Key Takeaways:
- In recent years, home-buying has turned into an auction of bids and higher offers than buyers are willing to make.
- As housing prices increase, the asking price is often the very lowest buyers should expect to spend on a home.
- Expert agents will give you great advice, so you can buy a beautiful home while staying in your budget—let Linda Craft & Team help!
Why the Asking Price is Now a Starting Point for Buyers
Home-buying in the 21st century isn’t like what it used to be. Now, with such a low supply of houses on the market and a higher number of potential buyers, buying a house can be difficult.
This can lead many buyers to wonder what the best policies are when making offers on a house. Let’s go over some of the basics of the housing market, and what can impact the amount of money you end up spending on a home.
The average home receives more than one offer
The National Association of Realtors reports that houses receive an average of 3.8 offers and take only 17 days to sell. This means that buyers have to be quick and decisive. We understand how difficult that can be when the listed asking price is the bare minimum that the buyer will pay. In fact, more than half of homes listed end up selling far over the asking price.
However, homes are more affordable now than they were decades ago. And, as surprising as it seems, the National Association of Realtors revealed that housing affordability was higher in March of this year than it was in March of 2020. In fact, nationwide, the South was found to be the second most affordable region.
Understanding appraisals
The gap between what the buyer offers to the seller and what an appraisal ends up quoting can be significant. It can leave the buyer with potentially tens of thousands of dollars to pay without the benefit of a loan.
The uncertainty surrounding appraisals and loans can be overwhelming, but there are more details that may bring comfort. For one, appraisal prices are often closely matched in similar and nearby areas, so they are rarely completely unpredictable.
For sellers, we offer resources for listing your home at an accurate price. If you want to get tips for selling your home, we have you covered! Are you a first time home seller? We have the essential information you need to know. Have you purchased a second property? You might be able to cash in your second home!
Ready to Buy a Home?
With careful planning, as well as awareness of your budget and the local housing market, you can work with our great team to find an affordable home! Linda Craft & Team is ready to help you make the best decisions possible when buying your home.
Call 919-235-0007 if you’re ready to start making your offer!