A Remarkable number of homes sold below the listing price in 2018

The information in this blog is true, however, an experienced Realtor has the same tools to conduct business in the same fashion as the resources provided in this article.

More than three-quarters (75%) of all homes currently on the market will sell below asking in 2019, according to an analysis by Knock, the home resale company.   

Courtesy of Knock

In the South, where Knock and other iBuyers have carved inroads, a remarkable number of homes sold below the listing price in 2018, “with New Orleans and Jacksonville, Florida, among the top underperforming cities. Miami topped the list with 85 percent of all listings failing to sell for asking.”

By looking at on-market listings and sales trends across the country, Knock determined that 62 percent of all homes sold below asking price in 2018, according to a national forecast on Wednesday. Now, the company projects 77 percent of all listings will sell below asking price in the first quarter of 2019.

To arrive at the predictive findings, Knock looked at 484,843 active listings in 45 metropolitan areas in the weeks leading up to November 30, 2018. The historical data, which Knock sourced from Attom Data Solutions, is then aggregated and compared to the probability of different sale prices.

“While there’s no denying that home prices have been steadily on the rise, list prices are clearly increasing above realistic levels, as corroborated by the study’s findings that over 60 percent of homes sold well below their original list prices in 2018,” Knock Economic Advisor Paul Habibi said in a statement.

Take the results with a grain of salt, however, as Knock would seem to benefit from the findings of its own study. The company offers customers the ability to ‘trade-in’ an old home for a new one for a fee. So the idea that homes are selling below their asking price on the open market, and that this will continue, would bolster Knock’s argument to customers to eschew listing homes for sale and instead sell to Knock. Better yet call me “Dan Swing” for a fair solution to make your deal happen!

Courtesy of Knock

While homeowners frequently set asking prices high to leave room for negotiating, the report suggests lower sales prices reflect sellers’ inflated confidence that their homes will sell for more than they’re worth. Such confidence has increased as home values grow, but, in reality, homes that spend extended time on the market are more likely to sell below asking price. In November, 92 percent of all properties that spent more than two months on the market sold for less than the asking price, according to the Knock analysis.

Knock CEO Sean Black said the findings show how some homeowners undermine themselves by holding out for buyers willing to pay higher prices.

“One of the greatest roadblocks to market fluidity is these consumers’ inability to afford their next home while selling their old one,” the report reads. “By providing them with transparency into pricing patterns and insights into where they can find the best deals through regular national Knock Deals Forecasts, Knock aims to help more sellers move into their next home more quickly, increasing inventory and overall market fluidity.”

Author: danswingblog

Dan has celebrated over 19 years as a full-time Realtor. Successfully listed and sold homes well through the 8 figure market. Advises and assists clients with challenging Portfolios! Not uncommon to be working with foreign nationals, buyers that leverage the Sterling, Euro, and similar currency. Dan welcomes the Global community, with friends in many Nations. He brings a reputation for Integrity, Expertise, and Focus. Our customers deserve the best. Currently provides Residential and Commercial B.P.O.'s, Broker Price Opinions, B.O.V's, Broker Opinion of Value to many lenders. Manage and Sells R.E.O., Real Estate Owned properties, distressed properties! Evaluate and negotiate solutions for sellers and lenders. Developed, operated and sold a Florida "AWARD WINNING" Ad Agency! 2010 & 11 Commercial Agent of the year. RE/MAX Paramount Properties. Relocated to Tampa in 2012, enjoyed retirement for 6 months. Saw unethical practices by some Realtors and choose to reverberate our profession in the Tampa area. In four years built his business to as many as four (4) transactions monthly. Mortgage brokers were calling Dan a Superstar in Real Estate. Dan and his wife relocated to North East Florida, to the community of Nocatee. Currently focusing on 55 and older communities and Luxury Real Estate. Successfully closed on many extremely challenging foreclosures, and Short Sale. Coached and participated in Commercial and Multi-Income Family REO's in the past six years. Elected to the Auburndale City Commission in 1986-88. Created and served as 1st Redevelopment Chair in 1988 & 89 personally put in place all the elements for the Auburndale CRA. 1990 City Commission refused to give a full vote of confidence. After a 5 year journey to personally raise funding, extensive research and study for the CRA district perimeters, and stunned with the Commissions doubt. Positioned himself to run for office again, was re-elected to Auburndale Commission, to serve 1991-93 to full fill the CRA master plan! Active with the Central Florida Development Council from conception in 1985 and sat on the board periodically for the past 25 years representing municipalities and private investors. The positions Dan held from 1986 through 1993 enabled him to have a complete workable understanding of the State of Florida Comprehensive Plan for Future Land Use, and the benefits of intergovernmental agreements, utility franchise expansions, and public/private partnerships! Specialties: Assets recovery & receivership, Real Estate Portfolio's, REO & Short Sale of Residential and Commercial negotiations, marketing consultant, public relations, and Broker Price Opinions for residential and commercial lenders.

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