As you’re searching for your Charlottesville area dream home, you’re seeing new homes come on the market, other homes sell, and some homes drop in price. You’re probably searching in a specific price range, but you’re probably also searching just a little bit higher than your maximum price, because you know that home prices are negotiable, so you should be able to get something off of the list price.
Just how much should you expect to get off of the list price of the house? What should you offer on homes so that you are reasonable and don’t risk offending a seller or wasting your time, energy, and effort making an offer on a home that you could never afford?
We’ve got some data that might help answer those questions. . .
Understanding List Price vs. Sold Price
The metric we want to use to determine what you can reasonable expect to get off of the price of a home is the “list price vs. sold price.” What this tells us is how much homes are selling for, compared to what they are listed for at the time of the contract (on average).
This number is always expressed as a percentage. So, if a home is listed at $300,000, and sells for $290,000, the list price vs. sold price would be $290,000 divided by $300,000 or 96.67%
Charlottesville Area Real Estate List Price vs. Sold Price
Now that we know what we’re looking for, let’s take a look at the list price vs. sold price in the Charlottesville area real estate market right now.
The following chart plots the percentage value of list price vs. sold price for the Charlottesville area real estate market over the last 12 months:
As you can see from the chart, the metric has hovered around 94% for the last 12 months. The high was 96.54% in June, and the low was 92.91% in November of 2014. So far in 2015, homes are selling for and average of 94.55% of their list price in the Charlottesville area. In terms of practical numbers, this means that a home listed for $300,000 is likely selling for somewhere around $283,650.
Obviously, each home is different, and there are even variations between areas or even specific neighborhoods. The 94.55% reflects the average across the entire Charlottesville area.
How Does 2015 Compare?
If we take a look at how the list price vs. sold price of the last 12 months compares to previous years, we notice a trend. . .
When we look at the chart above, which displays the list price vs. sold price for the same 12 month period of the last 5 years, we can notice a trend– the average list price vs. sold price for 2015 is higher than it has been in years past. This is a good indication that the Charlottesville area real estate market is not only healthy, but also that prices are rising slightly, not falling.
So the question remains– Can you low-ball your Charlottesville home? The data indicates that you can expect to get the house for around 95% of the list price, so the answer is. . . it’s probably not the best idea.
The trend of the list price vs. sold price indicates that the Charlottesville area real estate market is a healthy one in which prices are rising. That’s something to take into account when you sit down to write a contract and need to determine what your initial offer is going to be.
We’re Here to Help
We love talking to our customers and clients about the Charlottesville real estate market and their specific needs. As we mentioned, this is a general overview of the entire Charlottesville area, so if you’d like information about the list price vs. sold price (or any other market data) in a specific area or neighborhood, just let us know. We’re always here to help.