How Much Over Asking Should I Offer on Long Island? My Buyer Paid $55K Over and Still Got a Deal
By Moataz “Mo” Elshamy, Licensed Real Estate Associate Broker and Accredited Buyer’s Representative (ABR), Integrity Core Realty · Last updated October 28, 2026
One of my buyers lost seven houses on Long Island. Every time, he was outbid by $10,000 or less. Then he paid $55,000 over asking for the next one, and it was the best deal he could have made.
Both of those facts are true, and together they answer the question most buyers ask me right before they write an offer: how much over asking should I go?
The honest answer is that the asking price is the wrong number to start from. Here is the number I start from instead, what overbidding really costs you per month, and the point where I tell my own buyers to stop.
Mo’s quick answer: There is no standard percentage over asking on Long Island. Base your offer on what the home is actually worth from recent comparable sales, not on the list price. Some homes are priced low to start a bidding war and are worth well over asking. Others are overpriced and worth less. Set a value range and a ceiling before you offer, know how much cash you can put toward an appraisal gap, and remember that terms like financing strength and closing date often beat a slightly higher price.
Is It Normal to Pay Over Asking on Long Island Right Now?
Yes, but less automatically than it was. An analysis of Nassau County sales by a Long Island appraisal firm found that about 40.5% of homes sold above asking in the first five months of 2026, down from roughly 44% in 2025. Over the same stretch, the share selling below asking rose to about 48%.
So on any given Long Island house, you might be in a bidding war, or you might be negotiating the price down. The Nassau median sale price was about $825,000 in the second quarter of 2026, which means even a “small” percentage over asking is real money.
That split is exactly why a fixed rule like “offer 5% over” fails. It overpays on the overpriced house and still loses the underpriced one.
Why the Asking Price Is the Wrong Starting Point
Listing agents price homes for different reasons. Before I let a buyer write a number, I figure out which of these we are looking at:
Priced to spark a bidding war
Listed below what the comps support so it pulls a crowd in the first weekend. Offering “a little over asking” here usually loses.
Priced at market
The list price lines up with recent sales. Terms and presentation often decide it more than an extra few thousand dollars.
Priced to “test the market”
Above what the comps support. Days on market and price history tell the story. Paying asking here can mean overpaying.
I look at closed sales, not active listings, adjusted for condition, layout, lot, and updates. Then I check the home’s price history and how long it has been sitting. That gives my buyer a value range and a ceiling before we ever talk about the asking price.
What Does Going Over Asking Really Cost Per Month?
Buyers lose houses over amounts that feel huge in the moment and turn out to be small once you spread them over a 30-year loan. Here is the math, assuming the extra amount is financed at a 7% interest rate for 30 years:
| Extra amount you offer | Added monthly payment (principal and interest) | What it feels like |
|---|---|---|
| $5,000 | About $33 | A tank of gas |
| $10,000 | About $67 | Dinner out for two |
| $25,000 | About $166 | A real line item in your budget |
| $50,000 | About $333 | Needs to be justified by value |
Property taxes and insurance are separate, and your lender will give you exact figures. The point is not that overpaying is fine. The point is that losing the right house to save $67 a month is often the more expensive mistake, because you keep paying rent while prices keep moving.
Two numbers can cost you much more than the monthly payment:
- The appraisal gap. Your lender lends based on the appraised value. If you offer $40,000 over asking and the home appraises at the asking price, that $40,000 usually has to come from your own cash, on top of your down payment and closing costs.
- The $1 million line. In New York, a buyer pays a 1% “mansion tax” on the full price of a home that sells for $1,000,000 or more. Offer $1,005,000 on a house listed at $975,000 and that extra $30,000 also adds about $10,050 in tax. If a home is close to that line, your ceiling should account for it.
