In a down market, there’s a truism that you offer a price under the asking price, assuming that the seller is hungry.
On the other hand, Frothing Developer has noted that a lot of the foreclosure “deals” are going for considerably more than their lowball offer prices.
We decided to take a closer look. We took all 3036 closings in July, and averaged their differences between list price and asking price. The result was interesting.
For units that sold for under $500k, the average unit sold for $2,888 less than the asking price.
For all units selling under $1m, the average unit sold for $3,855 less than the asking price.
For all units selling in July, period, the average unit sold for $5,326 less than the asking price.
1,220 of the 3036 units that closed in July closed higher than their asking price. That’s 40%!
I’d rather see all of the units selling above ask, but the fact that the average sub $500k unit sold for only $3k less than ask is a good counter to obsolete expectations that you can “low-ball” the seller in Las Vegas’ “down” market.