You have found that perfect home! It has beautiful landscaping, vaulted and tray ceilings, crown molding, granite bathrooms and a kitchen every chef envies! So, what do you offer for the home? Every client asks this very question expecting their agent to provide professional and valuable insight.
To be a successful Realtor agents must constantly follow the housing market, utilize various negotiation techniques, and apply tricks to acquire knowledge about sellers and buyers in order to determine the final selling price for a home. Almost every home sold has a final price below the listing price, but on average how much below list should a buyer and seller expect to “seal the deal”?
The market and housing inventory has a large influence on the final sales price of a home. When fewer homes become available some will begin to receive multiple offers. The difference between the sales price and list price will decrease. Thus, what values should a buyer or seller expect once negotiations begin?
The Real Estate Center at Texas A&M University considered this very question. The results were extremely interesting.
During the dot-com boom of the late 1990′s the average spread between the list and sales price of a home dropped to below 1%. During this era many homes sold above list price. Once the dot-com bubble burst there was an immediate uptick with averages jumping to over 4%. Eventually this trend started to reverse with the housing boom during the mid 2000′s. However once again the bubble burst resulting in another uptick in the spread with it reaching levels of over 5%.
Over the past several years the spread has once again begun to decline. As previously reported in our market analysis sellers in Houston and surrounding areas are witnessing multiple offers so our prediction for 2014 is an average down near the 2% level locally.
Since actual values fluctuate by neighborhood CCLR advises all buyers and sellers to seek out a licensed Realtor. They are the best source when determining the actual value of a home.