Tami Savage, Realtor

Your Key to a New Lifestyle

  • Search for Homes
  • Blog
  • About
  • Contact
  • Facebook
  • Instagram
  • LinkedIn
  • YouTube

If You’re a Buyer, Is Offering Asking Price Enough?

September 27, 2021 By Tami Savage

If You’re a Buyer, Is Offering Asking Price Enough?

In today’s real estate market, buyers shouldn’t shop for a home with the expectation they’ll 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 housing market is anything but normal. According to the National Association of Realtors (NAR), homes today are:

  • Receiving an average of  3.8 offers
  • Selling in just 17 days

Homes selling quickly and receiving multiple offers highlights how competitive the housing market is right now. This is due, in large part, to the low supply of homes for sale. Low supply and high demand mean homes often sell for more than the asking price. In some cases, they sell for a lot more. Selma Hepp, Deputy Chief Economist at CoreLogic, explains how these stats can impact buyers:

“The imbalance between robust demand and dismal availability of for-sale homes has led to a continual bidding over asking prices, which reached record levels in recent months. Now, almost 6 in 10 homes listed are selling over the asking price.”

You May Need To Rethink How You Look at a Home’s Asking Price

What does that mean for you? If you’ve found your dream home, 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. In today’s market, the highest bidder often wins the home, much like at an auction.

Currently, the asking price is often the floor of the negotiation rather than the ceiling. 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 your agent 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, appraisal gaps – the gap between the price of your contract and the appraisal for the house – are more frequent.

According to data from CoreLogic:

“Beginning in January 2020, nationally, 7% of purchase transactions had a contract price above the appraisal, but by May 2021, the frequency had increased to 19% of purchase transactions.”

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. Buyers in today’s market need to be prepared for this possibility. 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.

Tagged With: Buying Myths, First Time Home Buyers, For Buyers, Housing Market Updates, Move-Up Buyers

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Free eGuide. Things to Consider When Buying a Home. Send me this eGuide.

Free eGuide. Things to Consider When Selling Your House. Send me this eGuide.

Tags

Baby Boomers Buying Myths Community Demographics Distressed Properties Down Payments Events First Time Home Buyers Forbearances For Buyers Foreclosures For Sale By Owners For Sellers FSBOs Generation X Generation Z Gen Z Holidays Home Design Home Trends Housing Market Updates Infographics Interest Rates Interview Investors Luxury Luxury Home Luxury Market Millennials Move-Up Buyers moving New Construction Pricing relocation Remodel Rent vs Buy Report Reviews Selling Myths Senior Market Short Sales SOLD Tax Refund Veterans Video

About Me

I help homeowners sell their existing home and shift into a home more suitable to their needs in the North Metro Atlanta area (specifically around Cumming, Canton, & Milton). Read More…

Let’s Connect

770-744-2524‬ or
(888) 959-9461 x2543

 

  • Email
  • Facebook
  • Instagram
  • LinkedIn
  • YouTube
If you're following the news, you might be wondering what could happen to the housing market if there's a recession. Let's connect to discuss why history shows a recession doesn't equal a housing crisis.

SOURCES: 
• https://www.corelogic.com/intelligence/corelogic-hpi-posted-record-year-over-year-growth-in-2021/
• https://www.corelogic.com/intelligence/housing-recessions-and-recoveries/
• https://www.thebalance.com/the-history-of-recessions-in-the-united-states-3306011
A Recession Doesn't Equal a Housing Crisis
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_OdOSl6RHDig
Buyers already know higher mortgage rates can increase their monthly payment.

But sellers might be surprised to learn rising rates could impact them, as well.

Watch the video to find out what you should consider if you’ve been waiting to sell your home.

Then contact us today to schedule a free consultation. Whether you want to buy or sell this year, act fast…before rates rise even further!

📲 770-744-2524
☎️ 888-959-9461 x2543
📩  tami@tamisavage.com
How Will Rising Mortgage Rates Impact Home Sellers?
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_bDqmTWZ5YzM
Thinking of Buying or Selling a Home?  The Summer Buyer and Seller Guides are Here.
Go here to request:  https://tamisavage.com/new-summer-2022-buyer-and-seller-guides-are-here/
Thinking of Buying or Selling a Home: The Summer Buyer and Seller Guides are here!!! (Summer 2022)
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_CptLaL_muMQ
Want to better understand how buying a home could be a great investment for you? Let’s connect today.

