Nearly 60% of Home Offers This Year Were Above Asking

Almost 60% of home offers submitted so far in 2023 were above asking price, according to a survey of over 400 real estate agents and brokers conducted by Assurance IQ. The survey asked respondents various questions about the homebuying process this year.

According to the findings, nearly half of real estate agents (49%) said their clients typically toured seven or more homes before making an offer. Fifteen percent of agents reported their clients toured one to three homes, 36% reported four to six tours, 19% at seven to nine tours, 18% at 10-12 tours, 7% at 13-15 tours and 5% at more than 16 tours before making an offer.

When it comes to offers, the majority of homebuyers submit less than six before closing on a home. Thirty-eight percent of overall homebuyers (32% of first-time buyers) submitted one to three offers, and 29% of overall homebuyers (33% of first-time buyers) submitted four to six offers before finally closing. Still, 33% of agents reported that their buyers put in more than seven offers throughout their homebuying process.

When it came to taking an agent’s advice about offers, 65% of agents reported that their clients “often” took their advice, while 21% said their clients only “sometimes” did.

The survey also found that the largest share of respondents (33%) said their clients typically put in their first offer within one to two months of starting their home search. In comparison, 28% said their clients put in their first offer within less than a month, 27% said it took three to four months, 9% said seven to nine months and 2% said more than 10 months.

Seventy-eight percent of agents agreed that it usually takes first-time homebuyers longer to put in their first offer. The majority of respondents (58.2%) reported that the average age range of their first-time homebuyer clients was 25-34 years old. Others reported 35-44 years old (32.5%), 45-54 years old (4.8%) and 18-24 years old (4.6%).

The age group who’s been the fastest to put an offer on a house has been those ages 35-44 years old (40%). Representing the other age ranges, 33.1% of respondents said their fastest clients were 25-34 years old, 15.3% said 45-54 years old, 7% said 18-24 years old and 4.6% said 55 years or older.

Real estate professionals surveyed reported that the top five factors influencing homebuying decisions this year were price and affordability, financing and mortgage options, location and neighborhood, family-friendly home features and emotional appeal. The top five pet peeves of agents were buyers with high expectations and low budgets, invested time with an uncommitted buyer, unresponsive clients, late/missed client appointments and sellers who set unrealistic listing prices.

This year, 58% of agents said that their clients have mostly offered above-asking prices on homes. Of those, 26% said their offers were above asking by 11-24%. The breakdown of offer types as reported by respondents is as follows:

• Above asking price by 11-24% – 26% of respondents
• Above asking price by 10% or less – 21% of respondents
• At asking price – 18% of respondents
• Below asking price by 10% or less – 17% of respondents
• Above asking price by 25% or more – 11% of respondents
• Below asking price by 11-24% – 6% of respondents
• Below asking price by 25% or more – 1% of respondents

Overall, 70% of real estate agents said they have seen an uptick in homebuyers after mortgage rates dropped this year. Additionally, 42% said buyers frequently pass on a home because it lacks an office or dedicated remote workspace, 56% said they pass because the home is not in an ideal school district and 64% reported that their clients were receptive to 3D or virtual home tours.