What is considered a fair offer on a Houston house? If you’re planning to buy a home in Houston, it’s important to know how much to offer and what’s considered a fair offer in the current market.
In this post, our team at Your Home Sold Guaranteed Realty - Chris Schmidt Team will cover the cost of homes in Houston in recent months, as well as what to know when making a fair offer.
Key Takeaways:
- In recent months, homes in Houston sold for a median price of $335,000, which is a 5.7% increase compared to the same time last year.
- If you’re buying a home in a seller’s market, a fair offer will likely be the exact asking price or higher. This is because you’ll be competing with many buyers for a small supply of homes.
- In a buyer’s market where buyers have more leverage, a fair offer would be considered asking price or lower.
How Much Do Houston Homes Cost?
In recent months, homes in Houston sold for a median price of $335,000, which is a 5.7% increase compared to the same time last year. Most homes sell for 3% below their original asking price, while the hottest homes sell for their exact original listing price.
Homes in Houston have a sale-to-list price ratio of 97.1% and 14.2% of homes sell above their original asking price. In addition, 25.6% of homes drop their asking price at some point after being listed.
What is Considered a Fair Offer on a Houston House?
A fair offer for a home in Houston will look different depending on the condition of the home, its asking price, and the current market conditions.
For example, if you’re buying a home in a seller’s market, a fair offer will likely be the exact asking price or higher. This is because you’ll be competing with many buyers for a small supply of homes, so offering the asking price or higher can help you stand out to sellers.
But in a buyer’s market where buyers have more leverage, a fair offer would be considered asking price or lower.
Your original offer may or may not align with the home’s asking price. Typically, you’ll make an initial offer and if it appeals to the seller, you’ll both head to negotiations to determine a final sales price.
There are a few general guidelines to help you make an initial offer that appeals to the seller while also getting you the best possible price on the home:
- Offering 20% or more below asking price is usually only achievable in a buyer’s market, where you’ll have more negotiation power over the seller. It’s also acceptable if the home needs extensive repairs or is overpriced compared to similar homes in the area. But generally, it’s difficult to get most sellers to accept an offer that’s 20% lower than the asking price, because it’s considered a lowball offer.
- Offering 15% or below asking price is a fair offer if the home needs some larger repairs, but is still in good condition overall. It can also be a fair offer if you know the seller is looking to sell quickly. They may be willing to accept a slightly lower price for a quick sale.
- Offering 10% or below asking price is fair if the home is in great condition and only needs some small cosmetic upgrades to bring its value more in line with similar homes on the market. In addition, making an offer like this is fair if the home has been on the market for a while. The seller might be willing to accept a lower asking price just to get it sold.
- Offering 5% or below asking price can be a fair offer if you’re using it as a starting point for negotiations, especially in a neutral market where neither you nor the seller have the upper hand in the transaction. Additionally, if you’re a cash home buyer, an offer in this range would be fair in exchange for the benefits that come with cash sales.
- Offering anything over the asking price is fair in a seller’s market where there’s competition from multiple other buyers. It’s also fair if you’re trying to buy a home you really love that already has offers from other buyers.
Make a Fair Offer on a Houston Home Today with Chris Schmidt
A Houston realtor is essential for determining a fair offer. At Your Home Sold Guaranteed Realty - Chris Schmidt Team Chris Schmidt and our team have years of experience working in the Houston metropolitan area.
Our familiarity with the local market trends, as well as our legendary customer service, are why we’ve developed a reputation as the best realtor in Houston. We can easily help you make a fair offer on a Houston house that’s in line with market value. In addition, our Buy it Back Guarantee makes buying a home with us risk-free.
To learn more about buying a home with our team, give us a call at 713-322-5604. You can also fill out the form on this page or send a message to [javascript protected email address].
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