"How low can I go?" Haven't we all heard that question? How many times I would send information to customers about the least expensive properties in their price range, only to get back an e-mail saying that the market is down and they do not even think of offering anything close to the asking price.
How low can you go? The legend is that in Florida you buy for 50 cents on a dollar, so some «investors» are trying to offer not more than 50% of the asking price. They ignore that asking prices are already 50-60 cents on a dollar compared with prices just a few years ago.
So, here is how it is in real life. Here is a real list of condominium units sold in Aliki Condominium and Ocean Ritz Condominium in Daytona Beach in 2010 and 2011. It is arranged by the sold price.
I added the column showing the difference between the asking and sold prices. So, if it is 94%, it means that buyers paid 6% less than the asking price.
As you see, the average actual price was 92.6% of the average asking price. I excluded the penthouse, as it could create a false feeling that this gap is even narrower, but it was a two level penthouse unit and it was sold for way more than the asking price.
And if the actual sale price was 92.6%of the asking price for condos on Daytona's Beachside (and keep in mind that this number can be different for homes, and be different for different neighborhoods), than it means that you have on average a good chance to buy a property with a 7.4% discount.
So, how low can you go on this $200,000 condo? On average $185,200. So, what is a good starting offering price would be? Maybe about $180K. But what if you want to write an offer for $150,000?
Maybe you are a writer, not a buyer. Writing offers can be fun, but the difference between a writer and a buyer is that a writer creates a fictional reality, while the Buyer understands the «real» reality. Of those two it is the Buyer, who buys a house.
Writers live in the castles of their dreams... Of course, those castles are very nice and exquisite...
Buyers, call me 386-405-4408. Reality is good for you now. As good as prices. Not only in Aliki and Ocean Ritz Condominiums in Daytona Beach.
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