29% of Sellers Think Home Is Worth Less than Asking Price
Updated: Jun 22, 2021
By Kerry Smith
Most sellers list for personal reasons, but a survey found that 1 in 4 (24%) who plan to list within the next 12 months are doing it because of the profit potential, with 53% expecting to get their asking price and 24% anticipating more. And 25% expect to have an offer within one week.
SANTA CLARA, Calif. – According to a new realtor.com survey, sellers are almost giddy with anticipation as more enter the market this year. Multiple offers, bidding wars and high prices are just the beginning of what sellers expect. HarrisX conducted the survey for realtor.com, which included 657 homeowners who plan to sell within the next 12 months. While personal motivations remained a big factor in decisions to sell, many homeowners are now doing so because they see an opportunity to turn a profit. In the survey, about one in four (24%) cited profit as a reason to list now, and 13% believe they should jump in and take advantage of the current seller’s market. As such, 29% plan to ask for more money than they think their home is worth. “Low mortgage rates and a lack of available homes for sale have created a strong seller’s market, and these survey results show that homeowners think that they have the upper hand if they list their home soon,” says George Ratiu, realtor.com senior economist. “However, after a year of challenges which kept homeowners from listing their home, we are seeing sellers coming back.” That should “help moderate prices and bring more balance to the housing market over the coming months.” Sky-high home prices: More than sellers paid With home prices up 17% year-to-year, Ratiu says it’s no wonder that 94% of home sellers expect to get more than what they originally paid when they bought their home. One in 10 sellers expect to get double what they paid for the home. More than the set asking price Due to the prevalence of multiple bids and price escalation clauses, 53% of sellers expect to get their asking price, but a notable 24% expect to get more than their asking price, and 16% expect a bidding war and multiple offers. Lightning-fast sales, no contingencies Nationally, homes are selling 41% faster than last year, with the average time on market just 43 days in the U.S. Due to this fast-paced market, 25% of sellers expect to have an offer within a week of listing and 16% expect to receive an all-cash offer. In addition, 1 in 4 (24%) don’t expect to pay for any repairs or improvements, and 16% expect buyers to waive contingencies, such as financing, appraisal or home inspection. © 2021 Florida Realtors®
Charles "Skip" Geiser
Plum Tree Real Estate Marketing