It’s no secret that home prices in the Central Valley have been increasing at a rapid pace. For the past 15 months there have been year-over-year increases in the median sales price. With fewer homes on the market, home sellers have had the luxury of reviewing prices that homes in their neighborhood have recently sold for and then asking a little more for their home.
Rising home values have also been the result of properties receiving multiple offers with some willing to pay more than the listed price. In June of this year, 38.8% of the offers for homes in Fresno and Clovis were for more than the seller was asking. And an additional 20.9% of buyers were willing to pay what the seller wanted for their home. Although many people consider bartering to be part of the home buying experience, in June 59.7% of Fresno/Clovis home buyers paid full price or more.
While one home buyer was willing to pay $154,875 for a home that was listed for $99,000; on the average home buyers who offered “over list price” paid 5.2% more than the list price for Fresno/Clovis homes this June.
Before making an offer, home buyers should be familiar with the asking prices of homes they can qualify to purchase. They can ask their real estate agent to provide them with details about recently sold homes that have similar characteristics to the one they are interested in buying. And buyers should be familiar with market trends, such as whether prices are increasing, or if multiple buyers means they should consider making an offer “over list price” on a home they truly love.