These types of homes are selling WAY over the asking price... (2024)

FAQs

What makes a home sell over asking price? ›

Curb appeal

First impressions matter. Enhancing your home's curb appeal can be a game-changer when selling over the asking price. Invest in landscaping, including well-maintained gardens, colorful plants, and a neatly trimmed lawn. Update the exterior with fresh paint, modern light fixtures, and an inviting entryway.

The bidding wars are prompting some buyers to offer more than the list price, too. More than half—58%—of real estate pros say the majority of their clients are putting in offers above the asking price.

There are circ*mstances when it's possible for an offer below the asking price to be accepted. This usually occurs in a buyer's market, especially when a property has been on the market for a long time.

The asking price – also referred to as a listing price or list price – is the amount of money a seller would like to receive for their home. The seller and their real estate agent come up with the asking price as a starting point for potential buyers.

You certainly don't want to take a loss on your property if you can avoid it. A home seller can always reject an offer that they don't think reflects the value of their real property. Even if the offer is above the listing price, the seller has the legal right to deny the offer and accept a higher sale price.

For example, offering more than the asking price may result in winning a bidding war more quickly. But on the flip side, it likely also means paying more for a home than its actual value.

SoCal's hot real estate market

Experts say low mortgage rates and people's desire to own more space is driving a pandemic housing boom. LOS ANGELES - Three out of the top five cities in the United States where homes are being sold over list price more than any other metro are in California, according to a new study.

The amount you may want to reduce your home's asking price depends on many factors, including the median price in your area, what comparable homes nearby are selling for and the length of time the home has been on the market. According to a Zillow study, the average price cut is 2.9 percent of the list price.

Cash house buyers usually offer less, often 10–25% below market value, as they provide a quicker, more streamlined selling process devoid of mortgage hassles. The lowered offer mirrors the reduced risk, less paperwork, rapid closure, and convenience they bring forth.

Probably not a good idea to go in with a lowball offer $50,000 below asking price. A whole year on the market, with price reductions? Go ahead and roll the dice. The longer a house has been on the market, the less of an upper hand the seller has in negotiation.”

Can you offer 20k less on a house? ›

To make a significantly lower offer of 20% or more, you have to be in a buyer's market where there are many more houses for sale than buyers. If a home won't sell after six or more months on the market, that's a sign it's a good time to strike with an offer this low.

You need to determine how much you can afford to spend on a house that you may have fallen in love with or is in an area where you want to live — or both! If this is The One, then you will want to make a house offer that is at least near the asking price — perhaps within 5 percent to 10 percent.

When you buy a home, the seller you're buying from will probably expect you to negotiate the asking price. In fact, most sellers price their homes a bit higher than market value to compensate for negotiations.

Understanding Bid Prices. The bid price is the amount of money a buyer is willing to pay for a security. It is contrasted with the sell (ask or offer) price, which is the amount a seller is willing to sell a security for. The difference between these two prices is referred to as the spread.

In a bidding war, some buyers offer between 1% – 3% over asking to make their offers stand out. Other buyers rely on their real estate agent to gather intel on the other bids on the property, then top the highest bid by a few thousand dollars.

All the interest from potential buyers might sway him to ask for a new, higher price. If that's the case, the seller will likely counter with an amount higher than your offer. If the seller does prefer your offer but is hoping you can match another buyer's offer, he might counter for a higher price.

He adds that offers typically need to exceed at least 1 to 3 percent over the list price when there are multiple competing buyers. On particularly competitive homes, an offer could come in far above the 1-3% threshold.

Know the two hot spots

The rooms buyers most closely inspect (and judge) in a house are the kitchen and master bath. These are the interior spaces where the most value can be added during a sale, so they need to look their best.