How much can I negotiate off of a home's asking price?

Over the past year in Harrisonburg and Rockingham County, 93% of all homes sold have sold within 10% of the seller's asking price.



Given this market data, keep the following things in mind as you are considering making an offer on a home, or as you are considering pricing your home to sell:

1. If you're thinking you'll be able to knock 20% or more off the asking price, you might have a hard time finding a property where a seller is willing to do so.  There are some (14 in the last year), but the odds are rather low.
    
   
2. The average sale price to list price ratio during this time frame was 97% --- the median ratio was 98%.  Thus, if you're negotiating more than 3% off the asking price, you're doing better than most!
    
   
3. This doesn't mean that most homes on the market will sell within 10% of their current list price.  It may take a price reduction on the part of the seller in order to generate an offer (and then contract) that falls within 10% of the asking price.
    
   
4. Sellers -- don't get carried away overpricing your property thinking buyers will make offers.  The data above is also indicative of the fact that buyers aren't making offer after offer trying to negotiate significant amounts off the asking price.

This was a fantastic question asked by one of my current clients.  If you have a question, call me at 540-578-0102 or e-mail me at scott@cbfunkhouser.com.  Chances are, others have the same question, and it would be worth analyzing to benefit us all.

Happy negotiating!