How Low is TOO low?

So is it a Seller’s Market still? Or a Buyer’s market? Depending on the stats, and your outlook on life, I can make the argument for both. What’s certain, is the market is more balanced now than it was last summer, and that can be seen as and advantage for Buyers. However, with our inventory levels still under 3.5 months, Seller’s are not necessarily ‘weak’ either.

Which brings me to today’s topic - How low is too low? Now that we are seeing less Multiple Offer situations, and the Median Days on market creep closer to 1 month than 2 weeks, there appears to be more opportunity to purchase a home for less than the asking price. The best chance of success is to structure an offer that may be below asking price, and may allow a seller to be more reasonable with their response.

Don’t get me wrong - homes are still selling at roughly 98.3% of list price, on average, so this is not to say the sky is falling. If a home is reasonably priced at $300,000, are you going to get it for $270,000, or 10% less than asking price? Most likely, not, unless there are circumstances that would necessitate a quick sale by the seller. But, compared to last year, when you had to come in at $295,000 or MORE for something like this, you may be able to come in at $290,000… $292,000 and have a reasonable chance for an acceptance, or at least, a minimal counter.

Caveat, of course, is every seller is different, and every situation is different. Are you getting a home for $290,000 that was listed at $300,000 when it had 15 showings the first day… probably not. But maybe the home has been on the market for 21 days. Maybe the home could use some paint, or carpet, but comps suggest a $300,000 valuation. Could you swoop in at $290,000 or so then. Yes, that is something that we are seeing more and more in this market.

So when I’m working with my buyers, I always want to gauge HOW much they love a home. Would they be sick to their stomachs if they lost the home over a couple grand? If that’s the case, I’m still suggesting we come in closer to asking price. After all, the values are there. If they love the home, LOVE it, but don’t want to offer more than 90% of ask (and value), I am prepping them for a rejection, or at a minimum, a counter very close to asking price.

The market is shifting. But it has not become a Buyer frenzy yet. There is no ‘blue light special’ in terms of pricing and values in Las Vegas. If you’re waiting for the sky to fall… keep waiting, as I don’t see anything happen like that for the foreseeable future.