For generations, the homebuying process never really changed. The seller would try to estimate the market value of the home and tack on a little extra to give themselves some negotiating room. That figure would become the listing price of the house. Buyers would then try to determine how much less than the full price they could offer and still get the home. The asking price was generally the ceiling of the negotiation. The actual sales price would almost always be somewhat lower than the list price. It was unthinkable to pay more than what the seller was asking.
Today is much different.
The record-low supply of homes for sale coupled with very strong buyer demand is leading to a rise in bidding wars on many homes. Because of this, homes in the Tulsa Metro area today often sell for more than the list price. In some cases, they sell for a lot more.
According to the Home Buyers and Sellers Generational Trends report just released by the National Association of Realtors (NAR), 45% of buyers paid full price or more.
So what does this mean for buyers looking in Bixby OK 74008, Jenks OK 74037, Kiefer OK 74041, Mounds OK 74047, Glenpool OK 74033, and Sapulpa OK 74066. It Means You may need to change the way you look at the asking price of a home.
In this market, if you are looking for a nice house in the Tulsa Metro area, you really can’t shop for a home with the old-school mentality of refusing to pay full price or more for a house.
Because of the shortage of inventory of houses for sale, many homes are actually being offered in an auction-like atmosphere in which the highest bidder wins the home. In an actual auction, the seller of an item agrees to take the highest bid, and many sellers set a reserve price on the item they’re selling. A reserve price is the minimum amount a seller will accept as the winning bid. Now does this happen with every house in Bixby OK 74008, Jenks OK 74037, Kiefer OK 74041, Mounds OK 74047, Glenpool OK 74033, and Sapulpa OK 74066? No, but more often than not when the Tulsa Metro area home has been priced right based on the recent comps and features and has been on the market less than a week the seller will get at or above full price with great terms if there is a real estate professional on the seller’s side.
When navigating a competitive housing market, think of the list price of the house as the reserve price at an auction. It’s the minimum the seller will accept in many cases. Today, the asking price is often becoming the floor of the negotiation rather than the ceiling. Therefore, if you really love a home, know that it may ultimately sell for more than the sellers are asking. So, as you’re navigating the homebuying process, make sure you know your budget, know what you can afford, and work with a top realtor who can help you make all the right moves as you buy a home in the Tulsa Metro area.
Someone who’s more familiar with the housing market of the past than that of today may think offering more for a home than the listing price is foolish. However, frequent and competitive bidding wars are creating an auction-like atmosphere in many real estate transactions. Reach out to me Sabrina Shaw at Homes by Sabrina brokered by RE/MAX T-town so you have the best advice on how to make a competitive offer on a home in our local market.