Yes, in a seller’s market. In March of 2021 in the East Bay of the San Francisco Bay Area, we are regularly getting 20–40 offers on every single family home and they are selling well above the listed price. With this many offers you have to offer well above the asking price to have a chance to buy a property because you won’t get a second chance. The main reason for this buying frenzy is historic low housing inventory and record low mortgage interest rates, among other factors.
For example, for a home in our area this month there was a house listed for $1.5m and it received 32 offers and sold for over $1.8m. I told my buyers exactly what offer they would have to make to get it but they didn’t believe me and ended up in 25th place!
It’s a crazy market right now and very frustrating for some buyers but I’m closing two homes this week for buyers who believed me and made offers well above the asking price. They couldn’t be happier because, right now, homes in our area are currently rising in price by 2.5% a month (30% a year)!
However, in a “normal” real estate market, where there are an equal number of home purchasers and sellers, the buyers will usually offer at or below the listed price and then the negotiating begins. The same is true for a “buyers’ market” where there are very few buyers for too many listings.
If you are trying to purchase a home in a sellers’ market be prepared to make offers above the listed price and work with an agent who knows how to get offers accepted in this kind of market.