There will always be a percentage of homes that sell for more than their list price, even if it’s a small number. So it’s no big surprise that in 2005–at the height of the bubble–real estate was moving quickly and for more money. But what might be surprising is that last year, we exceeded the percentage of sales who received more than what they asked for. 50% of sales were for more than asking price! Crazy!
I personally think there’s a few things that go into this number. For starters, we had crazy low inventory for most of the year and there just wasn’t enough homes to fill demand. Buyers were out there scrambling to get their hands on ” The One” and keep it by offering more than the seller was asking. Also, homes prices were moving upwards and selling so fast that comparables used to price the home accordingly were harder to get. From the short time of signing to the listing contract to the time the home went on the market, prices could’ve already increased. But I also noticed a trend used more frequently than perhaps in years past. Some agents employed a strategy of under pricing the home in order to create a bidding war and generating a higher price. While this might not have worked in market landscapes of the past, it worked last year. I distinctly remember seeing a home priced at $900,000 that was the “mother of all wallpaper home” who sold for $1.1 million. All cash.
With this year forecasted to out pace 2o13, I’ll be curious to see what next year looks like. What do you think? Were there other factors at play?
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