Realtor.com® survey shows that 29% of sellers are boosting listing prices due to market demand.
With more sellers entering the market this year, many are planning to take advantage of this hot housing market to make money on their home sale. Multiple offers, bidding wars and high prices are just the beginning of what sellers expect, according to a new Realtor.com® survey.
This booming market, with homes selling over value and buyer waiving appraisals finds some homeowners selling because they see opportunity to make a profit. Nearly a quarter (24%) cited making a profit in the current market as a reason to list and 13% think they should take advantage of the current seller’s market. As such, 29% are going to ask for more than they think their home is worth.
“Low mortgage rates and a lack of available homes for sale have created a strong seller’s market, and these survey results show that homeowners think that they have the upper hand if they list their home soon,” said George Ratiu, senior economist, Realtor.com. “However, after a year of challenges which kept homeowners from listing their home, we are seeing sellers coming back which should help moderate prices and bring more balance to the housing market over the coming months. For homeowners planning to sell this year, research your local market conditions to ensure that your home’s price reflects neighborhood trends.”
Sky-high home prices: More than sellers paid
With home prices up 17% in just the last year, it’s no wonder that 94% of home sellers expect to get more than what they originally paid when they bought their home. One in 10 sellers expect to get double what they paid for the home, even after boosting listing prices.
More than the set asking price
Due to the prevalence of multiple bids and price escalation clauses, 53% of sellers expect to get their asking price and a noticeable 24% expect to get more than asking. Sixteen percent of sellers expect a bidding war to take place and to have multiple offers to choose from. Some are boosting listing prices expecting the home to sell over value.
Lightning-fast sales with no contingencies
Nationally, homes are selling 41% faster than last year, with the average time on market just 43 days in the U.S. Due to this fast-paced market, 25% of sellers expect to have an offer within a week of listing and 16% expect to get an all-cash offer. Further, 24% don’t expect to pay for any repairs or improvements to the property and 16% expect buyers to waive contingencies such as financing, appraisal or home inspection.
Getting ahead in a hot market
Buyers who want to compete in this competitive housing market can take advantage of resources such as affordability and mortgage calculators to help determine how much house they can afford. Realtor.com® also connects buyers with lenders who can help with mortgage pre-approval. Additionally, consumers can set up alerts so they can find out when a new home that fits their criteria hits the market.
“If you want to be competitive in today’s housing market, it’s important to have all of your finances in order and be ready to move quickly when you find a home you love,” said Rachel Stults, deputy editor, Realtor.com. “A good tip is to get pre-approved before you begin house hunting, and then look at homes under your budget. That way, if you need to offer above asking to be competitive, you can do so without stretching your wallet.”