Why Are Houses in Annapolis Selling Above Asking Price?
By Stuart Kiehne, NMLS #92008 – Redwood Mortgage Services
Your Local Mortgage Expert Since 1999
The Big Question: Why Are Homes Going Over Asking in Annapolis?
If you’ve been searching for a home in Annapolis, you’ve likely noticed a trend—homes are flying off the market and often sell for thousands over list price. But why?
Let’s break down the local trends, what’s causing this competitive environment, and how buyers (and their agents) can win in this market.
What’s Fueling the Frenzy?
1. Low Inventory, High Demand
According to local MLS data, Annapolis inventory is down 20% year-over-year, while buyer demand remains strong due to:
The city’s historic charm and waterfront lifestyle
Proximity to Washington, D.C. and Baltimore
Highly rated public and private schools
Fewer homes on the market + steady demand = multiple offer situations.
2. Rate-Locked Homeowners
Many homeowners in Annapolis refinanced during 2020–2021 at rates under 3%. These owners are choosing not to sell, tightening inventory even more.
3. Lifestyle Migration
Annapolis is attracting remote workers, military families relocating to the Naval Academy, and retirees looking for walkable, vibrant communities—putting even more pressure on a limited supply.
What “Over Asking” Really Means
Median home prices in Annapolis have jumped 7% in the past year
Most winning offers are $10K–$30K over asking
Some buyers are offering appraisal gap coverage or waiving contingencies to win
How Buyers Can Compete—and Win
Here’s how we help clients stand out at Redwood Mortgage Services:
Get Fully Underwritten Pre-Approval
We offer advanced pre-approval, not just a pre-qual. This makes your offer stronger and shows sellers you’re serious.
Use a Local Loan Officer Who Knows Annapolis
We work closely with local realtors and know how to structure competitive offers that get accepted.
Understand What You Can REALLY Afford
We’ll walk you through payment scenarios—including what happens if you offer $20K over asking—so you’re confident and prepared.
Why This Matters to Realtors & Sellers
If you're a Realtor in the Annapolis market, helping buyers get fully approved with a lender like Redwood Mortgage Services can mean the difference between getting under contract—or not.
If you’re a homeowner, it’s a seller’s market—but pricing strategically and working with serious, approved buyers still matters.
Final Word from Stuart
“Over-asking sales aren’t a bubble—they’re a reflection of strong local demand, low supply, and Annapolis’s incredible value as a place to live. With the right strategy, buyers can still win in this market.”
— Stuart Kiehne, President, Redwood Mortgage Services