Average List Price vs Average Sales Price in Tallahassee
Buyers often ask about making “low-ball” offers. “Everyone is doing it,” they say. Well,.. no they may be, but how many are actually accepted? While you may consider making a low ball offer, consider this: the seller may not be in a position to accept that kind of an offer, and now they are not happy with you (you can’t negotiate well with someone you just punched in the pocketbook!). Usually, your Realtor will give you good advice about this. REO and bank owned properties have already gone through appraisals, bottom line pricing in order to move, and a buyer may very well miss out on a bargain by trying to get an even lower offer on the table. Oftentimes, other offers come in, and you have lost your window of opportunity. SOLD!… to someone else.
When considering an offer, consider this: Do you love this home? Can you see your family living here and making this home your own for at least 5 – 7 years? Are you willing to make repairs, or do you need a home in move in ready condition? That is 3/4ths the battle, right there. The remainder is: Can I afford the offer I want to make and the price that I am willing to negotiate? Simple. Quit listening to the media, the tv, and make sure you are working with a professional Realtor to give you solid investment advice. Every area is different. Generalities about national home sales stats do not apply to local markets.
Here is an interesting chart that compares the average list price of Leon County detached single family homes that have sold versus the average sales price of these same homes that have sold.
In 2007, the average sales price was $257,510 which is 96.93% of the average list price, $265,668.
In 2008, the average sales price was $242,603 which is 95.57% of the average list price $253,843.
In 2009, the average sales price was $216,837 which is 95.57% of the average list price, $227,626.
These statistics demonstrate a couple of important points. One is that our area sellers and Realtors have done a good job setting prices that reflect market conditions.
The statistics also show that on average, sellers are getting roughly 95% of their asking price. This means sellers are not accepting those “low ball” offers we often hear about .
Remember, the tax credit is not likely to be renewed, at least that is the word from the National Association of Realtors who is lobbying for this. The government will not be buying notes anymore.. and the private sector will be making your loans. That means, interest rates are going to climb and you will not be getting that tax rebate folks. Be warned,.. if you are on the fence.. you have about 6 weeks to shop before the tax credit ends. April 30th, you have to be in contract, and closing before July 1. Don’t delay.
Out of my area? Call me for a referral today!
Debbie Kirkland, Realtor
Armor Realty of Tallahassee