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Purchase Price versus List Price


skyblue

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Hello, everyone, I have lurked here sporadically for three or so years. I have seen a few news reports indicating that the Houston-area housing market has suffered no real consequences of the economic downturn. Some areas have homes listed for higher prices now than a few years ago. For example, homes in olde oaks that were listed for $189-199k in 2006-07 are listed for $220-240k in 2009 with no updates. To my surprise I have seen a majority of them sell at close to the current higher price. Seems like foreclosures or shortsales are the slim opportunities to get somewhat of a deal. I realize that several variables affect final purchase stats but this topic is for interest sake and not to get prohibitively technical. What year did you or a friend purchase your homes and what was the percentage of the purchase price to the final list price? If you can share general location information, that would add an interesting tidbit.

What I know is

4bed/3.5bath/~3800sf/less than 5 years old was purchased this year for 79% of list price but it was a foreclosure in the northwest

4/3.5/>4000sf/couple years old was purchased this year for 101% of list price but it was also a foreclosure in richmond; worth every penny IMO

I don't have any first hand knowledge of regular resales right now but I do know a couple others on the market. When I watch housing shows on HGTV, it seems that most everyone is paying within 3% of list price and it makes me wonder whether buyers actually really ever negotiate.

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Almost all homes that sell are priced right to begin with (or eventually with price reductions), negating much of the need for negotiation. Surprisingly Desirable neighborhoods do not sell that much higher to the list price, if at all.

Timbergrove Manor all sales in 2009 averaged 95% or the purchase price. The lowest was 42% - a forclosure with hurricane damage (sold post hurricane w/ pre hurricane price). The highest was 102% but includes sellers contributions to closing costs which kicks it down to 100%. Avg in 2006 was 96%

River Oaks all sales in 2009 averaged 95% with 80% being the lowest (141 DOM) and 102% the highest (sold in 1 day). Avg in 2006 was also 95%.

West University was 95% in 09 and 98% in 2006

Kashmere Gardens in 08 & 09 averaged 87% with foreclosures leading the pack.

South Lawn in 08 & 09 averaged 94%

Riverside Terrace in 08 & 09 averaged 96%

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The most ridiculous negotiation of all time was 5510 Crooms. Foreclosure asking $220,000, was an obvious steal which had probably close to 60 showings in 2 days. Needed some repairs and updating. Nothing unique or impressive about it. Sold for $410,000! The second highest bid was somewhere around $250,000. I have never even heard of a home in LA going for double the asking price! Anyone else heard of someone paying double?

Edited by rbarz
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Typically homes that sell within 60-90 days are priced very closed to market value and do not require a lot of negotiating on sales price. Negotiations can be more complicated on repairs and seller contributions.

Buyers need to look at sold comps from the last 6 months and roughly within a 1/2 mile radius to determine the value. This is the basic criteria that an appraiser will use.

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The most ridiculous negotiation of all time was 5510 Crooms. Foreclosure asking $220,000, was an obvious steal which had probably close to 60 showings in 2 days. Needed some repairs and updating. Nothing unique or impressive about it. Sold for $410,000! The second highest bid was somewhere around $250,000. I have never even heard of a home in LA going for double the asking price! Anyone else heard of someone paying double?

Funny you brought this one up because I was one of those interested parties but I had no idea that it sold for almost double. I want to avoid that buyer's agent like the plague.

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I paid about 86% after hard negotiations. I'm in the Heights.

Interesting. I don't know about anyone else but the few times that an agent has given me a list of comps, the properties all sold for at least 97% of list price. I was suspicious of those comps for that reason.

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Interesting. I don't know about anyone else but the few times that an agent has given me a list of comps, the properties all sold for at least 97% of list price. I was suspicious of those comps for that reason.

Not including the $5k we bartered because we had no Realtor, we would have paid 97% of list price (not counting a $10k reduction just before we decided we had serious interest in the place).

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  • 2 weeks later...

We're still in the option period, but after some negotiation, the seller accepted our offer of 92% of asking price in Mason Park. I actually think that was a little high, but our realtor thought it was fair. We were absolutely unwilling to pay more, as the house needs work and updating.

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  • 2 weeks later...

In August we paid a tiny bit over asking price in the Heights. Turned out we were spot on, as I later learned a good friend had also put in a bid. Her bid was right at asking, which she decided to do after the seller/agent conveniently left the paperwork for a third offer on a desk in the house. So there were three offers for the house- one was 1% below asking, one was 100% of asking and ours was 101% of asking. We decided on 101% since we were tired of looking and ready to be settled. Also, we moved to Houston from the San Francisco Bay Area where 130% of asking was not uncommon...and the house here was still super-cheap compared to what we were coming from!

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Paid about 90% of asking last month (plus a few seller concessions) - turns out it was about 84% of an original asking price I found out about later. SE Houston.

I sort of gathered from your posts that you were looking and buying. Awesome! Welcome to the money pit. So glad you found your home!

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