From My Experience: He Lost Seven Houses, Then Paid $55,000 Over Asking
The buyer who kept trying to save $10,000
Let’s call him Daniel. He kept offering a little under what the houses were worth, and he lost seven of them, each time by $10,000 or less. After the seventh one, even his wife had had enough.
On the next house, he finally let me set the number. It was listed at $785,000. From the closed sales, I valued it between $825,000 and $875,000. In other words, the asking price was bait for a bidding war.
We offered $840,000. Two other offers came in higher: $850,000 and $865,000. We still won, for two reasons.
First, the homeowners were going through a family situation and needed time, so we gave them the flexible closing they needed, about three months. We kept the inspection in the offer, and I presented it in person. Second, at the showing, Daniel genuinely admired the homeowners’ original paintings and told them so. That one conversation is why they asked to meet us.
He paid $55,000 over asking, $25,000 less than the top offer, and still landed at the low end of the home’s real value. Over asking was never the problem. Offering under value was.
When Paying Under Asking Is the Smart Move
The same method works in the other direction. Another buyer of mine bought a Nassau County home priced just over $1 million for $80,000 under asking, at a time when rates had scared most buyers off. We still beat a few other offers with clean terms and a closing date that worked for the homeowner.
And sometimes the answer is to not buy at all. I had buyers fall in love with a brick Tudor priced about $70,000 to $80,000 above what I thought it was worth. The listing agent hinted that other buyers would skip the inspection. On the second showing I found signs of termite damage and structural problems in the basement. I told them to walk away. They bought another home later, and they have since sent me five referrals.
How Do You Win Without Being the Highest Offer?
Sellers on Long Island don’t just compare prices. They compare risk. The offer that is most likely to actually close on time often wins. Here is what has won deals for my buyers when they were not the highest number:
- Lender pre-commitment instead of a basic pre-approval. One family I worked with had already lost their dream house by $5,000. On a later house that had fallen out of contract over another buyer’s financing, we used a lender pre-commitment (file already through underwriting) and a 30-day close, and won while offering $10,000 less than another buyer.
- Cash, or a cleaner financing picture. In Floral Park, my cash buyer offered $725,000 against a $750,000 financed offer. No mortgage, no appraisal, an inspection for peace of mind only, and a two-week close. The homeowner took the lower cash offer.
- A closing date built around the seller’s life. Someone who needs to sell and buy at the same time, or who is dealing with a family situation, may value timing over the last $10,000.
- A realistic inspection. Keep the inspection for major issues like structure, water, and termites. Skip the nitpicking. Sellers can tell the difference.
- An attorney and lender who are ready to move. In New York, the deal isn’t binding until the attorneys have a signed contract. A seller will favor the buyer whose team won’t slow that down.
- A real presentation. Whenever I can, I present offers in person, with context, not just as an email attachment.
Should You Use an Escalation Clause in New York?
An escalation clause says you will beat any higher offer by a set amount, up to a maximum. They are allowed in New York, and the New York State Association of REALTORS® has written about how licensees should handle them. But they come with real trade-offs:
- They show the seller your maximum, which can become the price.
- Some sellers and listing agents won’t accept them and ask for one clean “highest and best” number instead.
- The wording has to be drafted carefully. Your real estate attorney should review it.
In my experience on Long Island, competitive sales are usually decided in a highest-and-best round, so a clean number with strong terms is usually the more practical path. Either way, it only works if you already know your ceiling.
Myth vs. Fact
“Never pay over asking. If you do, you overpaid.”
Many Long Island homes are priced below value on purpose. My buyer paid $55,000 over asking and still bought at the low end of what the house was worth.
“The highest offer always wins.”
Sellers weigh certainty, timing and risk. I’ve won with offers $10,000 and $25,000 below the top number.
Common Mistakes Buyers Make With Offers Over Asking
- Picking a percentage instead of a value. “5% over” means nothing without comps.
- Forgetting the appraisal gap. Know how much cash you can put toward it before you offer, not after the appraisal comes in.
