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Old 03-09-2021, 12:06 PM
 
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Hi All, I am trying to purchase a house in the Pflugerville area and The real estate market is crazy. This will be my first home and every house is getting multiple offers. Anyone have any idea how much to offer over list price in general? Any advice? I made one offer on a house so far for 15K over asking and that wasn't enough.

Thank you!!
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Old 03-09-2021, 01:09 PM
 
11,662 posts, read 7,796,814 times
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Quote:
Originally Posted by mem1234999 View Post
Hi All, I am trying to purchase a house in the Pflugerville area and The real estate market is crazy. This will be my first home and every house is getting multiple offers. Anyone have any idea how much to offer over list price in general? Any advice? I made one offer on a house so far for 15K over asking and that wasn't enough.

Thank you!!
A lot

If buying is a must right now then you’re ganna have to put your highest bid in just for a chance. Many are going over the $20 - $30k mark
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Old 03-09-2021, 02:35 PM
 
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15k... better up that to all cash, 30K+ if you want to be in the high rollers club.. Ill sell you my house for a million in cedar park if you want it :P 1700 sq ft! Costco nearby! :P
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Old 03-09-2021, 03:13 PM
 
3,038 posts, read 3,212,997 times
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Quote:
Originally Posted by mem1234999 View Post
Hi All, I am trying to purchase a house in the Pflugerville area and The real estate market is crazy. This will be my first home and every house is getting multiple offers. Anyone have any idea how much to offer over list price in general? Any advice? I made one offer on a house so far for 15K over asking and that wasn't enough.

Thank you!!

Hard to put a single number behind it, esp since we don't know what type of price range you're looking at (going 15K over on a $250k house is a lot different than on a $600k house). A competent agent should be able to get a feel for just how hot any given house is and guide you accordingly.


As Jimmy P mentions, don't overlook other aspects of your offer outside of absolute $$$ that might give you an edge over even higher offers (e.g. no contingencies, verified pre-approval, higher option $$$, reduced or eliminated option periods, higher earnest, and of course, the all mighty cash offer). Every seller is different so you'll have to gauge on a case by case basis what makes sense.


Good luck, it's a crazy real estate world out there right now. Good news is that more inventory appears to be coming online.
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Old 03-09-2021, 04:24 PM
 
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Originally Posted by austinnerd View Post
Hard to put a single number behind it, esp since we don't know what type of price range you're looking at (going 15K over on a $250k house is a lot different than on a $600k house). A competent agent should be able to get a feel for just how hot any given house is and guide you accordingly.


As Jimmy P mentions, don't overlook other aspects of your offer outside of absolute $$$ that might give you an edge over even higher offers (e.g. no contingencies, verified pre-approval, higher option $$$, reduced or eliminated option periods, higher earnest, and of course, the all mighty cash offer). Every seller is different so you'll have to gauge on a case by case basis what makes sense.


Good luck, it's a crazy real estate world out there right now. Good news is that more inventory appears to be coming online.
Thank you! I was wondering if inventory was incoming. I think that would help shift the market. I don't think the prices will appraise out.
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Old 03-09-2021, 04:47 PM
 
Location: Austin, TX via San Antonio, TX
9,843 posts, read 13,572,865 times
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Quote:
Originally Posted by mem1234999 View Post
Thank you! I was wondering if inventory was incoming. I think that would help shift the market. I don't think the prices will appraise out.
People are waiving appraisal in many offers. Offer a million dollars on a 500k house and waive the appraisal. You’ll get the house and be out of a lot of money. But, that’s what’s happening.
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Old 03-09-2021, 07:47 PM
 
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Originally Posted by mem1234999 View Post
Thank you! I was wondering if inventory was incoming. I think that would help shift the market. I don't think the prices will appraise out.

Hold your horses there now. I just said "more inventory", with "more" being a relative term. I think it's going to be a while before inventory reaches a point that we'll see any significant shift.


As for prices not appraising, that's a tricky one. Remember, the point of the appraisal is to divine a 'value' for a property. Technically there is no 'appraisal' more 'accurate' than a sale (assuming a reasonable sampling). If you have a dozen people willing to pay $600k for an 'appraised' $500k house, and that pattern is market wide, are the people 'wrong' or are the appraisals? Remember, that $500k house that sold for $600k is going to become the comp for the next sale so appraisals tend to be a trailing indicator of market trends.



Interesting times in real estate these days, not for the faint of heart (on the buying side).
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Old 03-09-2021, 07:58 PM
 
Location: Round Rock, Texas
13,437 posts, read 15,337,866 times
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Quote:
Originally Posted by mem1234999 View Post
Thank you! I was wondering if inventory was incoming. I think that would help shift the market. I don't think the prices will appraise out.
I live in Round Rock East. Don't bank on that, especially in this area. The market isn't going to be shifted anytime soon and the homes sell for over asking. we had our home recently appraised and the appraiser noted the increased sales, with sale to list over 110%. So the people are getting what they ask for and then some. More inventory means that there will be more homes..not cheaper homes.
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Old 03-10-2021, 09:23 AM
 
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Agree that bid over ask depends on many factors include price range of current home. I'm not sure if house sales prices are adjusting quickly enough, but have heard of verified sales of regular homes (between $300k-$900k) going for $75-$100k over ask.
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Old 03-10-2021, 01:54 PM
 
5 posts, read 4,191 times
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Originally Posted by austinnerd View Post
Hold your horses there now. I just said "more inventory", with "more" being a relative term. I think it's going to be a while before inventory reaches a point that we'll see any significant shift.


As for prices not appraising, that's a tricky one. Remember, the point of the appraisal is to divine a 'value' for a property. Technically there is no 'appraisal' more 'accurate' than a sale (assuming a reasonable sampling). If you have a dozen people willing to pay $600k for an 'appraised' $500k house, and that pattern is market wide, are the people 'wrong' or are the appraisals? Remember, that $500k house that sold for $600k is going to become the comp for the next sale so appraisals tend to be a trailing indicator of market trends.



Interesting times in real estate these days, not for the faint of heart (on the buying side).
I totally get what you are saying but there could be a shift, even if it's not significant. Anything helps, in my view.

Regarding appraisals, there is no right or wrong. Show me the same house seen by three appraisers and all will come up with a different number. I have seen it. Also, the offer price is not necessarily the closing price. All in all, a tough market for the buyer. Most likely will be looking further out. For now, not such a frenzy.
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