In a seller’s market, there are simply too many buyers and not enough homes. When there are not enough homes, prices will inevitably rise.
This begs to question: are Knoxville homes selling above list price?
The simple answer is yes. In some cases, homes are selling above list price. In this post, we’ll explain when Knoxville homes are selling above list price.
In a seller’s market, it’s not uncommon that there will be multiple offer situations, especially when a home is just hitting the market. When inventory is already sparse, new homes are like a breath of fresh air to buyers. As soon as they hit the market, buyers are lining up to see them and are quickly making offers on these homes.
In these cases, homes are often receiving multiple offers very quickly. When this happens, homes are often receiving offers above list price. When you’ve got multiple buyers vying for a home, the price tends to increase above the list price as buyers hope to outbid each other.
Sellers may receive a good offer from you, but it may not be quite the right price. So, they may try to counter back in homes that they’re able to get the price they’re wanting. When this happens, homes tend to sell above list price.
Many buyers, especially first-time buyers, want to have their closing costs covered. Unfortunately, when sellers are getting offers at list price, buyers don’t necessarily have the wiggle room to ask for closing costs to be cover unless buyers are willing to write an offer over list price.
Oftentimes, when a buyer is wanting to get closing costs covered and the seller isn’t wanting to pay them, the easiest way to get them paid is to write them into the sales price. For example, if a home was listed for $279,000 and you needed $6,000 in closing costs covered, you would offer $285,000 to account for the seller paying your closing costs. This way, you don’t have to end up paying them, you just end up paying more for the home.
As a buyer, you’ll just have to decide if and how much in closing costs you’re going to want to be covered.
Under no circumstances do you need to pay more for a home than what you feel it is worth. When a seller counters back at a higher price, you’re under no obligation to accept the counteroffer. You can walk away altogether or counter back at what you feel is a more reasonable price.
But, just as a word of warning, in a seller’s market homes tend to sell at or above list price, so that is something you should be prepared for when you enter the market.
Are you thinking about buying a home this year? Please let Knoxville Home Team know if there is any way that we can assist you in your Knoxville home search. Rick can be reached at 865-696-9002 or via email at [email protected]. Kati can be reached at [email protected].
Also, be sure to check out our Knoxville Home Search Page to see what homes are for sale in the area.
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