In a competitive sellers’ market, how many offers can you expect on your home? According to the National Association of Realtors, there were nearly five offers for every home sold on average.
While Houston has been steadier than many other major metros in the United States, I found this information more relevant than other surveys in the past few months. Why? Respondents for this particular survey that reported more than five offers on average were in California, Colorado, Georgia, Massachusetts, Utah, Washington, and yes, Texas!
So what does five offers mean to you? Well, just like any other average, potentially a lot…or nothing! After all, if you’re a buyer, you just need one accepted offer. And if you’re selling, you only need one offer that meets your price expectations.
48% of buyers offered above the list price, typically at $10,000
Forty-eight percent of buyers' offers were above the list price. The average was just about three percent (2.9), but that number may be a little inflated as thirteen percent of offers went as high as 10% above the list price!
Typical buyer loses 2 home offers before succeeding 3rd try
According to REALTORS® who reported on the number of offers the buyer previously made (and lost), buyers typically made two offers before a successful third offer. This is another example of why it is so important to set expectations when you are going to complete a real estate transaction. Some buyers might get frustrated and give up after having an offer rejected. Are you ready to make three? If so, you are better prepared to find a new home!
Please know that this survey found 25% of buyers were successful in closing on a home on the first try. I agree with the National Association of Realtors when they say, “working with a REALTOR® who knows local market conditions can help home buyers to make a good offer.”
It’s not bad if you receive less than 5 offers on your home
How many offers can you expect on your home is different than how many offers you NEED on your home. The answer is always ONE!