There’s a lot of power in knowing what others are doing in the current real estate market. Two import metrics that I watch are “Sale to List Price Ratio” and “Days on Market”. These can help to gauge the temperature of the real estate market and help buyers and sellers to prepare for contract negotiations. If you know how much others are haggling on their contract negotiations, you have a better sense of how far you might be able to go as a buyer to reduce the list price. Let’s look at some current data for Boone County, Missouri:
Sale to List Price Ratio
The Average Sale to List Price and Average Sale to Original List Price ratios are both down slightly, at about 97.2% and a hair over 95%, respectively. Buyers are offering less, and sellers giving away more, to make the deal work. The difference between these metrics is that, in the latter, the seller has already recognized a need for a price reduction and acted on it. As a buyer, I’d feel pretty happy about the potential to save $10k on a $200k listing, and I’d let that potential inform my negotiating strategy.
The more I look into the current market as it stands today, the more clearly I see it leaning in the buyer’s favor.