The real estate market has been struggling, so I should expect home sellers to accept really low offers, right?
These days, it is easy for home buyers to dream of getting the deal of a lifetime for their next home purchase. Stories in the news might make us think that sellers will accept just about anything. Desperate times call for desperate measures, we think. Home sale data does not show this to be the case.
With our market experiencing an inventory that exceeds demand, purchase prices are falling.
This creates a situation for buyers to get a great value, maybe even the deal of a lifetime. But, it probably won’t be because someone sells their home to you for a significant amount less than their asking price.
Let’s take a look at actual home sale data from our experienced Colorado Exclusive Buyer’s Agents. It you can help you set realistic expectations about what to expect during your negotiations. Realistic expectations can help save time and effort by avoiding submitting offers that will probably be rejected, looking in appropriate price ranges, and, ensure that you don’t miss out on your dream home by being outbid by another buyer.
The overwhelming majority of homes sells 2-5% below the asking price.
In fact, according to one of our exclusive buyer’s agents study of 21,000 homes in the Boulder County and Northern Denver metro, about 80 to 85% of homes sell for about 2-5% under the asking price About 10% to 15% of homes sells for between 6-10% of the asking price, with most of those in the 6-7% range. This pattern is consistent whether you are looking for a $200,000 home or a $600,000. Interestingly, this pattern is consistent in different economies as well. Our exclusive buyers agents compared the data for the boom economy and the bust economy.
That’s not to say that those two economies are the same, because of course they are not. Current market values are decreased in a bust economy which is what really allows you to get more for your money, rather than seller’s accepting significantly less than their asking price. Additionally, you will see differences like more homes selling for at or above the list price in a booming economy than you would in a slower one.
The bottom line? Most homes sell for within 2-5% of their asking price. Most people can expect to purchase a home within this range of its list price.
Remember, this is still a significant amount less than the listing price. For a home that in the $200,000 range, this is about $4,000 to $10,000.
Your buyer’s agent will be able to provide expert advice on a case by case basis so that you will get the most out of your negotiations.
They will be able to leverage their local knowledge of the area and the current market, plus anything found in the home inspection to ensure that you get the best possible deal.