Over offer $20K more?

[Katie Huynh]

My cousins are looking for their first home They saw a home they really like. It's 3bd 2 1/2 bath 1770 sqft built 1975 and the seller asking price is $480K. We talked with the seller agent they said there are 2 offers already but they have not reviewed yet.

My cousin has couple days to decide and submit offer. They are afraid they would lose the deal, so they want to offer $500K which is $20k more than asking price.

I want to ask your expertise opinion. Should my cousins over offer $20k for this home? The comps average is the area is around $440K.

[Jamie Derasmo]

Katie, are they working with a real estate agent of their own? That agent would be able to tell them if $500K is a good price for the home, assessing many factors including the home itself and your current market activity. Where are you pulling the comp information from? In this very bare market, multiple homes are going for over asking and over appraisal price. 

There is a lot of information missing from this that could help you talk it out with your cousins. Is this a SF home for themselves, a duplex for them to house hack, or an investment opportunity they plan on renting out? If it's any sort of investment oriented opportunity, they need to consider how much rent they could get from the unit overall. 

Based off this post, I would recommend your cousins work with a real estate agent to help them make a competitive offer.