"I'm looking for a deal!"
Posted by Marc Rasmussen on Monday, October 25th, 2010 at 11:04am.Just about every prospective home buyer mentions this to their Realtor. We Realtors chuckle to each other about how often we hear this line. It is totally understandable. If I was in the market to buy a home I would say the same thing. This is the time to be looking for a deal and now is the time to find one.
However, people define "deal" in different ways. Regardless of what a property is worth most buyers define deal by how much off of the asking price they can get the seller to accept. For example, if a buyer can get a seller to accept an offer of $400,000 on a home with an asking price of $500,000 then most would consider that a good deal.
Many buyers just assume that they can knock off 20%, 30%, 40% or even 50% off the asking price. I had someone call me the other day wanting to offer $300,000 for a condo with an asking price of $600,000 and that he might be willing to go a little bit higher.
People in other parts of the country hear blurbs in the news about how bad real estate is in Florida and expect to get a huge discount from the asking price.
So what can you realisitically expect to get off of the list price?
Below are sales in October for Longboat Key, Lido Key, downtown Sarasota, Bird Key, Siesta Key and Lakewood Ranch showing the asking price, sales price and sales price/list price.
Longboat Key real estate
Here are all of the sales on Longboat Key so far in October.
| Address | List Price | Sales Price | SP/LP | |||
| 380 NORTHSHORE RD # 3 | 230,000 | 230,000 | 100% | |||
| 540 NEPTUNE AVE # 4 | 264,900 | 225,000 | 85% | |||
| 448 GULF OF MEXICO DR # A206 | 375,000 | 355,000 | 95% | |||
| 6500 GULFSIDE RD | 450,000 | 400,000 | 89% | |||
| 230 SANDS POINT ROAD # 3505 | 475,000 | 436,250 | 92% | |||
| 5921 EMERALD HARBOR DR | 521,900 | 500,000 | 96% | |||
| 775 LONGBOAT CLUB RD # 304 | 649,000 | 580,000 | 89% | |||
| 601 LONGBOAT CLUB RD # 403S | 889,000 | 830,000 | 93% | |||
| 560 SCHOONER LN | 897,750 | 842,500 | 94% | |||
| 350 GULF OF MEXICO DR # 233 | 1,125,000 | 1,050,000 | 93% | |||
| Average | 93% |
Siesta Key Real Estate
Here are all of the sales on Siesta Key so far in October.
| Address | List Price | Sales Price | SP/LP | |||
| 6703 MIDNIGHT PASS RD # 203 | 165,000 | 159,550 | 97% | |||
| 6020 MIDNIGHT PASS RD # 46 | 199,900 | 180,000 | 90% | |||
| 8977 MIDNIGHT PASS RD # 520 | 219,900 | 208,000 | 95% | |||
| 6350 MIDNIGHT COVE RD # 712 | 299,000 | 300,000 | 100% | |||
| 5600 BEACH WAY DR # 109 | 324,900 | 300,000 | 92% | |||
| 363 AVENIDA MILANO | 335,000 | 335,000 | 100% | |||
| 4566 HIGEL AVE | 359,900 | 345,000 | 96% | |||
| 318 ISLAND CIR | 399,000 | 350,000 | 88% | |||
| 1035 SEASIDE DR # 10 | 449,000 | 375,000 | 84% | |||
| 9397 MIDNIGHT PASS RD # P4 | 459,000 | 380,000 | 83% | |||
| 532 CANAL | 598,900 | 598,900 | 100% | |||
| 5880 MIDNIGHT PASS RD # 203 | 599,000 | 555,000 | 93% | |||
| 20 WHISPERING SANDS DR # 803 | 699,000 | 680,000 | 97% | |||
| 1310 OLD STICKNEY POINT RD | 899,000 | 925,000 | 103% | |||
| Average | 94% |
Lido Key/Bird Key and Downtown Sarasota Real Estate
Here are all of the sales in Bird Key, Lido Key and downtown Sarasota so far in October.
| Address | List Price | Sales Price | SP/LP | |||
| 101 S GULFSTREAM AVE # 5B | 75,000 | 60,000 | 80% | |||
| 449 GOLDEN GATE PT # A | 137,900 | 137,900 | 100% | |||
| 850 S TAMIAMI TRL # 730 | 179,900 | 155,000 | 86% | |||
| 522 GOLDEN GATE PT # 3 | 185,000 | 190,000 | 103% | |||
| 800 N TAMIAMI TRL # 1410 | 345,000 | 320,000 | 93% | |||
| 1188 N TAMIAMI TRL # 405 | 349,900 | 318,750 | 91% | |||
| 888 BLVD OF THE ARTS # 1107 | 374,900 | 352,000 | 94% | |||
| 712 S BLVD OF PRESIDENTS | 399,000 | 377,000 | 94% | |||
| 100 CENTRAL AVE # A403 | 409,000 | 350,000 | 86% | |||
| 1700 BENJAMIN FRANKLIN DR # 8-E | 429,000 | 425,000 | 99% | |||
| 1102 BEN FRANKLIN DRIVE # 708 | 449,000 | 350,000 | 78% | |||
| 1350 MAIN ST # 907 | 483,000 | 450,000 | 93% | |||
| 452 E ROYAL FLAMINGO DR | 495,000 | 410,000 | 83% | |||
| 1212 BEN FRANKLIN DR # 807 | 499,000 | 450,000 | 90% | |||
| 1255 N GULFSTREAM AVE # 802 | 635,000 | 537,500 | 85% | |||
| 770 S PALM AVE # PH3 | 649,000 | 580,000 | 89% | |||
| 1212 CENTER PL | 650,000 | 650,000 | 100% | |||
| 1255 N GULFSTREAM AVE # 1401 | 825,000 | 750,000 | 91% | |||
| 114 SEAGULL LN | 1,499,000 | 1,325,000 | 88% | |||
| Average | 91% | |||||
Lakewood Ranch Real Estate
Below are all of the sales in Octobert for the Lakewood Ranch area.
