Sellers are able to negoiate more money back into their property according to a national study. (art by ilker)
A recent press release by RIS Media and Zillow has announced that the buyer’s advantage in today’s real estate market continued to decline in August. But will it maintain in Delaware, Ohio?
According to the national study, the average amount of negotiation is 3% of the final listed price. Okay, so what does that mean? If the home is currently listed for $150,000 then the average home will go into contract for $145,500 with the buyer negotiating $4,500 off the final list price.
That 3% in August was down 3.9% in July and down from the highest market of 4.5% in January 2009. Some places in California are actually seeing average sales price exceed final list price and spots in Florida – particulary Vero Beach – are still seeing nearly 9% in negotiating on the price.
However, as the selling season draws to a close and the inventory of bank-owned property continues to rise it is very possible that the gains in July and August will be given up in October and November as the number of buyer’s continue to slide.
“Negotiating power is a clear reflection of inventory levels, which dropped nationally in August. Tighter supply in some markets is translating into less of a discount off listing price,†said Zillow Chief Economist Dr. Stan Humphries. “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.â€
