Sellers Gain Tiny Bit of Traction in Sept., but Buyers Still Negotiating Thousands Off Home Prices
By: Katie Curnutte, Zillow PR Manager | November 11, 2009
The negotiating power of homebuyers slipped a tad in September, but buyers in most markets were still negotiating thousands of dollars off the last listing price of homes. Buyers nationally negotiated a median 2.9 percent off the final listing price, down a bit from 3 percent in August, according to the September Zillow Real Estate Market Reports.
In some markets, buyers continued negotiate large discounts. The Vero Beach, Fla., market topped the list again in September, with buyers paying a median 8.1% off the final price of homes. Based on a median listing price of $235,000, that translates to a discount of nearly $19,000. The other top negotiating spots were also in Florida, with buyers in the Naples, Sarasota and Panama City markets negotiating more than 7% off the final listing price of their new homes.
On the other end of the spectrum, buyers paid more than asking price in seven metro areas. Most of these were the California markets that have been hardest-hit by foreclosures. In Stockton, buyers paid a median 2.4%, or about $4,500 more than asking price. In Las Vegas, buyers also paid more than asking price (a median 0.5% or $836).
Below is a list of 10 markets where sellers are getting more than asking price.
One note about homes still on the market: 22.7 percent of them had a price cut as of the end of September, and sellers cut a median 6.5% off.
- Stumble it!
- Categories: Real Estate Analytics
Comments
9 Comments so far
Enjoy this post? Subscribe to the Zillow Blog feed or get updates via e-mail
DebtFree on November 11, 2009 12:39 pm
Isn’t the “last listing price” of little value?
Perhaps a house was on the market a few hundred days, and the price was reduced 20-30% or more before a buyer finally came forward.
Such buyers let unrealistic sellers twist in the wind, until reality takes hold, and price reductions follow.
So that last listing price doesn’t mean much in my book.
DebtFree on November 11, 2009 12:54 pm
Also take into account relistings, which change the MLS number and hide the underlying nature of the market, as only the information from the last listing (price and days on market) are reported by the NAR.
Therefore that “last listing price” may actually be from the 3rd or 4th listing.
Michael Masouras on November 11, 2009 1:49 pm
Have you got your numbers inverted? A 8.1% difference from list to sale price indicates that the buyer paid more, not less for the property.
Katie Curnutte on November 11, 2009 1:54 pm
Hi Michael,
We’re representing the discount from list to sale price, so if it’s negative, that means the buyer paid more than list price. Sorry if that’s confusing. You can see the raw ratios here, if you’re curious:
http://www.zillow.com/local-info/#metric=mt%3D17%26dt%3D1%26tp%3D5%26rt%3D14%26r%3D102001%2C394913%2C394806%2C394463
Goldeneye Morning Paddle – 11/12/2009 « Goldeneye Asset Management on November 12, 2009 7:39 am
[...] Zillow.com reports on slightly improving closing price to list price home price ratios in its September real estate market report. [...]
Sarah Spillman on November 12, 2009 5:48 pm
Wow. Your blog’s yahoo ranking is impressive for several different keywords! What do you guys do for SEO?
John Sweeney on November 12, 2009 5:56 pm
where’s my post?
Carnival of Real Estate #166 on November 16, 2009 10:28 am
[...] Sellers Gain Tiny Bit of Traction in Sept., but Buyers Still Negotiating Thousands Off Home Prices – Katie Churnette of Zillow.com The negotiating power of homebuyers slipped a tad in September, but buyers in most markets were still negotiating thousands of dollars off the last listing price of homes. Buyers nationally negotiated a median 2.9 percent off the final listing price… [...]
Orange County Photographer on November 17, 2009 1:02 pm
You’re certainly right about California markets, I live in Murrieta (Riverside County) and have watched some of the homes in my neighborhood get 12 offers- the bank just takes the highest qualified. My next door neighbor lost his house when the bank wouldn’t negotiate anywhere near what he wanted to mod his loan for (they never really do, do they?) He got mad and ripped out his custom stuff (a lot) from the sink to the toilet upstairs, light fixtures, stove and oven, you name it) leaving the house pretty well stripped. Sure enough it got a cash offer and is now lived in by a very handy guy (more capable than me). On the other hand, the house across the street has been empty for 6 months. I just don’t get this crazy market. It must be a function of the particular bank/crashed bank? that owns the property.