If you’re planning to buy a home this season, you’re probably wondering 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 and still get the home. The buyer and seller would then negotiate and typically agree on a revised price somewhere between the buyer’s offer and the home’s initial asking price.
In today’s real estate market, buyers shouldn’t shop for a home with the same expectations.
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 in 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 asking price.
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. However, 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.
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.
Understanding how to approach the asking price of a home and what’s happening in today’s real estate market are critical for buyers. Connect with one of our Don Peterson & Associates REALTORS® so we can work together to create a winning plan for you.