What is a realistic offer in this market? Clients come to me all the time and say, "I WANT A DEAL." The media talks about all the great deals in real estate- and there certainly are bargains to be had! You may find good buys on properties priced 50% below what the property previously sold for However, here is the reality:
SELLERS ARE NOT ACCEPTING OFFERS 50% BELOW ASKING
Buyers need to be realistic and study the local statistics when making offers. There are numerous issues to consider when making an offer, among them, the days on the market, comps, the condition of the property and location. Do you really want to purchase a property? If so, the buyer's goal should be to make a reasonable offer that a seller will respond to, and that could actually turn into a negotiated acceptance.
In the city of Palm Springs, here are the stats since August 08 from the MLS:
Condos
# of Sales Average Days on the market Avg Sales price as % of Asking Price Lowest % High %
131 111 94.4% 70% 117%
Single family homes
144 111 94.06% 77% 119%
As can be seen, no deals were accepted below 70% of the asking price. The average is 94%. And in some cases, when properties are priced well, they are selling at over the asking price, with multiple offers.
YES you can find a great buy in today's market. There are DEALS to be had. Prices are the lowest they've been in 5 years! My goal as your agent, is to negotiate that excellent buy for you. However, start the process with realistic expectations. Maybe you'll buy a property at 95% of asking price- that's still going to be 50% less then what it was valued at 4 years ago and you'll be walking away with the buy of a lifetime.
Contact me today at paulkaplan5@aol.com or call at 760-285-8559 and let me show you what great deals are out there in today's bargain priced market.
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