CLIENT LOG IN

Margo Borkin

Persistent Perserverance, Consistent Results

248-419-3160
Cell: 248-318-4776
Fax: 248-419-0930
margo@movewithmargo.com
  • Menu
  • Home
  • About
    • About Margo Borkin
    • Client Reviews
    • Margo Vs The Market
    • Professional Resume
  • Communities
    • Berkley
    • Beverly Hills
    • Bingham Farms
    • Birmingham
    • Bloomfield Hills
    • Bloomfield Township
    • Commerce Township
    • Farmigton
    • Farmington Hills
    • Ferndale
    • Franklin
    • Huntington Woods
    • Keego Harbor
    • Novi
    • Oak Park
    • Orchard Lake
    • Royal Oak
    • Southfield
    • Sylvan Lake
    • Walled Lake
    • Waterford
    • West Bloomfield
    • White Lake
    • Wixom
    • Wolverine Lake
  • Property Search
    • Address Search
    • Basic Search
    • Advanced Search
    • Map Search
  • Home Buyers
  • Home Sellers
  • Blog
  • Contact

In Today’s Market, Listing Prices Are Like an Auction’s Reserve Price

In Today’s Market, Listing Prices Are Like an Auction’s Reserve Price | Simplifying The Market

For generations, the process of buying and selling a home never really changed. A homeowner would try to estimate the market value of their house, then tack on a little extra to give themselves some negotiating room. That figure would become the listing price. Buyers would then try to determine how much less than the full price they could offer and still get the home. As a result, the listing price was generally the ceiling of the negotiation. The actual sales price would almost always be somewhat lower than what was listed. It was unthinkable to pay more than what the seller was asking.

Today is 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 today often sell for more than the list price. In some cases, they sell for a lot more.

According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR):

“For every listing there are 5.1 offers. Half of the homes are being sold above list price.”

You may need to change the way you look at the asking price of a home.

In this market, you likely can’t shop for a home with the former approach of negotiating to a lower price.

Due to the low supply of houses for sale, many homes are now 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.

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 trusted advisor who can help you make all the right moves as you buy a home.

Bottom Line

Someone who’s more familiar with the housing market of the past than that of today may think it’s foolish to offer more for a home than the listing price. However, frequent and competitive bidding wars are creating an auction-like atmosphere in many real estate transactions right now. Let’s connect today so you have a trusted real estate professional on your side to provide the best advice on how to make a competitive offer on a home.


Source: KMC

Posted in: Buying Myths, For Buyers, Pricing Tagged: Real Estate

© Margo Borkin Real Estate 2010

Post navigation

« Why You May Want To Cash in on Your Second Home
Home Price Appreciation Is as Simple as Supply and Demand »

Facebook

Comments Box SVG iconsUsed for the like, share, comment, and reaction icons
Margo Borkin Real Estate
3 weeks ago
Margo Borkin Real Estate

8740 Wise Rd Commerce Twp.
4 Bedrooms
2 Baths
1682 SqFt
.61 Acres
Stop by and see for yourself!
... See MoreSee Less

Message Page

8740 Wise Rd Commerce Twp.
4 Bedrooms
2 Baths
1682 SqFt
.61 Acres
Stop by and see for yourself!
View on Facebook
· Share
Share on Facebook Share on Twitter Share on Linked In Share by Email
View Comments
  • Likes: 0
  • Shares: 0
  • Comments: 0

Comment on Facebook

Margo Borkin Real Estate
1 month ago
Margo Borkin Real Estate

Join me this Sunday from 2-4pm at 6135 Anne in West Bloomfield for an open house tour! ... See MoreSee Less

Message Page

Join me this Sunday from 2-4pm at 6135 Anne in West Bloomfield for an open house tour!
View on Facebook
· Share
Share on Facebook Share on Twitter Share on Linked In Share by Email
View Comments
  • Likes: 9
  • Shares: 1
  • Comments: 0

Comment on Facebook

Margo Borkin Real Estate
2 months ago
Margo Borkin Real Estate

... See MoreSee Less

View on Facebook
· Share
Share on Facebook Share on Twitter Share on Linked In Share by Email
View Comments
  • Likes: 1
  • Shares: 0
  • Comments: 0

Comment on Facebook

Margo Borkin Real Estate
2 months ago
Margo Borkin Real Estate

... See MoreSee Less

View on Facebook
· Share
Share on Facebook Share on Twitter Share on Linked In Share by Email
View Comments
  • Likes: 0
  • Shares: 0
  • Comments: 0

