Every once in a while, I fall down a statistical rabbit hole. And today was one of those days. I had another agent who was trying to figure out how to explain to their client about why the low
Negotiating In Southern Oregon
Different areas in the country have different ways of negotiating sales prices.
For example, in the Bay Area recently, the listing prices have been artificially low to encourage bidding wars. So List to Sales price can be way over 100%
I have heard of other areas that list the houses high, knowing it isn't uncommon to take 75% of the list price.
So it is important to know the area and the norms when working on negotiating. So your expectations are set appropriately.
Our market typically sees all home sales occurring between 95-100% of asking price.
The breakdown for 2017 for houses in Jackson County between $200-400,000 is this:
0-30 days 99.36% 1450 houses sold
31-60 days 98.06% 337 houses sold
61-90 days 97.78% 180 houses sold
91-120 days 97.74% 122 houses sold
120+ days 97.39% 169 houses sold
Note that in that price range, almost 65% of the houses sold in the first 30 days. So in a competitive price point, one needs to be ready to make an offer quickly. Which might get you thinking about what it looks like on the upper end of the market. Interestingly enough there is statistically more negotiation rooms in the upper price ranges. This is how it breaks down for houses priced over $800,000
0-30 days 98.16% 31 houses sold
31-60 days 97.97% 5 houses sold
61-90 days 98.58% 5 houses sold
91-120 days 92.09% 7 houses sold
120+ days94.00% 24 houses sold
So think about that.
A house priced at $300,000 that has been on the market for 100 days statistically will sell at $293,000 or $7,000 less than asking price.
A house prices at $1,000,000 that has been on the market for 100 days statistically will sell at $921,000 or $79,000 less than asking price.
And just because I recently ran the numbers, one more set of stats.
0-30 days 99.02% 62 houses sold
31-60 days 98.39% 25 houses sold
61-90 days 98.49% 16 houses sold
91-120 days 99.43% 12 houses sold
120+ days 99.34% 20 houses sold