{"id":3463,"date":"2021-03-24T05:00:40","date_gmt":"2021-03-24T10:00:40","guid":{"rendered":"https:\/\/nwiloanguy.com\/blog\/why-you-should-think-about-listing-prices-like-an-auctions-reserve-price\/"},"modified":"2021-03-24T05:00:40","modified_gmt":"2021-03-24T10:00:40","slug":"why-you-should-think-about-listing-prices-like-an-auctions-reserve-price","status":"publish","type":"post","link":"https:\/\/nwiloanguy.com\/blog\/why-you-should-think-about-listing-prices-like-an-auctions-reserve-price\/","title":{"rendered":"Why You Should Think About Listing Prices Like an Auction\u2019s Reserve Price"},"content":{"rendered":"<p><img data-recalc-dims=\"1\" decoding=\"async\"  src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/03\/22131208\/20210324-KCM-Share-549x300.jpg?w=358&#038;ssl=1\" class=\"webfeedsFeaturedVisual wp-post-image\" alt=\"Why You Should Think About Listing Prices Like an Auction\u2019s Reserve Price | Simplifying The Market\" loading=\"lazy\" style=\"margin-bottom: 5px;clear:both;max-width: 100%\" \/><\/p>\n<p>For generations, the homebuying process never really changed. The seller would try to estimate the market value of the home and tack on a little extra to give themselves some negotiating room. That figure would become the listing price of the house. <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/03\/03\/how-smart-is-it-to-buy-a-home-today\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Buyers<\/a> would then try to determine how much less than the full price they could offer and still get the home. The asking price was generally the ceiling of the negotiation. The actual sales price would almost always be somewhat lower than the list price. It was unthinkable to pay more than what the seller was asking.<span id=\"more-44061\"><\/span><\/p>\n<h4><strong>Today is different.<\/strong><\/h4>\n<p>The record-low <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/02\/22\/where-have-all-the-houses-gone\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">supply<\/a> of homes for sale coupled with very strong buyer demand is leading to a rise in <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/03\/12\/how-to-be-a-competitive-buyer-in-todays-housing-market-infographic\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">bidding wars<\/a> on many homes. Because of this, homes today often sell for more than the list price. In some cases, they sell for a lot more.<\/p>\n<p>According to the <em>Home Buyers and Sellers Generational Trends<\/em> <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/research-reports\/home-buyer-and-seller-generational-trends\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">report<\/a> just released by the <em>National Association of Realtors<\/em> (NAR), <strong>45% of buyers paid full price or more<\/strong>.<\/p>\n<h4><strong>You may need to change the way you look at the asking price of a home.<\/strong><\/h4>\n<p>In this market, you likely can\u2019t shop for a home with the old-school mentality of refusing to pay full price or more for a house.<\/p>\n<p>Because of the shortage of inventory of houses for sale, many homes are actually being offered in an auction-like atmosphere in which the highest bidder wins the home. In an actual auction, the seller of an item agrees to take the highest bid, and many sellers set a reserve price on the item they\u2019re selling. A reserve price is the minimum amount a seller will accept as the winning bid.<\/p>\n<p>When navigating a competitive housing market, think of the list price of the house as the reserve price at an auction. It\u2019s the minimum the seller will accept in many cases. Today, the asking price is often becoming the floor of the negotiation rather than the ceiling. Therefore, if you really love a home, know that it may ultimately sell for more than the sellers are asking. So, as you\u2019re navigating the homebuying process, make sure you know your budget, know what you can afford, and work with a trusted advisor who can help you make all the right moves as you buy a home.<\/p>\n<h3><strong>Bottom Line<\/strong><\/h3>\n<p>Someone who\u2019s more familiar with the housing market of the past than that of today may think offering more for a home than the listing price is foolish. However, frequent and competitive bidding wars are creating an auction-like atmosphere in many real estate transactions. Let\u2019s connect so you have the <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/02\/01\/turn-to-an-expert-for-the-best-advice-not-perfect-advice\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">best<\/a> advice on how to make a <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/03\/15\/how-to-make-a-winning-offer-on-a-home\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">competitive<\/a> offer on a home in our local market.<\/p>\n<p>Source: New feed<\/p>\n","protected":false},"excerpt":{"rendered":"<p>For generations, the homebuying process never really changed. The seller would try to estimate the market value of the home and tack on a little extra to give themselves some negotiating room. That figure would become the listing price of the house. Buyers would then try to determine how much less than the full price [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3464,"comment_status":"false","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10157519356927224_105287467588662":"","twitter_15771620_15771620":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[54],"class_list":{"0":"post-3463","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-local-info","8":"tag-100-financing","9":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why You Should Think About Listing Prices Like an Auction\u2019s Reserve Price&#8212;NWI Loan Guy Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nwiloanguy.com\/blog\/why-you-should-think-about-listing-prices-like-an-auctions-reserve-price\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why You Should Think About Listing Prices Like an Auction\u2019s Reserve Price&#8212;NWI Loan Guy Blog\" \/>\n<meta property=\"og:description\" content=\"For generations, the homebuying process never really changed. 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