- Bidding to your maximum approval. Buy the payment you can live with, not the bank’s highest number.
- Waiving the inspection to look stronger. I’d rather lose a house than let a buyer inherit a structural or termite problem.
- Getting emotional in round two. The ceiling is set before the bidding starts, while everyone is calm.
Mo’s Offer Framework
- Value range: what the closed comps say the home is worth, adjusted for condition.
- Pricing read: priced to start a bidding war, priced at market, or overpriced.
- Your ceiling: the highest price that still makes sense for value, your monthly payment, and the cash you can put toward an appraisal gap.
- Terms: financing strength, closing date, inspection terms, and a ready attorney.
- Presentation: the seller hears why your offer is the safest one on the table.
- Walk-away point: if the bidding passes the ceiling, you let it go. There will be another house.
Frequently Asked Questions
How much over asking do Long Island homes usually sell for?
There is no typical amount. In Nassau County, about 40% of homes sold above asking in early 2026 while about 48% sold below. The amount over asking depends on whether the home was priced below, at, or above its real value.
Is offering 5% or 10% over asking a good rule?
No. A fixed percentage ignores value. On an underpriced home it may still lose, and on an overpriced home it can mean overpaying. Start from comparable sales instead.
What happens if I offer over asking and the appraisal comes in low?
Your lender bases the loan on the appraised value, so you usually have to cover the difference in cash, renegotiate, or rely on whatever your contract allows. Plan for this before you offer and review it with your attorney and lender.
What does “highest and best” mean?
The listing agent asks every buyer to submit their strongest price and terms by a deadline, usually with no further negotiation. Treat it as your final offer, built on your ceiling, not a bargaining round.
Should I use an escalation clause in New York?
It is allowed, but it reveals your maximum and some sellers won’t accept one. Have your real estate attorney review the wording, and know your ceiling first.
Can the seller take another offer after accepting mine?
In New York, an accepted offer usually isn’t binding until both sides sign the contract prepared by the attorneys. Until then, a seller can still consider other offers, which is why a fast, ready team matters.
Does a cash offer beat a higher financed offer?
Often, yes, because cash removes appraisal and mortgage risk. I’ve seen a $725,000 cash offer win over $750,000 financed. A strong financed offer with a lender pre-commitment can compete too.
Should I waive the home inspection to win?
I don’t recommend it. Keep the inspection for major issues like structure, water and termites, and skip the small requests. That keeps you protected and still competitive.
Mo’s Bottom Line
“How much over asking?” is the wrong question. The right one is “What is this house worth, and what is my ceiling?” Answer that first, and you’ll know when to go $55,000 over, when to offer $80,000 under, and when to walk away.
Bidding on a Long Island Home Right Now?
If you’re serious about buying, fill out my Home Buying Strategy Brief. I’ll look at your numbers and the homes you’re considering, and give you a value range and a ceiling. If a house isn’t worth chasing, I’ll tell you that too.
Get My Home Buying Strategy Brief Book a Buyer ConsultationMoataz “Mo” Elshamy, Mo The Realtor, is a Licensed Real Estate Associate Broker with Integrity Core Realty in Jericho, NY, serving Long Island and Queens. He is an Accredited Buyer’s Representative (ABR) with a degree in accounting and a background in finance and sales. Read his client reviews.
Sources: DMA Appraisers, Nassau County Housing Market Update, June 2026; DMA Appraisers, Nassau County Housing Market Trends, May 2026; PropertyShark, Nassau County Housing Market Trends; New York State REALTOR, “Ceiling Unlimited” (escalation clauses). Monthly payment figures are estimates at a 7% fixed rate over 30 years, principal and interest only. Client stories are real, with names and identifying details changed.
This article is general information, not legal, tax, or financial advice. Market conditions change, and every property and contract is different. Consult your real estate attorney, lender, and tax advisor about your specific situation. Past results don’t guarantee future outcomes.
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