Our Beautiful House
  • Home
  • Decorate
    Decorate
    Show More
    Top News
    Fresh & Eclectic Design Trends for 2021
    July 20, 2021
    Hiring the Right Service Professional
    September 8, 2020
    40 of the Best Home Decor Stores in America
    August 29, 2020
    Latest News
    Just What Exactly Is Contemporary Design?
    December 8, 2022
    Contemporary Design Style And The Essentials To Master It
    November 22, 2022
    9 Popular Bedroom Flooring Settings to Consider
    November 21, 2022
    How to Build a DIY Breakfast Nook
    November 16, 2022
  • Rooms
    Rooms
    Show More
    Top News
    Modern White Kitchens? Tips to Clean and Maintain Your White Cabinets
    November 20, 2020
    Interior Designs Tips for Your Bedroom
    August 11, 2021
    Simple Steps of Kitchen Remodeling
    November 21, 2022
    Latest News
    9 Popular Bedroom Flooring Settings to Consider
    November 21, 2022
    How to Choose the Best Garage Floor Tiles
    November 21, 2022
    Simple Steps of Kitchen Remodeling
    November 21, 2022
    Bedroom Ideas for Sophisticated Design Lovers
    November 11, 2022
  • Outdoor
    Outdoor
    Show More
    Top News
    Small deck ideas: 31 budget decking designs for tiny gardens
    October 18, 2022
    How to Landscape on a Budget
    October 6, 2020
    25 Chic Modern Outdoor Furniture Ideas
    November 7, 2022
    Latest News
    5 Best DIY Landscaping Ideas
    November 22, 2022
    15 Fun Backyard Ideas That Kids Will Surely Enjoy
    November 14, 2022
    25 Chic Modern Outdoor Furniture Ideas
    November 7, 2022
    Small deck ideas: 31 budget decking designs for tiny gardens
    October 18, 2022
  • Lifestyle
    Lifestyle
    Show More
    Top News
    Meet Cadillac and GM’s First Fully Electric SUV… And The Interior Designer Who Took It To The Next Level
    August 30, 2020
    Downsizing? What to Do with Your Stuff
    October 5, 2020
    4 Ways to Make a Home Workout Work for You
    September 29, 2020
    Latest News
    The 6 Worst Types of Clutter for Homeowners
    December 5, 2022
    12 Hidden Storage Ideas for Combating Clutter
    November 21, 2022
    15 Fun Backyard Ideas That Kids Will Surely Enjoy
    November 14, 2022
    10 Ways to Let Go of Sentimental Clutter
    October 18, 2022
  • Real Estate
    Real Estate
    Show More
    Top News
    Closing Day: What a Buyer Needs to Do and Bring
    June 4, 2020
    What to Do When: A Timeline for Selling Your Home
    June 1, 2020
    Is It Time for You and Your Agent to Part Ways?
    June 7, 2020
    Latest News
    Homebuyers Avoid Bidding Wars. Should You?
    September 13, 2022
    10 Questions Every Homeowner Should be Asking
    September 11, 2022
    6 Ways on How To Invest in Real Estate
    September 6, 2022
    Are You Being Represented by a “Yes-Agent”?
    August 9, 2022
  • Contact
Reading: CoreLogic: Fewer Homebuyers Pay More than Asking Price
Share
Notification Show More
Latest News
Just What Exactly Is Contemporary Design?
Decorate
The 6 Worst Types of Clutter for Homeowners
Organization
Contemporary Design Style And The Essentials To Master It
Decorate
5 Best DIY Landscaping Ideas
Gardening
12 Hidden Storage Ideas for Combating Clutter
Organization
Aa
Our Beautiful House
Aa
Search
  • Home
  • Decorate
  • Rooms
  • Outdoor
  • Lifestyle
  • Real Estate
  • Contact
Follow US
  • Blog
  • Complaint
  • Advertise
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Our Beautiful House > Blog > Real Estate > CoreLogic: Fewer Homebuyers Pay More than Asking Price
Real Estate

CoreLogic: Fewer Homebuyers Pay More than Asking Price

Last updated: 2022/11/03 at 8:28 AM
By Stefan #TheListingBroker - Real Estate
Share
6 Min Read
SHARE

In 2Q 2019, about 15% of U.S. homes sold for the asking price while 67% sold for less, as bidding wars and over-asking-price offers continue to slow.

