Scottsdale Real Estate – What’s a good offer?

All home buyers seem to be asking this same question in today’s market: 

What’s a good offer?

In the past, the sale price averaged 3-5% below list price, but in today’s real estate market, one would think that these numbers might have changed. 

Recently, I represented a buyer, (we’ll call her Sue), where the home she was interested in was relatively new to the market, but priced well above the current comparable homes sales in the surrounding area.

Sue’s offer of approximately 10% below listing price was presented, and I was able to document for the not-to-happy seller’s agent how the buyer had determined her offer price.  The seller countered with a price that was still too high for Sue, who opted to keep on looking for her home.   Several weeks later, the house was still on the market, and my client asked me to present essentially the same offer.  This time the seller accepted. 

Curiosity piqued, I computed some statistics for a couple zip codes around Scottsdale, just to get a feel for where home sales prices were, as compared to the most recent listing price.

Sampling of Scottsdale Real Estate Sales Price as a Percentage of Listing Price for March 16 – June 15, 2008

Interesting that we are hearing about all the low offers, and in reality are seeing some houses are selling for more than they are listed.  What is even more telling, is that the average selling price of 4-6% less than listing price is not all that far off than the metric that we’ve been hearing for years.

So, when you find the house that you are ready to buy, do your research.  Make an offer that’s realistic for the market, and for your budget.  The seller’s response will tell you how close you are to crafting an agreement.  And then, you can decide what your next steps are. 

As always, your comments and questions are welcome.