24% of home sellers expect to receive more than their asking price

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It can’t be right now good time to buy a house… Though mortgage rates very competitive, home prices are grossly overpriced because there are not many products to be found.

But while today’s real estate market can be challenging for buyers, it is great for sellers. In fact,

According to a recent poll by Realtor.com, 53% of sellers expect them to receive their asking price once they put a home on the market. Meanwhile, 24% expect the price to be higher than the asking price.

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Why are houses being sold at prices higher than asking prices?

In the normal housing market, you may sometimes come across bidding warwhen two or more buyers are selling the same home, thus increasing its sale price. But in today’s housing market record low stock levels makes the war of bidding more mainstay. In fact, about 20% of sellers expect a tender war to start in their home.

Not only do bidding wars drive home prices up, but many potential buyers prefer make a home offer this is above the asking price of the seller in an attempt to avoid a bidding war. And if you found it difficult to get the proposal accepted, you can try this tactic too.

Imagine a home is being sold for $ 300,000. In a bidding war, home prices could eventually rise to $ 350,000 if competing buyers continue to increase their bids by $ 5,000 or $ 10,000 in an attempt to win.

Now, suppose you are interested in a $ 300,000 home and decide to make an initial offer of $ 320,000 or $ 20,000 in excess of the asking price. The seller may be so pleased with this offer that he decides to accept it right away and deliver the house under contract. This, in turn, can save you money on that home – even if you do end up paying more than what is listed.

In fact, some sellers in today’s market may slightly undervalue their homes in an attempt to unleash a trade war. But again, offering a higher price than you ask for can be good for you as a buyer.

How much should you offer for a house?

A transaction above the asking price of the home may result in a contract. But be careful – don’t overdo it.

First of all, the higher the price you pay for your home, the higher your mortgage payments will be. Also, if the home you are buying is not evaluate due to its selling price, you will not be able to get the mortgage needed to finance this home.

In today’s hot housing market, sellers clearly have an edge, and their confidence is evident. Bidding above the asking price can help keep the home you want out of the bidding war. And that, in turn, can save you not only a lot of money, but a whole world of stress.

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