How does the housing market affect an offer?
- Seller’s market: There’s low housing inventory and many buyers competing for only a few listings. In these situations, houses can sometimes sell for more than the asking price as buyers submit more generous offers in hopes to have theirs accepted.
- Buyer’s market: There’s greater housing inventory compared to demand. This situation can give homebuyers a little more flexibility in terms of offer price and negotiating.
In general, areas with healthy economies and more jobs tend to be seller’s markets, while those with struggling economies tend to be buyer’s markets. The real estate market also has a seasonal pattern, with more homes for sale in the summer and more buyers, and fewer homes for sale in the winter and fewer buyers.
Depending on the region, area, or even neighborhood, housing markets can shift quickly. Partnering with an experienced realtor can help you understand how competitive the local housing market is and what to expect when finalizing an offer.
Buyer: How much should you offer on a house?
Other things that can affect the amount you offer on a house include: how long it’s been on the market, the condition of the house and property, and how motivated the seller is.
If you have multiple favorites and would be happy with any of them, making an offer on more than one home could be an option. Be mindful that when you make an offer, you generally need to include an earnest money deposit to show that your offer is serious. Once a seller accepts your offer, the earnest money is deposited into an escrow account to be added toward your down payment.