Shop at Lower Prices: Home Buyers & Their Preapproval
It’s no surprise that potential home buyers have been struggling to find the home of their dreams – with low inventory, all the buyers flooding the market are having to bid.
What does this mean, if you’re a buyer and wondering how you should play the field?
According to a recent Realtors ® Confidence Index Survey, agents are strongly suggesting buyers to leave room in their budget, instead of searching for homes at the highest price of the lender’s allowance amount.
Lori Ozley, manager with Birmingham HomeBuyers explained, “[…] houses are selling for more than their list price and, as a buyer, you’re more likely going to end up in a bidding war. If you look at properties that are under your budget, you’ll have room to submit a competitive offer that goes above asking price.”
You may be wondering – just how normal is it for a home to receive multiple offers?
In December 2021, the average number of offers received on a home was about four. Currently, bidding wars remain an expectation.
Check out Realtor’s ® infographic below to see where your state falls in terms of average offers received:
It’s important, as a buyer, to understand all that comes into play when purchasing a home. Check out our recent article – Final Fees & Costs for more insight into affording a home.
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