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.
Things Are Different Today
Today’s housing market is anything but normal. According to
the National Association of Realtors (NAR), the average home that’s sold today:
Receives 4.8 offers
Sells in just 17 days
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
How Does This Impact You When It’s Time To Submit an
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.