Buyers, take note. Some sellers are using more than the amount and conditions of your offer to decide if they should accept it or not.
A competitive real estate market is apparently getting more competitive.
According to a recent study by Coldwell Banker Real Estate, sellers are seeing multiple offers some of which are above asking price. Home are also selling more quickly. The right home, in the right neighborhood, at the right price may have just become more difficult to buy.
If that wasn’t enough, the survey also showed that more sellers are basing their decision on whether to accept an offer on emotion more than on money.
Before you think all is lost, let’s look at the numbers and figure out what this means for you.
The survey says!
The survey looked at very specific time lines:
- 2005 and earlier – pre-housing bubble
- 2006 – 2007 – housing bubble
- 2008 – 2009 – recession years
- 2010 – 2013 – recovery years
- 2014 – 2015 – current market
1500 home sellers were surveyed and the results are interesting and something for buyers to think about.
- 28% said their home sold in less than 2 weeks
- In 2005, 15% said the same
- During the recession, 25% sold their home as quickly
- 47% received multiple offers
- In 2010-2013, 40% of sellers received multiple offers
- Surprisingly, 48% said the same in 2008 and 2009
- 27% received offers above their asking price
- During the recession years, that number was at 14%, not surprising at all
- From 2010 to 2013, that number was 28%
- 46% of sellers took the first offer they received
- Down from 59% in 2008-2009 and 58% in 2010-2013
- 36% of sellers stated their decision was based more on emotion than on the money
- This is the highest recorded number since the survey began
- Between 2010 and 2013, only 27% said the same
- During the recession years, 24% made the same decision
What does this mean?
For sellers, when you’re home is at the right price for your market and the condition of your home, you have a greater chance of a quick sale, multiple offers, and options among your choice of offers. There’s no guarantee that you’ll experience all of these factors, but it is possible.
For buyers, things are a bit trickier. If you want the beautiful home in the perfect neighborhood at the just-right asking price, you’ll most likely have competition. You’ll need to bring your best offer to the table and possibly allow the sellers to see your human side. Don’t be afraid to hold back on why you love this listing so much or why it’s perfect for your family. Your Realtor will make sure the other agent knows so that they can share it with the sellers.
Whether you’re buying or selling, your Realtor can guide you through the process and explain market values to you.
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