The Art of the Offer

Over the past three years, we’ve almost gotten accustomed to expecting bidding wars and homes that sell for well over asking. In fact, for a hot minute there, real estate experts were encouraging would-be buyers to shop well under budget because any ensuing bidding wars would land them at the top of what they could afford. Recent shifts in the market have us now wondering whether the lowball is back. 

This might feel like good news for people still set on buying right now. Even though the national average for list price surged almost 17% this year- to a record setting $449,000- the number of homes with price drops is growing. 

The number of homes with price cuts increased to 19.1% in July of this year, compared with 9.4% at the same time last year.

What does this mean?

Well, in the hot hot hot seller’s market of 2021 when homes were selling in a matter of hours for thousands over asking, having a home sit on the market for any length of time gives some of the power to the buyer. A lot of sellers capitalized on the buying frenzy of the last few years and took advantage of being able to offload their homes (usually for much more than they owed on them). If a home is sitting for weeks and weeks without a buyer and without being taken off this current market, chances are the sellers actually NEED to sell. This means they may be more open to an offer below asking. 

This doesn’t mean to truly lowball in an offensive or unrealistic way. Any real estate agent worth their salt will be able to help coach you through the situation. Unsure of what to offer? Ask their professional opinion. That’s what they’re there for, after all!