Two-part real estate question?

Question

Can anyone knowledgeable in the real estate field take a stab at the following two questions? I realize that they’re pretty general, but just ballpark figures would be interesting to know.
1) What would you say is a rule of thumb difference (money amount or a percentage, whichever is easier) between the seller’s asking price and what that seller will accept? I realize that many factors enter into such an equation, such as market conditions, how quickly the seller wants to move, and so on; but, if you had to make some rough, general estimate, what would you say?
2) I’ve heard that ranches are in more demand now than two-story homes as the baby boomers are getting older and climbing stairs is becoming less desirable. If this is true, could you take another shot at what the difference might be (money or percentage) between a ranch and a two-story in the same neighborhood with all other things being equal, such as lot size, square footage, amenities.
Thanks.

I’d like to modify the question and push you folks a little more. I was surprised to hear that asking and selling prices could ever differ as much as 15%. That’s pretty interesting. Obviously though, that percentage leads to a higher dollar figure as the price range increases, which leads me to this more specific speculation:
I have a neighbor whose house has just gone on the market and is listed at $334,500.
It’s a ranch with 4 bedrooms. Only 5 years old or so. Good shape. 3 car garage. It’s a nice neighborhood. Now, if we apply that maximum possibility of 15%, we come up with a whopping variance figure ---$50,175 to be exact, which seems to be just too great of a plunge. So, while realizing that this is all too general to be precise, let’s pretend that someone has a gun to your head and you have to come up with a bottom acceptance figure, or you’ve had it --- what is the lowest dollar figure that this person might have to accept?

Answer 1

You are right that there are many things that go into the asking and selling price of a home. In todays market what you are likely to see is about a 12-15% difference from the original selling price and the final price. You can't just use a dollar number. Sometimes some of the difference will be as help against closing cost, some of it might be for fix up and repair and some of it is just value reduction. Several years ago during the boom period the difference was very close to 0% and in some cases it would actually go up in value.

There is an increase in demand for ranches but not so much as to skew values one way or another. For homes of the same square footage the ranch is still about 10% less than the two story.pp

Answer 2

It must depend on the area because ranches here are about 10-15% higher in price. Pricing I kinda agree with the percentages except that most of the issue is what comps are in the area. So look at the other similar houses that have sold and see what those prices were, you will see you should end up in that range. You don't want the most expensive on the block. Your lender will require 3 comps in your range. Ask your realitor for some sample sales in the area for that range. Ranches are also easier to sell because older people who have all the money don't want the stairs. :)

Answer 3

5-15% depending on your real estate market and the status of the seller (for example, if the seller is in distress and NEEDS to sell, the difference could get even higher)