tlw, Other/Just Looking in 19104

What is the average difference between the listing price and the selling price?

Asked by tlw, 19104 Mon Feb 25, 2008

Is there an expected % difference that buyers can use to generalize how expensive of a house they can shoot for? Does it depend on whether it's a sellers or buyers market? I'm just starting to explore the idea of buying a house in Philadelphia (it's likely it won't happen until 2009) and I'm a first-time homebuyer.

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There really should not be any differance between the asking and selling price if the seller listens to the real estate agent. But, for this question, most of the properties in the area are within 5% of what the seller asks. It varies from area to area and is dependant upon what kind of inventory is out there as well as the demand. I have even seen properties go for more than their asking price when the property is priced properly and several buyers want the property.

You need to get in touch with an agent in order for you to make the proper decisions needed. They will be able to tell you how much a particular property should cost before you make any offers. Find an agent near you and start working with them now. This way, when it is time for you to purchase a home, you will be fully prepared.

Hope that helps.

Terrence Charest, e-Pro
Century 21 Associates
905 Easton Road
Willow Grove, PA 19090
Cell: 267.614.1494
1 vote Thank Flag Link Mon Feb 25, 2008
You truly need to research each home that you are serious about potentially making an offer. In my experience there is not an across the board percentage deduction of listing price that is acceptable to determine selling price. For example some homes are priced well from the start or perhaps even priced below market value & these homes should in theory sell much closer to asking price & do. If you applied a uniform percentage deduction to all homes you could end up even overpaying or pass up a good deal thinking they wouldn't negotiate off their asking price.
2 votes Thank Flag Link Mon Feb 25, 2008
Ask your realtor to show you comparable sales for the past 3 months, and you'll get an idea of what an area is worth. The way the market is, to go back prior to 3 months ago will give a false sense of worth. Homes have, for the most part grown stagnant in value, and in many cases, are decreasing in actual selling price. I'm not a realtor, but am a VERY recent buyer. I looked around for 2 months, and then bought a 190000 list for 176000. Remember, a realtors pay is a percentage of the selling price....Its not in their best interest to tell you that you can bid low....Stick to your guns, you'll know the right house and price when you find it..
1 vote Thank Flag Link Mon Mar 3, 2008
Usually it's between 5 to 7% in a good market.
1 vote Thank Flag Link Mon Feb 25, 2008
Average has no place in real estate. As a buyer, you wouldn't buy an "average" house would you? No, you would buy a house that you like, that to you, is special and not average. This is after all why you are looking at houses instead of fliping a coin and buying some "average" house. So, why would you expect to have some fixed % rate by which sale price differs from list price for houses when each one is different and unique?

In general, since we are in a buyer's market right now, in many sale price is lower than list price, not by some average % though. It depends on a house, why is it being sold and why would people buy it, as well as on where did original list price come from. If a house was overpriced, sale price will be lower than list price, if it was priced right than sale price might be higher. You can't just generalize.

PS: Of course id depends on if it's seller or buyer's market, simple demand and supply. In a sellers market when you get 5 offers from an open house, if your offer is below list price they probably won't even talk to you, today many people are just happy to get an offer at all. So you as a buyer have a negotiating power you didn't have a few years ago.
1 vote Thank Flag Link Mon Feb 25, 2008
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