Welcome back to another edition of Coffee with Connie! Today I'm going to answer a question I'm always getting from buyers and sellers. They want to know about price negotiations, and how they typically work in our market, for both buyers and sellers.The answer is that it depends. To buyers, you want to look at the situation the home is in. If the home just came on the market and has received multiple offers, you are going to be paying full price or more for it. If the house has been on the market for a while, stagnant, you may be able to purchase it at a discount.
On average, homes in the Atlanta area sell for about 95% of their original list price. However, the numbers change when price reductions factor in. Homes that have zero price reductions end up selling for 98.2% of their list price. A home that is price reduced once in Atlanta is only getting 97% of its list price.
The market is penalizing you about 1% of your sales price for not pricing right the first time, and the more reductions you have, the lower your price is going to go. This could take a few thousand dollars away from your bottom line by not pricing right the first time.