Numbers Don’t Lie
Real estate is by nature a speculative market. But all speculation is rooted in documented events. The CMAs (comparable market analyses) tell the story. We use CMAs faithfully, both when helping sellers set prices and when helping buyers determine offer prices and terms. For instance, an analysis of 50 Direct Access (sailboat) single family homes listed at $500K-$900K and that sold in the last 3 months shows that they, on average, sold at 95% of list price. In many cases, that was after a price decrease.
Again, it’s important to remember that the prices were set too high; most of the decreases reflect an appreciation expectation adjustment.
To get to that negotiated price, the buyer likely started at 10% or more below the asking price. Seller’s almost always counter, and the buyer counters the counter. And so the process goes until, more often than not, both seller and buyer are happy with the price and terms.