiate until you either agree on price, or one or both of you decide that it just isn’t going to work out.
In some markets or situations, it is better to stick with the asking price or even exceed it. If it is a hot market where homes sell in a matter of days, it probably improves your chances to give a full-priced offer. Also, if someone else is interested in the same house, it helps your offer stand out if it is full-priced or even above the asking price. If you have special circumstances, such as needing a contingency based on the sale of your own home or a later closing date, offering the asking price may help your chances with the seller.
The seller has most likely done some research in coming up with the asking price so that it reflects the value of the home. Use the asking price as a basis for your offer, but don’t think it has to be the final number for the home. You can always offer less and see if the seller is willing to accept it.
