Did you know that currently one-third of all home purchases involve bids above the asking price?

This number is on the rise, as homes spend an average of just 18 days on the market.  As a result, buyers looking to purchase a home face the dilemma of whether bidding above the asking price is a wise decision. The key to evaluating this is determining the breakeven point and considering future appreciation.

Thankfully, we have access to historical data and future forecasts for every market. Working together, we can provide you with a clear projection of the time it will take for the value of the home to reach your bid, and we also assess future appreciation. This approach ensures that your decision is based on solid data rather than emotions. 

The best part is we can accomplish this in just a matter of minutes. With appreciation on the rise, (see chart below) this can work in your favor from day one.

Here’s a quick example: Let’s say you love a house currently listed at $459,000, and in this example you go in at $10,000 over asking price.  Based on predicted inflation of 3.82% a year, you will break even in five months (see chart). 

Oh and you will gain $90,000 in equity over 5 years. Yes, your financial advisor will be impressed!  This will be possible because you gave a bit more than asking price with confidence from knowing your numbers and having the data to back it up.

Reach out to me today, and I will help you in securing the home of your dreams. It’s all about just simply plugging in the numbers with me!

About the Expert:

Donnie Eden is a licensed mortgage planner and the owner of Prosperity Mortgage Advisors in White House, Tennessee, founded in 2015. He has his BA in Economics from The University of Tennessee and has helped over 5,000 families so far throughout his career.