In Today’s Market, Listing Prices Are Like an Auction’s Reserve Price
For generations, the process of buying and selling a home never really changed. A homeowner would try to estimate the market value of their house, then tack on a little extra to give themselves some negotiating room. That figure would become the listing price. Buyers would then try to determine how much less than the full price they could offer and still get the home. As a result, the listing price was generally the ceiling of the negotiation. The actual sales price would almost always be somewhat lower than what was listed. It was unthinkable to pay more than what the seller was asking.
Today is different.
The record-low supply of homes for sale coupled with very strong buyerdemandis leading to a rise in bidding wars on many homes. Because of this, homes today often sell for more than the list price. In some cases, they sell for a lot more.
According toLawrence Yun,Chief Economistat theNational Association of Realtors(NAR):
“For every listing there are 5.1 offers.Half of the homes are being sold above list price.”
You may need to change the way you look at the asking price of a home.
In this market, you likely can’t shop for a home with the former approach of negotiating to a lower price.
Due to the low supply of houses for sale, many homes are now being offered in an auction-like atmosphere in which the highest bidder wins the home. In an actual auction, the seller of an item agrees to take the highest bid, and many sellers set a reserve price on the item they’re selling. A reserve price is the minimum amount a seller will accept as the winning bid.
When navigating a competitive housing market, think of the list price of the house as the reserve price at an auction. It’s the minimum the seller will accept in many cases. Today, the asking price is often becoming the floor of the negotiation rather than the ceiling. Therefore, if you really love a home, know that it may ultimately sell for more than the sellers are asking. So, as you’re navigating the homebuying process, make sure you know your budget, know what you can afford, and work with a trusted advisor who can help you make all the right moves as you buy a home.
Someone who’s more familiar with the housing market of the past than that of today may think it’s foolish to offer more for a home than the listing price. However, frequent and competitive bidding wars are creating an auction-like atmosphere in many real estate transactions right now. Let’s connect today so you have a trusted real estate professional on your side to provide the best advice on how to make a competitive offer on a home.
Author:Brian Woodhead -Skyline Team Leader Phone: 602-369-0671 Dated: June 8th 2021 Views: 24 About Brian Woodhead: Realtor Designation
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You deserve a Realtor with the Knowledge from these designations. Realtor’s that take the time to earn these designations are the industry leaders and top producers. We care about your real estate purchase and want to give you a level of service and representation that will make you a client for life. Brian Woodhead has all of the following:
MASTERS OF REAL ESTATE SOCIETY-
Membership in the MRE society recognizes an individuals dedication to excellence through professional education and commitment to staying abreast of the latest real estate regulations and practices. Less than one percent of REALTORS in Arizona belong to this Society.
GRI - Graduate, REALTOR® Institute
The Graduate REALTOR® Institute (GRI) symbol is the mark of a real estate professional who has made a commitment to providing a superior level of professional services by earning the GRI designation. REALTORS® with the GRI designation are highly trained in many areas of real estate to better serve and protect their clients.
Why Choose a REALTOR® With a GRI designation?
Buying property is a complex and stressful task. In fact, it's often the biggest single investment you will make in your lifetime. At the same time, real estate transactions have become increasingly complicated.
New technology, laws, procedures and the increasing sophistication of buyers and sellers require real estate practitioners to perform at an ever-increasing level of professionalism.
So it's more important than ever that you work with an agent who has a keen understanding of the real estate business. The GRI program has helped the best and the brightest in the industry achieve that level of understanding.
• Nationally recognized as top performers in the real estate industry
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• Dedicated to bringing you quality service
A GRI can make a difference
When you see the letters "GRI" after an agent's name, you can count on receiving the knowledge and guidance you need to make your transaction go smoothly. In short, you can count on getting the best service available from a real estate professional.
CRS - Certified Residential Specialist
Why a CRS? Today, home buying and selling is faster, more complex, and more competitive in every way. Our goal is to make the process a little easier for you. The first step is choosing the right REALTOR®.
Experience - To earn the Certified Residential Specialist (CRS) Designation, every REALTOR® must have significant experience and volume of real estate transactions.
Ethics - Every CRS Designee is required to maintain membership in the NATIONAL ASSOCIATION OF REALTORS® and to abide by its strict Code of Ethics.
A focus in home buying and selling - To help make the home buying and selling process more rewarding, every CRS Designee must have a proven track record in the business, as well as advanced education in related areas like finance, technology and marketing. Work with the top 5%
Technology Expertise - The training available to CRS Designees includes a strong focus on technology and its applications in the real estate business.
ABR - Accredited Buyer Representative
The Accredited Buyer Representative (ABR) designation is the benchmark of excellence in buyer representation. d designation is awarded by the Real Estate BUYER'S AGENT Council (REBAC), an affiliate of the National Association of REALTORS, to real estate practitioners who meet the specified educational and practical experience criteria. More than one million people in the United States are licensed to sell real estate. Of those licensees, fewer than 2 percent are Accredited Buyer Representatives (ABR).This covete
The New Real Estate Professional must meet the needs and expectations of the Connected Consumer. The rules of business are changing, especially the real estate industry. The e-PRO Certification Program is specifically designed to keep the agent on top of changes and help you meet your goals in the exciting and rewarding world of online real estate.