Is It Enough To Offer Asking Price in Today’s Housing Market?
If you’re planning to buy a home this season, you’re probably thinking about what you’ll need to do to get your offer accepted. In previous years, it was common for buyers to try and determine how much less than the asking price they could offer to still get the home. The buyer and seller would then negotiate and typically agree on a revised price that was somewhere between the buyer’s bid and the home’s initial asking price.
In today’s real estate market, buyers shouldn’t shop for a home with the same expectations.
Today’s housing market is anything but normal. According to the National Association of Realtors (NAR), the average home that’s sold today:
Homes selling quickly and receiving multiple offers shows how competitive the housing market is for buyers right now. This is because there are more buyers on the market than homes for sale. When the number of homes available can’t keep up with demand, homes often sell for more than the asking price.
Market conditions should help guide your decisions throughout the process. Today, the asking price of a home is often the floor of the negotiation rather than the ceiling. Knowing this is important when it’s time to submit an offer, but you should also use that information as you’re searching for homes too. After all, you don’t want to fall in love with a home that ultimately sells for a price higher than what you’ve budgeted for.
The Mortgage Reports has advice if you’re looking to purchase a home in a competitive market. The article encourages you to be realistic with your housing search, saying:
“The best thing to do is set your budget and expectations ahead of time so you know how much you can afford to offer — and when to walk away. This will make negotiations a lot easier.”
Of course, when you’ve found your dream home, you’ll want to do everything you can to submit your best offer up front and win a potential bidding war. Knowing the current market is key to crafting a winning offer. That’s where working with an expert real estate advisor becomes critical.
A real estate professional will draw from their experience and expert-level knowledge of today’s housing market throughout the process. They’ll also balance conditions in your area to make sure your offer stands out above the rest.
Understanding how to approach the asking price of a home and what’s happening in today’s real estate market are critical for buyers. Let’s connect so we can work together to create a winning plan for you.
Stay up to date on the latest real estate trends.
The single-family home market is on fire in San Francisco right now, as the median sale price for a single-family home is reaching the highest level it’s reached in th… Read more
It’ll be important to pay attention to how this market evolves over the seasonally slow winter months, as dwindling inventories might drive prices up over time.
Last month we saw a big upward swing in median sale prices for single-family homes in San Francisco.
Listings are spending a lot more time on the market than they were last year, with single-family listings spending more than 20% longer on the market.
While much of the Bay Area is experiencing inventory issues, the vast majority of areas are seeing inventories begin to pile up. As we know, San Francisco has the oppo… Read more
Median sale prices in the East Bay have fallen for six months straight.
RSVP Below for Webinar Link | Join Us on 9/10 @ 5:30PM for a 1-Hour First-Time Homebuyer Webinar to Learn What it Takes to Buy a Home & More!
Single-family home median sale prices rose by 4.42% on a year-over-year basis, while condo median sale prices rose by 10.52%. Additionally, the average single-family h… Read more
Single-family inventory levels are 20.05% higher on a year-over-year basis, and condo inventory levels are 13.15% higher.
You’ve got questions and we can’t wait to answer them.