In a competitive seller’s market, like the one we are currently in, sellers usually have more leverage when negotiating with buyers. The sellers of a house have more power in these types of situations because homes are flying on and off the market at a record pace.
There are simply not enough houses for sale to keep up with the number of buyers. Sales are still increasing each month, but the number of available homes is steadily decreasing.
The leverage between sellers and buyers in this sense is the seller’s ability to award or eliminate costs in order to actually sell their home. Sellers have immense power in this market to influence buyers to move more on their side in the process. Sellers also have the ability to receive more benefits and eliminate costs on their end. Another advantage for sellers right now is to possibly sell their home for more than it would be worth in a far more normal market because buyers are desperate since inventory is low.
The trend of buyers who are being outbid by others is sitting at 40%. Being outbid by others is one of the biggest reasons people have not been able to find a home. The other reasons why people are not able to buy homes usually consist of not finding a home they can afford, having features that they want or need, or not finding a home in a neighborhood they would like. All of these scenarios have been decreasing significantly over the last few years but being outbid by others is increasing.
There are buyers out there offering all cash offers for a home which in the eyes of a seller, is the quickest and easiest way to sell their home. Others are waiving contingencies for a smoother selling process. You could put in an offer on a house that is $20,000 over asking price but be outbid by someone putting in an offer significantly larger than that. This is just how the market is going right now.
Buyers are buying a home right now to just buy a home, buy now before prices continue to rise, and to take advantage of record low mortgage rates. But, with numerous offers on just one home, the sellers have the ability to leverage with the buyers to weed out and find the right potential buyer for their situation.
If you need help finding ways to make a deal with a seller or you are wanting to make sure your offer is good enough, contact a local real estate agent.