Comment on Facebook

Margo Borkin Real Estate
3 months ago
Margo Borkin Real Estate

Ahhh, spring is here, and with it longer days, warmer temps, and a return to outdoor living. Yesss! Spring also means it’s also time to give that home sweet home a serious once over. To help, here’s an April home maintenance checklist to get you started:⁣
⁣
Declutter, declutter, declutter. Yep, I’m beating that drum…again. You didn't think I’d have a home maintenance checklist without decluttering as numero uno, did you?⁣

Replace air filters and schedule a maintenance check of your cooling system to ensure it’s ready for the steamy months ahead.⁣

Wash windows and doors, and don’t forget your porches. Clean out corner cobwebs and spruce up your front porch or stoop with a colorful wreath, a cutesy welcome mat, and stately planters.⁣

Clean and organize your garage; while you're at it, go on and rinse out your trash cans and recycling bins.⁣

Rent or borrow a pressure washer to give your siding, sidewalk, and driveway a fresh look. Check for widening cracks and chipped paint as you go, making a note to come back and address them later.⁣

Clean and repair your gutters and downspouts to ensure they’re in prime condition for spring downpours.⁣

Test your sprinkler or irrigation system and give that lawnmower a good ole crank. (Trust me, your grass will thank you later!)⁣

Clear brush and fallen limbs away from the house and clean out your beds to make room for spring color.⁣
⁣
Join me in rolling out the welcome mat for the easy, breezy season ahead!⁣
... See MoreSee Less

Ahhh, spring is here, and with it longer days, warmer temps, and a return to outdoor living. Yesss! Spring also means it’s also time to give that home sweet home a serious once over. To help, here’s an April home maintenance checklist to get you started:⁣
⁣
Declutter, declutter, declutter. Yep, I’m beating that drum…again. You didnt think I’d have a home maintenance checklist without decluttering as numero uno, did you?⁣

Replace air filters and schedule a maintenance check of your cooling system to ensure it’s ready for the steamy months ahead.⁣

Wash windows and doors, and don’t forget your porches. Clean out corner cobwebs and spruce up your front porch or stoop with a colorful wreath, a cutesy welcome mat, and stately planters.⁣

Clean and organize your garage; while youre at it, go on and rinse out your trash cans and recycling bins.⁣

Rent or borrow a pressure washer to give your siding, sidewalk, and driveway a fresh look. Check for widening cracks and chipped paint as you go, making a note to come back and address them later.⁣

Clean and repair your gutters and downspouts to ensure they’re in prime condition for spring downpours.⁣

Test your sprinkler or irrigation system and give that lawnmower a good ole crank. (Trust me, your grass will thank you later!)⁣

Clear brush and fallen limbs away from the house and clean out your beds to make room for spring color.⁣
⁣
Join me in rolling out the welcome mat for the easy, breezy season ahead!⁣
View on Facebook
· Share
Share on Facebook Share on Twitter Share on Linked In Share by Email
View Comments
  • Likes: 0
  • Shares: 0
  • Comments: 0

Comment on Facebook

Load more

Blog by Category

  • Baby Boomers (25)
  • Buying Myths (108)
  • Demographics (38)
  • Distressed Properties (15)
  • Down Payments (58)
  • First Time Home Buyers (574)
  • For Agents (1)
  • For Buyers (838)
  • For Sellers (672)
  • Foreclosures (17)
  • FSBOs (30)
  • Gen Z (6)
  • Generation X (16)
  • Holidays (3)
  • Home Decor (1)
  • Home Maintenance (2)
  • Housing Market Updates (448)
  • Infographics (183)
  • Interest Rates (145)
  • Investment (1)
  • Local Market Updates (3)
  • Luxury Market (13)
  • Millennials (75)
  • Move-Up Buyers (629)
  • New Construction (30)
  • Pricing (207)
  • Rent vs. Buy (96)
  • Selling Myths (50)
  • Senior Market (15)
  • Short Sales (1)
  • Time-sensitive (6)
  • Uncategorized (14)
  • Weekend Wanderings (1)

Recent Posts

  • Ready to Buy in 2022?
  • What you can expect from me as a buyer
  • Is your home ready to sell? Answer these quick questions to find out!
  • What do I offer for free? Glad you asked!
  • Preparing Your Home for Winter