Yesterday we saw that all distressed and REO property sales in Ascension combined for a 97% average list/sold price ratio when considering all types of financing. When we think about that, that’s pretty much a normal market for non-distressed property. “But aren’t foreclosures and short sales supposed be deals for investing?” Yes, but knowing HOW to buy is just as important as WHAT to buy.
Simply put: Cash is KING.
Looking at the cash sale numbers you’ll see what I mean. Check out the percentages now for all 58 cash purchases:
In 2014, the average discount you could expect was 87% from the original list price; in 2013 it was 86%. Looking at the bottom line of each graphic, the total volume of lis/sold prices was 86% in 2014, 8 points higher than the total volume of 2013. The conclusion? There is more competition for these properties.
So while banks are putting their properties on the market at fair market value, the ability to pay cash is the best leverage you can have to get the right price. Offering at 86%-88% of list price represents where you can expect the highest rate of negotiating success.
Tomorrow we’ll do all East Baton Rouge cash sales. In 2013 the average was 88% – how did 2014 fare?
David R. Madaffari, Realtor
Keller Williams Realty – First Choice
Cell: 225.772.3283 (DAVE)
37325 Market Place Dr. Ste D
Prairieville, LA 70769
Each office independently owned and operated