What's "Normal" Anymore?
"The market is coming down soon, right?" I used to get asked this question all the time. I've stopped hearing it so much.
Perhaps it's because we've got other things to think about. You know, important questions like "whether a celebrity should be able to smack another celebrity on live television."
Or it could be because we've got enough data to suggest the end isn't yet in our sites.
Data You Say?
The National Association of Reatltors (NAR) conducts a Confidence Index Survey each month. Here's what they found.
1. How many offers are sellers getting for their homes? The NAR reports that there were, on average - across the entire country - five offers for every home sold in February. The number of offers per listing is an increase from previous months. This increase indicates that we can expect to see multiple offer situations on smartly priced homes.
Our February listings so far this year at Team Cool Murphy support this average number. The buyer's Team Cool Murphy got in contract so far this year have had competition. This has been true with almost every home for sale, barring those that were sold off-market.
2. How often to homes sell for more than asking? According to the survey, 48% of offers were above the list price.
If you're looking to buy a home, you should prepare to settle your nerves and take those gloves off.
Our most recent listing received four offers at or above asking. The winning bid? A full ask, all-cash offer with appraisals and inspections waived, and just two weeks needed to close.
3. How much over asking are people offering? The NAR survey also shared that, on average, offers were about 2.9% above the list price. They clarify that means about $10,000 above asking for the median-priced home.
It's important to expect this level of competition when learning how much you qualify to buy with your lender. Be sure to include a buffer so you can bid up as needed.
As for Team Cool Murphy clients, we've managed to keep things reasonable.
20% of our buyers paid the listed price
20% of our buyers beat out other offers with a smart over ask strategy that still afforded them equity in their new home
40% of our buyers benefited from off-market listings
20% paid under the asking price.
4. How high is high? If 10% sounds high to you, it gets higher. The NAR published that 13% of offers made were 10% above the list price. Yes, the most desirable homes are going for more than you may think.
We have seen 10% and more offered on homes in New Orleans. It comes in handy to have cash reserves on hand to pay out of pocket between the appraisal price and the agreed-upon sales price if you want to win this game.
5. Are buyers bailing? The same report shares that "buyers typically lose out on two homes before succeeding on the third try." How's that for the third times a charm?
We've had a couple of buyers miss out once or twice before getting in the groove. But, the majority of our home search involves upfront education on what to expect so missing out is the exception and not the norm.
6. How fast are homes going? Fast. The NAR published that 84% of listings are on the market for less than a month.
Since the average home takes 30-45 days to close with traditional financing, this statistic shows that homes are getting scooped up the same day they hit the market, AND there's also a fair amount of cash buys in the data with even quicker closes.
Our listings - including one that went out of contract and back on the market - have had offers within 24 hours of our first showing.
So what can you do? If you're looking to buy, let's talk strategy well before starting your search. Then, we can set you up with an exceptional lender. Together we will help set your expectations o make sure you land an incredible home without all the stress and disappointment others are facing.
Don't 'shoot for the moon if you're looking to sell.' It may be tempting, but it will result in a home that sits on the market collecting dust.
Dusty listings make buyers perceive the home as 'having something wrong with it.' As a result, your best buyers may be scared away, leaving your home to attract deal-seekers who will not make the offers you're hoping for.
Need help understanding your home's current value? Want to talk strategy further to get the best possible dollar for your home when you're ready to sell. That's what we're here for. So give us at Team Cool Murphy a shout.
Voted Neighborhood Favorite by Nextdoor, Team Cool Murphy is a top-producing, licensed real estate team based in New Orleans, brokered by Cool Murphy, LLC.
Celebrated for her next-level creative approach to real estate, Elisa Cool Murphy is an award-winning, top-performing agent in New Orleans and the founder and leader of Cool Murphy, LLC.
Contact Her -
email: cool@coolmurphy.com
Facebook: @homeinneworleans
IG: @coolmurphynola
YouTube: @coolmurphynola
phone: 504-321-3194
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