One of the biggest questions we get asked is how much sellers come down from their listing price in contract negotiations.
Buyers need this information so they can decide if a home listed just above their budget is affordable. They want to get the best deal they can on a home, but also need to be realistic about how much they can get the seller to come down.
Sellers need this information so they can plan for how much they will net on the sale and make sound decisions about if they still want to sell. It is especially important to understand the probable sale price when a seller owes more than the property is worth.
The charts below show both the percentage that sellers came down from their original listing price and the price that the property was listed for at the time the contract was accepted.
We find that most sellers come down around 3-6% off their current listing price. How much they come down from their original listing price depends on if the house was priced well at the start or if it was drastically overpriced.
Homes:
St. Louis County Sold Homes:
Sale Price to List Price/Original List Price Ratio
St. Louis City Sold Homes:
Sale Price to List Price/Original List Price Ratio
St. Charles County Sold Homes:
Sale Price to List Price/Original List Price Ratio
Condos:
St. Louis County Sold Condos:
Sale Price to List Price/Original List Price Ratio
St. Louis City Sold Condos:
Sale Price to List Price/Original List Price Ratio
St. Charles County Sold Condos:
Sale Price to List Price/Original List Price Ratio
From year to year, there is very little variation on how much sellers come down from the current listing price in contract negotiations.
However, there are big differences in the total price reductions from the ORIGINAL listing price. The swings in these percentages show how realistic, or unrealistic, sellers are when they put their home on the market.
Karen Goodman
Karen Goodman is Founder of Arch City Homes and leads a team of top real estate agents in St. Louis, MO.
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