When making a purchase offer, should you always offer less than the asking price?

The rationale behind the idea that it depends on the situation is grounded in the dynamics of the real estate market and the specifics of each property being considered. Making an offer below the asking price is a common strategy in negotiations, but it is not universally applicable.

In a buyer's market—where there are more homes for sale than buyers—offering less than the asking price may be more acceptable and expected. In contrast, in a seller's market, where demand exceeds supply, offering the full asking price (or even above) might be necessary to secure the property. Additionally, the condition of the home, its location, current market trends, and how long the property has been on the market all play crucial roles in determining an appropriate offer price.

Also, the motivation of the seller is an important factor. If a seller is eager to sell quickly, they might be more willing to accept a lower offer. Conversely, if they are not in a rush, they are likely to reject offers that are below their asking price. Thus, the strategy of offering less than the asking price should always be assessed thoughtfully in light of these factors.