Percentage of Original Listing Price – Greeley | Wellington | Severance | Johnstown
One interesting metric to look at when analyzing Colorado real estate market is percent of original list price. This is a way of seeing how much a property sold for compared to what the seller was originally asking for it.
So, if they asked $500,000 for it, and they closed the deal and sold it for $500,000, they sold it for 100% of original list price. If they asked $500,000 for it and received $495,000, they sold it for 99% of original list price.
This data shows the percentage of original list price for properties in Greeley, Wellington, Severance and Johnstown, Colorado.
COOL FEATURE! Scroll over or tap chart lines for time specific data boxes to enhance this interactive experience!
Data compiled and formatted by Infosparks. I access this service through our multiple listing service, IRES.
This chart tells the story. If the sales price dipped below the listing price in the last couple of years, it did so by very little. This data further shows the popularity of our area, because buyers are willing to pay the prices that sellers are asking for their real estate. To go deeper into the situation of the equation, and assuming that not all of these buyers were cash buyers, it shows that at least a portion of these homes must have appraised for the value for which they sold.
Cash buyers don’t need to worry about appraisals the way that those borrowing money do. Lenders are very strict about to whom they’ll lend, and for what. For example, if a buyer wanted to borrow money to buy a home that appraised below the proposed purchase price, it is unlikely that the lender would approve the loan. They only want to lend on properties that match or exceed the value of the loan being taken for said property. Lenders won’t readily approve financing on a property if they feel the buyer is spending more than the property is worth.
Cash buyers, of course are free to pay whatever they’d like for real estate, without restrictions from a lender, since they aren’t using one.
The prices that you see in the listing for a property will probably be in the ballpark of what the buyer will end up paying, given that the property was priced properly. Undercutting and lowballing to a successful purchase aren’t happening so much in a market like ours. At least, not now.
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