November 28, 2023 - Dominique Fair
Results from Flash Survey #14: Multiple Offers and Offers Over List Price
On August 27th through the 30th, 2020, Virginia REALTORS® administered an online survey of its members to find out more about the condition of the housing market, and specifically about home sales transactions with multiple offers and offers over list price. The survey respondents included 859 Virginia REALTORS® who had represented a buyer or seller in a sales transaction in the last 30 days. The results from this survey suggest that multiple offers and prices above list price are common throughout the state, which is a major driver of the strong price growth this summer.
More than 9 out of 10 Virginia REALTORS® say that there have been multiple offers on a home sold in the past 30 days. More than half (53%) say that there have been multiple offers “across the board” or for a range of homes in different price ranges.
While multiple offers have been occurring across price ranges, entry-level homes and homes at lower price points tend to be most likely to have multiple offers. More than three-quarters of Virginia REALTORS® say that they have seen multiple offers on homes listed below $300,000. Nearly two-thirds (63%) say they have been involved in transactions in the $300,000 to $499,999 price range with multiple offers. Multiple offers were rarer at the higher end, with a third (32%) of REALTORS® seeing multiple offers on homes priced between $500,000 and $799,999 and only 12% saying that have had multiple offers on homes priced at $800,000 or more.
Some respondents pointed out that in their local markets, entry-level or starter homes were generally priced significantly below $300,000 and noted that multiple offers on homes in the $100,000 to $200,000 range were very common. Others noted that any home in good condition was receiving multiple offers in their markets.
Offers Over List Price
Nearly 90% of Virginia REALTORS® say that they have seen buyers offer over list price in transactions taking place in the past 30 days. Similar to the responses on multiple offers, offers over list price are most common for entry-level homes or homes listed at lower price points, where inventory is the most constrained. However, about a third of respondents say they have had offers over list price on properties in the $500,000 to $799,999 range, and about one in ten (12%) have seen prices over list in the luxury end of the market ($800,000 or more).
Based on results from this survey of Virginia REALTORS® members, the market remains solidly a seller’s market across the state. Homes that are in good condition and priced well not only sell quickly but also often receive multiple offers or offers above list price. REALTORS® report that there are buyers also looking for deals on foreclosures and other investment opportunities and are often willing to offer above the seller’s list price.
A note about surveys: It is important to remember that this is not a randomized sample survey of Virginia REALTORS® members. Given the sample size, the results should be fairly representative of REALTORS® active in the market. The statistics from this survey have a margin of error of +/- 3.4%.
For more information, please contact Lisa Sturtevant at firstname.lastname@example.org.
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