Home sellers have big expectations of multiple offers, bidding wars, and high prices when they list their home for sale, according to a new survey from realtor.com® of 657 homeowners planning to sell in the next 12 months. Twenty-four percent of homeowners expect to get more than their asking price, and 29% of sellers plan to ask for more than what they think their home is worth, the survey shows.
Home sellers are looking to cash out on the red-hot housing market. Personal motivations are usually a major factor driving decisions to sell. But more homeowners lately want to sell because of the opportunity to make a profit, the survey shows. Nearly a quarter of respondents said that making a profit in the current market was their top reason to list, and 13% thought they should take advantage of the current seller’s market.
Homeowners may be getting the message about the booming housing market and bidding wars erupting nationwide. Home prices are up 17% over the last year, according to realtor.com®’s data. As such, 94% of home sellers say they 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.
Sixteen percent of sellers say they expect a bidding war to take place for their home and that they’ll have multiple offers to choose from. A quarter of sellers expect to have an offer within a week of listing, and 16% expect to receive an all-cash offer.
Also, many homeowners expect they won’t have to do much before settlement to make buyers happier. Twenty-four percent don’t expect to pay for any repairs or improvements to the property. Sixteen percent of sellers expect buyers to waive contingencies, such as financing, appraisal, or home inspection.
"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, senior economist at realtor.com®. "However, after a year of challenges which kept homeowners from listing their home, we are seeing sellers coming back which should help moderate prices and bring more balance to the housing market over the coming months. For homeowners planning to sell this year, research your local market conditions to ensure that your home's price reflects neighborhood trends."