I have a question for real estate agents?

Question

On HGTV, they were saying that the houses in an area were saling for %3 less than the asking price. Of course that show was from awhile back. With the market the way it is, I was curious as to what that number would be now. Does anyone know how to find something like that out? I am moving in metro atlanta Ga so if someone does real esate there, that would be even better.

Thanks

Answer 1

A Realtor in Atlanta will be able to assist you with this question.  In my area, houses are selling for within 5% of asking price, but that number is inflated due to seller concessions.  

Answer 2

Dont' listen to anything on HGTV regarding home values.  They are grossly inaccurate, and those episodes are filmed mostly in California and New York, where it is ANYTHING but representative of the rest of the country.

It doesn't matter what it used to be.  It matters what it is right now.

Answer 3

I am a Realtor in Tennessee serving 11 counties surrounding Nashville.  While specific location and local economy are always prime contributors to the overall strength or weakness of the real estate market, many other factors also influence the differences you will see in list prices vs. sales price for a given area. For instance, if you are buying in a neighborhood that has had an excessive amount of recent foreclosures or a ton of available inventory competing for the same buyers, it would not be uncommon to see a larger gap between the list and sales prices for that neighborhood as opposed to the hottest, most desirable neighborhood, where things might even be selling for more than list (even if these two neighborhoods exist within the same county).

Before writing an offer on any property, make sure your Atlanta agent provides you with a report showing the recent list vs. sales prices over the last 6 months in the neighborhood(s) or zip code(s) you are considering.  In my area, we call this a CMA (Comparative Market Analysis) or running the "Comps."  Realtors typically provide this information free of charge, and you can request it by e-mail so you can start doing your "homework" before you make the trip to buy. Keep in mind that this type of information is only intended as a rough guide though, because the overall condition of a property also has much to do with the pricing.  Hopefully, you'll get at least 7 to 12 recent sales that will show you a trend on the market for that area so that you can derive more reliable averages.  Information is power, so don't be afraid to ask your agent a lot of questions about the market trends and appreciation before you buy.

Best wishes on your search for a new home.  Hope you enjoy living in metro Atlanta!

Answer 4

I am a loan officer -

It depends on the market where you want to buy a home. Real Estate is a very regionally specific investment. What happens in Atlanta may not necessarily be happening San Francisco. Don't listen to T.V. too much since the information is not very accurate. Regardless of all the negativity in the press we currently see markets where buyers are meeting sellers at the list price of a home. In some cases we have multiple offers on homes since prices have come down so much in certain areas. Buyers are paying attention to value and are now jumping on this once in a 20 or 30 year opportunity. Good Luck

Answer 5

Location, location, location

Depends just what neighborhood, what school district, what community, what metro area?

And that is an average, so some go higher, some go lower, and statistically it's probably not outside the error range

Answer 6

You must get the reason why any one particular house sold for more or less than compatibles in the area or the original asking price. There are dozens of reasons for selling either above or below:

Why in my experience it sold for less:

1. Owner just one breath away from foreclosure.

2. Engineer for IBM (I've Been Moved) was relocated, must sell quick.

3. Couple got married, both homeowners, husband had to sell his.

4. Needed major repairs, neglected (deferred) maintenance.

5. Long time homeowner always thinks their house is worth more regardless of comps in the local market.

6. Bought new home, doesn't want to pay two mortgages.

Why in my experience it sold for more:

1. High demand area

2. Received multiple offers (yes, it's still happening even today in my area, Saratoga CA, Cupertino CA, Palo Alto CA!)

3. Just completely remodeled interior with top of the line materials.

4. Seller kickback to buyer portion of the sale price.

Each home is different even if the same tract home next to each other. A 3% difference is negligible for real compatibles.