How much should I be able to negotiate on price?

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How much should I be able to negotiate on price?
By Scott Rogers • December 9, 2010 Filed In: analysis, negotiations
It is certainly a buyers market these days --- there are far more sellers in the market than buyers, so oftentimes buyers can negotiate quite effectively. Let's take a look at what the data shows us when examining all single family homes sold in Harrisonburg and Rockingham County in the past 12 months.... The first thing to point out is that sellers have (on average) accepted prices 4.42% below their asking prices. In fact, only 9% of sellers negotiated sold for 10% (or more) below their asking price. I thought the data might differ as we explored different price ranges, but the amount that sellers negotiated off of the list price didn't vary too much below $250k, between $250k and $400k versus over $400k. As helpful as this data can be, it does NOT account for several other factors: This analysis compares sales price to final list price. This does not account for the original list price. Thus, if a house comes on the market for $300k we might assume that it will sell for $287k (4.42% below list price) but it might be lower than that. If the listing doesn't sell, and is then reduced to $290k, and then $280k, it might finally sell for 4.42% below $280k ($268k). Sellers list their homes with varying levels of price appropriateness. Some owners of $300k homes list them for $375k. They might then accept an offer that is 20% below their asking price ($300k) thus contributing to a higher than average difference in list price and sales price. This data does not allow you to determine whether you are getting a good deal on a house. If a $300k house is listed for $250k, you can feel good about paying full price and still having a good deal. Likewise, if a $300k house is listed at $500k, you shouldn't feel good about negotiating 22% off the list price (and paying $390k). Again, as a buyer you can anticipate what sellers might expect to get for their home based on the data above, but you can't use the data to determine what an appropriate price is to offer for a house or to pay for it. Receive updates from HarrisonburgHousingToday.com via e-mail: Enter your e-mail address: Recent Articles: When Should I Start Looking For A Home To Buy If My Lease Ends This Summer? Office Building, 77 Apartments and 93,600 SF of Storage Units Proposed Amidst Residential Developments, Church, Rescue Squad and Hospital in Rockingham County There Are Usually Two Phases Of Looking For A Home January Housing Inventory Levels Sink To New Lows Will Buyer Activity Continue Full Strength In January? Maybe Some Townhouse Developments Have Fewer Homeowners (Living In Those Townhouses) Than I Thought Juniper Hill Commons, A Multi-Generational Cohousing Community Is Under Development On Keezletown Road Most Homes Sold Quickly In 2020! Not Much Negotiability In Home Prices In 2020 At Year End, Home Sales Up 13%, Prices Up 10% in 2020 in Harrisonburg, Rockingham County
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Jan 28, 2021 (unless otherwise noted).
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