I realize there are lots of variables here...but Assuming a turn-key house, in an average market (neither hot nor cold), how much below the asking price do you think the average house sells for...5%...10% ?
2007-08-03 08:13:17 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
In the North Texas area during bad times and good times the statistics have remained very much the same.
If you take all the homes that successfully sold and figure the sold price as a percent of the price they had at the time they went under contract. Some years it is 96% some years it is 95% some years it is 94%. But over the last 29 years it is right in that ball park.
2007-08-03 10:29:26 · answer #1 · answered by glenn 7 · 0⤊ 0⤋
Based on your assumptions, on _average_:
(1) Asking Price. The seller will increase the asking price to about 10-12% more than the seller would accept.
(2) Initial Offer. The buyer's initial offer will be about 88-92% of the asking price.
(3) Final Selling Price. The final sales price will be about 91% of the original asking price.
Note on math: if the seller increases the price by 10%, then the actual price is 91%, not 90%.
As you noted, however, these are averages, and averages in real estate rarely apply. You mentioned the market, but other factors include the availability of financing, the location of the particular house, etc.
2007-08-03 08:42:59 · answer #2 · answered by Tim F 5 · 0⤊ 0⤋
In a seller's market, and underbid is a waste of time. You may have to make a bid over the asking price.
If a house has not sold in a few months, it is overpriced. Your agent can advise you of an appropriate bid that will be accepted. 10% is considered nervy, and possibly insulting. But the longer its been on the market, the more poorly it has been priced.
It also depends on how anxious the sellers are. Not anxious, they won't accept a low bid, and may wait for the market to improve.
2007-08-03 08:50:27 · answer #3 · answered by Laurence W 6 · 0⤊ 0⤋
You have to look at how the price of the target house compares to similiar houses in your market. Compare price per sq foot of floor space and make other comparisons. Sometimes sellers price their houses very high, some times they are reasonable.
2007-08-03 08:35:38 · answer #4 · answered by hottotrot1_usa 7 · 0⤊ 0⤋
This forum is worldwide. The variation is extreme. You need to seek professional help, like from a Realtor who knows the market you are in. Looking for a deal are you? Or a home?
2007-08-03 08:21:52 · answer #5 · answered by Alterfemego 7 · 0⤊ 1⤋
People who buy as professionals look for 17% so anyway in between. I would look at 8-10%
2007-08-03 08:22:01 · answer #6 · answered by Barbarian 5 · 0⤊ 0⤋
initial bid of 10% under asking price is not out of line
2007-08-03 08:16:51 · answer #7 · answered by Anonymous · 0⤊ 0⤋