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I know this thread is a bit old but was wondering if this info is still available through the MLS? I'm assuming our realtor would be able to look it up?
I'm trying to figure out a good starting point if we make an offer on a house.
A good starting point is trying to figure out what the house is worth, not what the average off of list for the area is.
I know if varies per homeowner, that's why I am asking on average how much off the asking price do homeowners settle for? 5% lower, 10%?
Ugh. Hard question. In this area, since we hit a sellers market a few months ago, most homes are going for between 95% and 97% of list price. That doesn't really take into account the ORIGINAL list price -- for example, if a house was originally listed at $120,000, and then was reduced to $100,000, then a $97,000 sales price would be counted as a 97% sale, not an 81% sale. AND, that doesn't take into account closing costs paid by the seller.
Depends on the neighborhood. Depends on the condition of the house. Depends on how much leeway and motivation a seller with regards to current mortgage situation, etc.
I bought our current house in April of 2012 when we relocated out of state for retirement.
I thought their house was priced for a sale , but I offered 94% of asking.
They accepted.
I doubt they could have accepted less because although they were current on payments, they owed $1,000 less than my offer.
They had to borrow the closing costs from their parents via private loan.
They were glad to sell as they were relocating due to job and I got a nice house at a reasonable price.
Ugh. Hard question. In this area, since we hit a sellers market a few months ago, most homes are going for between 95% and 97% of list price. That doesn't really take into account the ORIGINAL list price -- for example, if a house was originally listed at $120,000, and then was reduced to $100,000, then a $97,000 sales price would be counted as a 97% sale, not an 81% sale. AND, that doesn't take into account closing costs paid by the seller.
Depends on the neighborhood. Depends on the condition of the house. Depends on how much leeway and motivation a seller with regards to current mortgage situation, etc.
My MLS can generate a report that gives the ratio of original list price to sales price. It's not a report the public can access, but I often print it off or email it to clients who ask questions about what the market is like.
"How much will a seller settle for off of list price?" is such a broad question though. There really is no answer. Not only will this vary depending upon the health of your local market, but also I've found it varies within the market even from house to house.
Here's an example . . .
In my town (Needham, MA) over the last six months the ratio of original list price to sales price has been 98%. During that same time frame homes priced in the 900's have sold at 100 of original list price and homes priced from $1.5M-$2M have sold for 93% of the original list price. So, there's variation in price ranges. In this example, that's mostly due to the far smaller number of buyers who can afford a home in the $1.5M-$2M range vs the far larger buyer pool in the 900's. Even within the 900's there were 15 sales and among them some houses sold for $60K above list price and some sold for as much as $40K under list price. You can gather as many statistics as you like but in the end there's no generalization that can be made here. When the human factor is part of the equation it's difficult to make a hard and fast rule because in the end it's the seller who is not a real estate professional making the decision on where to price the house.
This is why one of the first conversations I have with my buyers is explaining that price is merely a marketing tool used to attract potential buyers to (or sadly more often than that repel them from) the property. Price merely has a loose relationship with value which is what you'll need to establish in order to consummate a purchase.
Zillow is good for many things.
1. Shows price history.
2. Show sold prices/dates (at least in Colorado, it does). If the number looks wonky, then you can look up the property on the county website.
3. Shows some houses that are NOT in the MLS. Those from real-estate agents using v-flyer. The "make me move" ones.
4. Shows taxes.
5. Show assigned schools and nearby schools (with ratings).
Zillow is good for many things.
1. Shows price history.
2. Show sold prices/dates (at least in Colorado, it does). If the number looks wonky, then you can look up the property on the county website.
3. Shows some houses that are NOT in the MLS. Those from real-estate agents using v-flyer. The "make me move" ones.
4. Shows taxes.
5. Show assigned schools and nearby schools (with ratings).
Yes, Zillow shows a lot of data. I think the question you need to ask before you rely on it is "is the data accurate?"
Location: Danbury CT covering all of Fairfield County
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It depends on the price range. Between $200,000 and $300,000, typically starter single family homes, they are selling at 96% of last listing price. For homes selling over $500,000,the upper end of the market, they are selling at 93.7%
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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I just had a buyer offer $360K for a home listed at $435K. I told him I thought that we would be lucky to get a counter offer because we hammered the seller so hard. He said I don't think that's hammering hard. Really? 82% of asking? $75K under? Property would probably appraise at $420K
I actually told him that we should have offered $400K and tell them that that was highest and best and walk if they wanted to split the difference.
More than one buyer wanted our home after we had it for sale for more than 14 months and we ended up with an offer $500 more than the asking price?? Go figure!
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I disagree
