Today’s Talking Point 10/12/09
The Practice of Factoring in Room for Negotiation
There are times that sellers try to convince us that they must list the price higher in order to factor in a ‘cushion’ for negotiation. Let your sellers know that so far this year buyers are coming closer and closer to asking price when they put in an offer.
Buyers paid a median of 97% of the last listing price for properties in August. That is more than the median 96.7% buyers paid below asking price in July and more than the 95.5% they paid in January according to the latest Zillow Real Estate Market Report.
“Tighter supply in some markets is translating into less of a discount off listing price…Unfortunately, the brisk spring and summer home shopping season is drawing to a close now, and with foreclosures on the rise again, inventory levels will likely head back up in the coming months, leading buyers’ negotiating power to regain the ground it lost in August.” – Stan Humphries, Zillow’s chief economist
Don’t allow the homeowner to price the house too high thus causing it to not even be shown. Currently, the buyer is looking for a home priced to reflect the market and when they find it they offer close to asking price.