NEW YORK – For homebuyers and sellers, the original list price is the conversation starter, yet rarely the final word – only about 15% of homes in the largest metro areas sold for the seller’s original asking price during 2019’s second quarter, according to real estate data firm CoreLogic.

Discounted sale prices occurred on 61% of homes sold, CoreLogic reported, up from 57% in late 2018.

Tight markets subject to bidding wars and sale prices above the ask, of course, get the most attention these days. And those conditions continue, to varying degrees, in San Francisco. Seattle, Minneapolis, Denver, Boston, Los Angeles and Washington D.C., according to CoreLogic data.

But sale prices below the list price were common in Miami (80% of sales below list), Chicago, Houston (70%) and other major markets. Buyers and sellers need to be aware of the new reality.

Another real estate company, Knock.com, which helps people buy and sell with bridge financing, expects discounts to list price to increase in 2019’s fourth quarter. Two in three home sales in the quarter will come in below the list price, and the average discount will be near 4%, Knock estimates.

Knock predicts that more than 80% of home sales in Miami will come in under the list price, and the average discount will be near 6%. In Chicago, Houston, New Orleans and Hartford, at least 75% of home sales are expected to be at a final price that is below the original list price. The average discount in those markets is forecast to be about 5%.

The cause isn’t a soft market. Of the aforementioned areas, only Chicago price gains have failed to keep pace with inflation over the past year. Some of the markets where buyers are enjoying strong negotiating leverage are also among the best for first-time homebuyers.

Whether you are a seller setting your list price, or a buyer readying a bid, understanding the current relationship between list price and final sale price in your market – and in your price range – is key to walking away with a deal you feel good about.

This is a basic analysis every agent should provide. Recent home sale prices for “comparable” nearby homes is an important metric, but a good agent will also provide information on how that price compares to the original list price.

As a seller, your must-have price needs to be rooted in current market conditions. What you paid for your home, while intensely important to you, has absolutely no bearing for a buyer.

Yet many home sellers are victims of their own “anchoring” bias. You paid X for the house and won’t sell unless you can get X plus. Or six months ago, your neighbor sold for Y, so you are determined to get at least Y. In reality, what you will get will reflect current market conditions. What is the most recent comparable sale price? How is the local economy? Where are mortgage rates?

As a buyer, knowing the list-to-final price ratio is a valuable piece of negotiating intel. If a home is reasonably priced and 5% discounts are common, you might make a first and final offer with that discount. Or if negotiations typically go another round in your area, an offer at a 7% to 8% discount gives the seller room to negotiate back toward a 5% markdown.

A 2015 academic paper suggests an intriguing pricing strategy for sellers. Once you get close to deciding on your list price, avoid lots of zeros in the actual list price you settle on. In an experiment, researchers found that when a list price was precise rather than rounded (and slightly higher than the rounded price) it triggered the least aggressive offers from buyers.

For example, if you decide $300,000 is the right list price, the research suggests that pricing at a precise number such as $301,750 will get you a higher offer (and ultimate sale price) than if you start the negotiation at the round figure of $300,000.

Of course, if you are planning on buying another home, you can use that intel to your advantage; if the list is a round number, don’t be lulled into making too high an initial offer.

TAGGED: asking price, homebuyers, homes sold, new york
Stefan #TheListingBroker - Real Estate November 20, 2019
Share this Article
Facebook Twitter Email Print
How you feel with this article?
Love0
Happy0
Surprise0
Wink0
Sleepy0
Sad0
Angry0
Leave a review Leave a review

Leave a review Cancel reply

Your email address will not be published. Required fields are marked *

Please select a rating!

Our Beautiful House 

  • Home
  • Decorate
  • Rooms
  • Outdoor
  • Lifestyle
  • Real Estate
  • Contact
Subscribe to Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

I have read and agree to the terms & conditions

Find Us on Socials

© 2022 by #TheListingBroker. All Rights Reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?