Does every Bay Area home sell for above its original listing price?

Despite what most homebuyers may believe, not ALL Bay Area homes actually sell for above the original listing price. The amount that do vary by city, and there are a lot of factors that go into why a home may sell for more than the listing price.

Of course the nice homes in great neighborhoods that are turn-key will be in high demand, but sometimes the listing agent may intentionally set the price low to generate people's interest. That particular strategy is what makes this statistic very misleading for homebuyers.

Knowing which homes are intentionally underpriced and which homes are priced fairly is one of the key skills of a good buyer's agent. They should be able to provide you with detailed insights on comparable sales of the subject property in order to best advise you on what the realistic selling price should be in the range of. If your agent is always advising you to "just overbid", that's a big red flag.

The sales statistics below show that overbidding the listing price may be very common, but it is not always necessary. Below lists each county's percentage of homes that sold for above its original listing price, and how much over the listing price was paid on average for those homes.

*This information is derived from MLS data for single family homes sold (except for SF) from JAN - OCT 2024.

ALAMEDA COUNTY

70% of homes sold over asking | Average of 113.09% of listing price paid

🔥Hottest City: Berkeley | 81% of homes sold over asking | Average of 126.41% of listing price paid

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CONTRA COSTA COUNTY

53% of homes sold over asking | Average of 107.30% of listing price paid

🔥Hottest City: El Cerrito | 70% of homes sold over asking | Average of 125.36% of listing price paid

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MARIN COUNTY

45% of homes sold over asking | Average of 108.71% of listing price paid

🔥Hottest City: Greenbrae | 66% of homes sold over asking | Average of 111.53% of listing price paid

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SAN FRANCISCO

52% of homes sold over asking | Average of 115.07% of listing price paid

🔥Hottest Neighborhood: Golden Gate Heights | 96% of homes sold over asking | Average of 124.34% of listing price paid

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SAN MATEO COUNTY

62% of homes sold over asking | Average of 111.19% of listing price paid

🔥Hottest City: Millbrae | 81% of homes sold over asking | Average of 113.27% of listing price paid

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SANTA CLARA COUNTY

69% of homes sold over asking | Average of 111.50% of listing price paid

🔥Hottest City: Sunnyvale | 85% of homes sold over asking | Average of 115.23% of listing price paid

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As you can see, some Bay Area markets are hotter than others. For the most part, yes, many Bay Area homes sell for above their listing price, but that doesn't mean it's always required. There are still a good portion of homes that sell for at or below the listing price as well. Just don't expect one of those deals in cities like Berkeley, El Cerrito, Millbrae or Sunnyvale!

Moral of the Story:

When you're considering what to offer on a home, be sure to have your buyer's agent show you comps to support the price point that you're offering. Do not just overbid for the sake of doing so. You might be paying more than you should be!

When you buy a home through Reebate, we provide a detailed analysis of a home's potential selling price to ensure you are offering the right amount based on the current market value. And of course once your offer is accepted and you close on the home, you get a cash back rebate of up to 1% of the purchase price!