We get asked these questions all the time: How much under list price should I make my offer? Buyers are asking us, what kind of deal can I get? Sellers have questions too, they are curious about how they should respond to a low offer. We track data to help answer those questions, and this video tells you a bit about it. Here are the basics.
While each seller has different motivations, appetites for negotiating and different time constraints, we do track list to sale price ratios so we have a baseline for our clients to work with. Keep in mind these ratios will vary depending on what area you are looking in, and what price range.
We track two different metrics. First, current list price to sale price ratio. So when a property goes under contract, what percentage of the list price does the seller accept. The other, and potentially more important metric, is the sale price to original list price ratio, the price it originally came on the market at? The difference between the two? The second one takes into account price reductions over time, the first doesn’t.
Taking a look at all price ranges in Anacortes, seven of the last twelve months had a 99% sales price to then current list price ratio. So just a 1% discount from the listed price. If you look at the other metric, sales price in relation to the price the home first came on the market at, the last seven months ranged between 94% and 97% sales price to original list price; a 3-6% discount. These are just averages, and these discounts will move with the market depending on supply and demand and as we migrate between a sellers market, a neutral market and a buyers market. These averages will also vary for different towns and even neighborhoods within towns. Finally, the discount varies from price range to price range.
So if you are looking at buying, or selling, and want to know the average discount rate for the area and price range you are interested in; get in touch with your favorite Windermere agent because like I said before, we track these metrics so our buyers and sellers are best positioned with all the information to make their buying and selling decisions.
Take a listen to our January market update for a taste of what’s been going on in the Anacortes home market. You will hear a bit about what’s happened since December, how we are looking compared to 2018 and a bit about where the market is headed for 2019. While the information given is based on the overall market, we are happy to break down what’s going on in your specific price bracket or neighborhood, just give us a call or shoot us an email. We also have similar statistics and market information on all areas of Skagit County and with offices in Mount Vernon and Sedro Woolley, we’ve got you covered no matter which town you live in.
Thank you for listening!