Definition
Over-asking percentage is the portion of homes selling above list price. In strong markets, maybe 50% sell above asking. In weak markets, maybe 5% do. It's a clear market strength indicator.
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Over-asking percentage measures how many properties actually sell above their list price. In strong markets, over-asking percentage might be 40-60% of properties. In weak markets, percentage might be 5-10% (or zero). High over-asking percentage indicates: under-priced inventory, strong buyer demand, multiple-offer situations. Properties selling above asking typically have: competitive pricing that generates multiple offers, attractive properties with strong market position, or both. Over-asking percentage is strong market indicator: declining over-asking percentage suggests weakening market. Some agents under-price strategically to generate bidding wars and over-asking sales; others price at market to avoid competition from multiple offers. Both strategies can work—depends on market and seller goals. Over-asking percentage tracking helps understand market pricing patterns and the effectiveness of different pricing strategies.
Pro Tip
High over-asking percentages indicate underpricing strategy works. In low over-asking markets, price at fair market value.
Example
Market data shows 50% of properties sold for more than list price, 30% at list price, 20% below list price. This 50% over-asking percentage indicates strong seller's market.