| Address | List Price | Sales Price | SP/LP | ||
| 14937 AMBERJACK TER # 101 | 60,000 | 57,000 | 95% | ||
| 14708 AMBERJACK TER # 101 | 64,900 | 60,000 | 92% | ||
| 14958 AMBERJACK TER | 75,000 | 75,000 | 100% | ||
| 14893 SKIP JACK LOOP # 102 | 75,000 | 70,000 | 93% | ||
| 14907 SKIP JACK LOOP | 87,000 | 85,000 | 98% | ||
| 14837 SKIP JACK LOOP # 101 | 89,000 | 94,000 | 106% | ||
| 6419 ORCHARD ORIOLE LN | 123,900 | 119,000 | 96% | ||
| 7135 BLUEBELL CT | 154,900 | 155,900 | 101% | ||
| 7612 LAKE VISTA CT # 304 | 169,900 | 171,000 | 101% | ||
| 6304 ROSE RUSH CT | 174,900 | 168,500 | 96% | ||
| 14722 BOWFIN TER | 305,000 | 381,000 | 125% | ||
| 6522 SPYGLASS LN | 310,000 | 292,000 | 94% | ||
| 21305 DEER POINTE XING | 339,000 | 310,000 | 91% | ||
| 6419 MOORINGS POINT CIR # 102 | 349,900 | 300,000 | 86% | ||
| 22602 NIGHT HERON WAY | 365,000 | 347,500 | 95% | ||
| 7625 SILVERWOOD CT | 395,000 | 385,000 | 97% | ||
| 7008 PINE VALLEY ST | 464,900 | 415,500 | 89% | ||
| 7626 TRALEE WAY | 539,900 | 522,500 | 97% | ||
| 7319 DESERT RIDGE GLN | 995,000 | 875,000 | 88% | ||
| 12535 HIGHFIELD CIR | 1,495,000 | 1,225,000 | 82% | ||
| Average | 96% | ||||
As you can see 20%, 30%, 40% discounts from the list price are non-existent. The lowest I see is one property sold for 82% of list price. The Sarasota Association of Realtors releases statistics every month. The average discount is hovering 5% from the last asking price. Notice I said last asking price and not the original asking price.
If I can help you buy or sell a home in Sarasota plase give me a call at 941.812.6272.
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Share9 Responses to ""I'm looking for a deal!""
Thanks Cheri. Good suggestions. I will write a follow up post. ;-)
Posted on Monday, October 25th, 2010 at 1:08pm.
Very good artical
Posted on Monday, October 25th, 2010 at 8:01pm.
I think those looking for a deal just need more patience. The deals are coming!
Posted on Tuesday, October 26th, 2010 at 11:32am.
I can't even begin to tell you how many calls/emails I get from people looking for oceanfront homes/condos who are only looking to spend 10-20% of what those properties are worth. For realtors, setting realistic expectations goes a long way. Good post, Marc.
Posted on Thursday, October 28th, 2010 at 5:17am.
Thanks Alex. I receive similar calls from buyers.
Posted on Thursday, October 28th, 2010 at 6:49am.
I think most sellers are trying to price a little bit above what they are willing to accept for their final home sale price and most won't go much lower than that. Those stats concur with this idea.
Posted on Sunday, October 31st, 2010 at 10:59pm.
Great post, Marc.
When I get these ultra aggressive (i.e., clueless) buyers, I advise them that if they want to get really pushy, start at 10% off and BEG for a counter offer.
You always risk losing clients like this but are they really clients if they are not willing to actually purchase a property?
Posted on Tuesday, November 2nd, 2010 at 12:32pm.
I share your sentiment Marc. The 'great deal' makes me crazy.
If it's a million dollars, what is a great deal? $50?
Posted on Thursday, November 4th, 2010 at 1:16pm.
Marc,
That is a great way to illustrate what happens when a property is priced right. Your last comment is the key though...last list price..would be interesting to see how high and for how long some of those properties had been listed before they adjusted to what the market would accept.
Posted on Monday, October 25th, 2010 at 1:04pm.