SOURCE:
• https://news.gallup.com/poll/392330/record-low-say-good-time-buy-house.aspx
More Americans Choose Real Estate as the Best Long Term Investment
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_VznC8C5QzU4
Thinking of Moving Up This Summer?

Here are some features you may want on your wishlist:
• Outdoor entertaining space
• A swimming pool to make a splash
• A quiet place to relax and unwind

Let's connect so you can sell your house and find the home of your dreams.
Thinking of Moving Up This Summer
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_UA7yETbMfBg
If you're thinking of buying or selling a home this year, it's important to know where the market is headed and what that means for you. Let's connect so you have the latest expert insights to help plan your next move.

SOURCES: 
• https://www.mba.org/docs/default-source/research-and-forecasts/forecasts/mortgage-finance-forecast-apr-2022.pdf
https://cdn.nar.realtor/sites/default/files/documents/forecast-q2-2022-us-economic-outlook-04-27-2022.pdf
• https://www.fanniemae.com/media/43346/display
• https://www.freddiemac.com/research/forecast/20220418-quarterly-forecast-purchase-market-will-remain-solid-even-mortgage-rates-rise
• https://pulsenomics.com/surveys/#home-price-expectations
• https://www.corelogic.com/intelligence/u-s-home-price-insights/
• https://www.zelmanassociates.com/
• https://www.marketwatch.com/story/the-pandemic-boom-in-home-sales-is-over-mortgage-rates-soar-to-highest-level-since-2009-as-the-fed-pressures-the-housing-market-11651760108
What's on the Horizon for the Housing Market in the Second Half of 2022?
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_CUfujHdh4lI
There are a number of good reasons you may want to sell your house right now. Let's connect so you have an expert on your side to help you during the process.

SOURCES: 
https://www.reuters.com/business/finance/why-time-is-right-sell-home-us-2022-03-29/ https://www.businessinsider.com/signs-you-should-sell-your-home-2019-7#lifestyle-shifts-are-compelling-you-to-rethink-your-living-space-2
https://blog.firstam.com/economics/why-the-2022-housing-market-is-very-2019
Top Signs Its Time To Sell According to Experts
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_RceP-LLP230
More sellers are expected to list their houses in the months ahead. Let's connect so you have a trusted real estate advisor on your side and can act when your dream home comes to market.

SOURCES: 
https://news.move.com/2022-04-06-New-Realtor-com-R-Survey-Finds-64-of-2022-Sellers-Plan-to-List-by-Summers-End
https://cdn.nar.realtor/sites/default/files/documents/ehs-03-2022-overview-2022-04-20.pdf
Homebuyers You May Have More Options
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_RC4-_HXbNuQ
Right now, the average home for sale is getting more offers than in recent years. Let's connect so we can discuss how you can win when you make a move in today's housing market.

SOURCE: 
https://cdn.nar.realtor/sites/default/files/documents/2022-03-realtors-confidence-index-04-20-2022.pdf
Buyers Are Lining Up To Make an Offer in Todays Housing Market
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_B5vLzgjs3Gc
Load More... Subscribe

Calculate Mortgage Payments

Below is a mortgage calculator you may use to help give you an estimate on your monthly payment and other details.

Once calculated, next to the monthly payment on the far right is a small graphic you can click on to see the payment schedule.

Calculate Mortgage Payments

www.mlcalc.com

eXp Realty

Realtor Stellar MLS Equal Opportunity Housing

Copyright © 2019+ Tami Savage LLC. All Rights Reserved. Privacy Policy

DISCLAIMER: The information contained, and the opinions expressed, on this site are NOT intended to be construed as investment advice. Tami Savage LLC does NOT guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should ALWAYS conduct your own research and due diligence and obtain professional advice before making any investment decision. Tami Savage LLC will NOT be liable for any loss or damage caused by your reliance on the information or opinions contained herein.