"What percent of list price will my home sell for?"
This question undoubtedly comes up with every client we work with. Even buyers ask what percent of list price can they offer on a home. Unfortunately, there is no magic formula that gives us a predictable answer every time. There are just too many variables; the biggest of which is how accurate the list price is to begin with. Having said that, I still can point to some trends to give you an idea of what to expect. According to data from the previous calendar year obtained from the Regional Multiple Listing Service this is the trend...
As you can see it is important to price your home correctly at the start. I think the real trend in our market in Prior Lake and the Twin Cities is that a home will hit the market and if it has the right price and condition it WILL get multiple offers or at least an offer within the first couple showings. If the home is not the right price, today's savvy buyers (thank you internet) will blow it off and it will sit and gather dust while prices all around it continue to fall and the percent of list price received will be quite the ugly number.
I could go on and on about pricing, but many folks just want me to tell them the average so here you go. Across the Twin Cities for the years ending in August 08, 09 and 10 the percent received for traditional (non-distressed or bank owned homes) was 93% each year. Prior Lake has moved up to 94% for Sep. 09 through August 2010.
Percent received for foreclosures has gone up each year in the Twin Cities and Prior Lake going from 88% in 2008 up to 95.5% ending August 2010. Banks continue to try to unload properties quick and price right from the start and there is a glut of investors out there looking for the lower end rehab potential homes.
If you are a buyer though and have the patience to try and see a short sale through to the end, In Prior Lake you can expect to get a deal at 85% of the original list price which is down from 91% two years ago.
As you can see, I like numbers.