If you’re planning on buying a home this sping and/or summer, you’re likely thinking about what you will need to do to get your offer accepted in this sellers market. During a buyers market, it was more common to try and determine how much less than the asking price you could offer to still get the home. Then you and seller would negotiate and hope to agree on a price that was somewhere between your offer and the seller’s initial asking price.
How is the Market Today
Today’s housing market is anything but normal. According to the National Association of Realtors (NAR), the national 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, but locally I have seen a change in that trend. There are still more buyers on the market than homes for sale, however we have seen more homes come on market lately giving buyers more choices. Interest rates have impacted buyers price points and, in some cases, buyers have elected to sit this market out.
How Does This Impact You When It’s Time To Submit an Offer?
Understanding local market conditions will help guide your decisions throughout the process. Often (but not always), the asking price of a home is the floor of the negotiation rather than the ceiling. Knowing this is important when you would like 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’re planning on spending. Locally, I have seen many homes only get one or two offers or none at all, so I always suggest making the offer if the home speaks to you.
If you’re looking to purchase a home in a competitive market, The Mortgage Reports has this to say:
“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.
A real estate professional like myself will draw from my experience and expert-level knowledge of today’s housing market throughout the process. I have strategies that win in a competitive market!
Understanding how to approach the asking price of a home and what’s happening in today’s real estate market are critical for buyers. Partner with me to create a winning plan for you.