The 2021 real estate market has been on fire, with few signs of slowing down. And with any seller’s market comes competition from other buyers. No investor likes to pay over asking price for a property, but if the market is hot and the numbers work, sometimes you may not have much of a choice when competing against retail buyers or even other investors.
But how much is too much? You want to be able to make an appealing offer to lock in the deal but obviously don’t want to pay more than you have to. So just how much over asking price should you offer on a home in 2021? Read on to find out the stats this year’s market has been supporting and how to analyze your own market.
The sale-to-list ratio
The sale-to-list ratio is one of many indicators used to determine if the real estate market is a buyer’s or seller’s market. A ratio of 100% indicates sellers are getting what they list the house for. A percentage below that would indicate more…