When we go to Basha's or Fry's and we see the price of an item, we either buy it, leave it, or look for a brand a bit cheaper hoping that our taste buds can't notice the difference.
Just an FYI, after 45 years I can say that you should never sacrifice on pancake syrup, cereal, and chocolate syrup. Sorry, name brands only. (Aunt Jemima or Log Cabin, Kellogg's and Hershey's)
Back to the subject at hand, if you pick up a can of soup priced at $2.00 and you walk to the cashier and pay $2.00 + tax, you WILL get the soup.
Real estate is a bit different, especially if the price is $200,000! If a home is priced at $160,000, you can offer asking price, under asking or over asking, or a combination with some seller incentives. One reason to maybe over bid would be on an auctioned home that was priced under market value. If you are the seller of the home using companies for property management marketing, can help put your house out there better so you can get more offers.
So lets talk turkey. We need a few parameters. Let's focus on homes that sold only in the months of November and December 2014. It is a slower time of the year, but if we go back much further than that, other factors come into play. Another parameter is that we use only "track homes" or homes in the HOA subdivions. Horse properties and historic district are not factored in.
There were 146 homes that closed in November and December
Here are a few definitions for the numbers below
Original list price- the price the home was listed for on the 1st day of the most recent listing (this time for sale, not in 2006 or 2007)
List price-the price the home was at when it went under contract
Sales price- the final price the home sold for. If the home sold for $150k but the sellers paid $2,000 toward buyer closing costs, the sales price is still $150,000. The concessions figure in after that!
DOM- Days on market
Lets just work with the "Average prices"
Of the 164 homes that closed in Nov and Dec, original list price was $173,552
81 of the homeowners dropped their prices and the average home was $167,800
The final tally is sales price, this is the amount of the home at closing. Average was $163,617
Average days on market was 106 days.
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