Who would have thought that offering 120% of asking price might not even land you in the top 10% of offers?
Yes, the market here is really that crazy. But let's look a little deeper.
Asking price is often set based upon recent relevant sales in the neighborhood. With values rising so quickly, it really matters how recently the relevant homes sold. If based upon 2-3 months past, the asking price may be quite a bit behind the current market value.
For example, we priced a home I sold recently at the value an appraiser could likely substantiate. The similar comparable home sales in the neighborhood were from late 2020 - before the paradigm shift in values began. We generated multiple offers. When the first weekend was over, an offer of 120% was about the middle of the pack.
Had we asked a higher price, the final selling price most likely would have been the same. The % above would have been less dramatic.
So why start with a price that can appraise? Many financed offers contain an appraisal waiver to help them compete with cash. Most are a full waiver. Some waive only if the property appraises at least at asking price. So asking a price that can clearly appraise reduces a seller potential concern about offers with partial waivers.
The result is the seller may have more offers to seriously consider.
If you're wondering about your situation, let's talk...