More home buyers in 2017 paid more than the listed prices of properties in the U.S., which comprised 24.1% of transactions, according to Zillow.
The online property portal said that home sellers gained $7,000 more on average above their in price tags. This indicated a steady recovery of the housing market and intense competition among bidders compared to 2012 when 17.8% of home sales nationwide were acquired beyond the asking price.
Homes that are completely furnished generally fetch for higher prices, as do properties that are expanded or even have simple upgrades such as metal fences from retailers like GreatFence.com. Aside from upgrades, sellers made larger profits due to a short supply of houses for sales and high demand.
Entry-level properties had been scarce in the previous year, which is why most first-time buyers were willing to pay more to acquire a home in this segment. Favorable financing conditions such as low mortgage rates had encouraged them to take out a loan for their purchase. In some cities, sellers enjoyed a much higher return on their investments.
More than 50% of transactions in San Jose, San Francisco, Salt Lake City and Seattle went to home buyers that paid more than the asking prices. Those who bought homes at a higher value paid an average of 3.1% more than the sellers’ asking prices, according to Zillow.
In Washington, D.C., the share of home sales above asking prices comprised 25.4% of all transactions, up from 18.8% in 2012. Buyers paid 1.9% higher than asking prices, or $6,100, in 2017.
The previous year marked a good time for sellers to unlock the value of their homes, so it may be a good time to upgrade your house in 2018 in case you plan to sell in the future. How do you intend to improve your home?