In today’s real estate market, buyers shouldn’t shop for a home with the expectation they will be able to negotiate a lower sales price. In a typical housing market, buyers try to determine how much less than the asking price they can offer and still get the home. From there, the buyer and seller typically negotiate and agree on a revised price somewhere in the middle.
Things are different today
Today’s market is anything but normal. Homes today are receiving an average of 3.8 offers and are selling in just 17 days. Homes are selling quickly due to the low supply of homes for sale. Low supply and high demand mean homes often sell for more than the asking price.
Rethink how you look at a home’s asking price
You need to be realistic about today’s housing market and how that impacts the offer you’ll make. Offering below or even at a home’s asking price may not cut it. If you really love a home, it may ultimately sell for more than the sellers are asking. That’s important to keep in mind as you work with me to craft an offer.
Understand an appraisal gap can happen
Because of today’s home price appreciation and the auction like atmosphere in the selling process, the gap between the price of your contract and the appraisal for house are more frequent. When this happens, your lender won’t loan you more than the home’s appraised value and the seller may ask you to make up the difference out of pocket. Know your budget, know what you can afford, and work with a trusted advisor who can offer expert advice along the way.
Bottom Line
Bidding wars and today’s auction like atmosphere mean buyers need to rethink how they look at the asking price of a home. Let’s connect so you have a trusted real estate professional who can advise you on the current market and help determine what the market value is on your dream home!
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