Home Buying in Racine>Question Details

Jjohnson, Other/Just Looking in Waukesha, WI

In general, how much under asking price are people paying for homes that are not short sales or foreclosures in Racine, WI? I know it depends on many

Asked by Jjohnson, Waukesha, WI Wed Apr 14, 2010

factors, so I am just looking for an average. Thank you!

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On average so far this year, homes are selling at around 93 to 95% of list price. Keep in mind that this is an average: Many homes have sold at or even above asking price, while many others have seen larger discounts. The key boils down to 2 things: the strength of your offer (financing terms, timing issues, etc); and the seller's situation (are they moving out of town? do they own 2 homes, etc.). Every real estate transaction is different and unique. My advise is not to be guided by market averages but, rather, by your experiences. If you have looked at a number of homes and fall in love with the home you are offering on, do whatever you need do to get it. The difference of even a couple thousand dollars over a 30 year mortgage is pretty insignificant in the grand scheme of things.
2 votes Thank Flag Link Wed Apr 14, 2010
There may be a mathematical average. Who knows? 8%? 5%? 2%? Maybe they're paying above asking price. I can identify areas where homes are, on average, selling for more than their asking prices.

It really, really, really doesn't matter what the mathematical average is. Not unless you're an economist doing research.
2 votes Thank Flag Link Wed Apr 14, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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I really don't believe in averages. I have seen homes for over asking price and under asking price anywhere from 2% to 25%. If you are working with an agent and you find a home that you wish to make an offer on, you would ask him or her to do a cma in the area. That will be helpful, however, still not the deciding factor. Some people will take say 3 homes - one is $150,000, one is $200,000 and one is $300,000. Then they add them together and divide by 3, giving an average selling price of $216,666.....

This calculation simply does not work in real estate. As you said yourself, there are many factors involved in deciding on what you should offer on a home.
1. What do you qualify for?
2. How does the home suit your needs?
3. Does the location make sense for you?

I could go on and on, but the bottom line is..........you might pay $150,000 for a home that someone else would be willing to pay $175,000 for.

What you do need to be concerned with is what is the appraiser going to think it's worth -that is, if you're getting financing. No matter what you think it is worth, the bank must agree or you don't get the loan.

And keep in mind that the value of conventional sales in Wisconsin are being brought down by the surrounding sales regardless of whether they are shortsales or foreclosures.

Hope this was helpful.
Linda
Web Reference: http://www.lindacefalu.com
1 vote Thank Flag Link Fri Apr 16, 2010
Excellent answer! Well thought out and easy to understand.

Diana Dahlberg, 1 Month Realty
Flag Sun Apr 29, 2012
Every city does have a different average, around the Madison area it has been running about 95% of asking price.

In the end, each property should be looked at as individual since so many factors go into the average. The home you may be looking at may be 5% under market value already or it may be 15% over. It may be in perfect condition is may be run down and on and on.

Remember in most cases this average is taken from final asking price before an offer is accepted, many homes have reductions from list date up to accepted offer date. A good Realtor will treat each home on an individual basis since averages don't tend to mean a lot when you realize the endless amount of factors that make up that average.
1 vote Thank Flag Link Wed Apr 14, 2010
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