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U.S. Homebuyers Pay Closer to Listing Price in August, But Are Still Negotiating Thousands in Discounts

Florida Buyers Negotiating Deepest Discounts from Asking Price, According to August Zillow® Real Estate Market Reports

* Buyers pay 3% less than listing price in August, down from 3.3% in July and 4.5% in January

* 24.7% of all unsold homes had at least one price reduction as of Oct. 1

* Vero Beach buyers had most negotiating power

SEATTLE, Oct. 8 /PRNewswire/ -- Homebuyers in much of the U.S. are still paying thousands of dollars below the home's asking price, but had slightly less negotiating power in August than they did in July, according to the August Zillow Real Estate Market Reports. Buyers paid a median $6,525, or 3 percent, less than the last listing price on homes bought [i] in August, down from $7,018, or 3.3 percent, less for homes bought in July.

(Logo: http://www.newscom.com/cgi-bin/prnh/20060503/ZILLOWLOGO)

Negotiating power peaked in January 2009, when buyers were paying 4.5 percent less than last listing price, a median of $10,096.

Meanwhile, sellers continue to cut prices on unsold homes. One quarter (24.7 percent) of all homes listed for sale on Zillow had at least one listing price reduction[ii] as of Oct. 1, 2009. The median U.S. price reduction[iii] was 6.6 percent off the original listing price.

Florida homebuyers again in August had the most negotiating power, with buyers in the Vero Beach metropolitan statistical area (MSA) paying 8.9 percent, or a median $20,974, less than the last listing price. Buyers in the Naples MSA paid 8 percent less than list price. The Naples, Daytona Beach, Miami-Fort Lauderdale, Ocala, Lakeland, Punta Gorda, Melbourne, Gainesville, Tampa, Jacksonville and Fort Myers MSAs also ranked, in that order, as the top markets for negotiation.

But in two California markets, buyers paid more than asking price during August. In the El Centro MSA, buyers paid 2.2 percent, or a median $2,479, more than asking price. In the Stockton MSA, buyers paid 1.3 percent, or $2,515, more.

"Negotiating power is a clear reflection of inventory levels, which dropped nationally in August. Tighter supply in some markets is translating into less of a discount off listing price," said Zillow Chief Economist Dr. Stan Humphries. "Unfortunately, the brisk spring and summer home shopping season is drawing to a close now, and with foreclosures on the rise again, inventory levels will likely head back up in the coming months, leading buyers' negotiating power to regain the ground it lost in August."

Top 25 Markets for Negotiating Discounts (ranked by percent difference from last list price to final sale)*

                  Median %   Median $                       Zillow
                 Difference Difference  % of For   Median    Home
         MSA     from Last   from List    Sale      % of    Value      Median
    Statistical  List Price  Price to   Listings    Price   Index       Days
        Area      to Final     Final   with Price  Reduc- Year-Over- Listed on
                  Sale(1)     Sale(1)    Reduc-     tion     Year    Zillow(4)
                                         tions(2)         Change(4)
    --------------------------------------------------------------------------
    United States      3%     $6,525       24.7%     6.6%      -7.6%        96
    --------------------------------------------------------------------------
    Vero Beach,
     Fla. MSA        8.9%    $20,974       17.2%     9.3%      -6.7%       109
    --------------------------------------------------------------------------
    Naples,
     Fla. MSA        8.0%    $27,155       21.8%     9.8%     -19.8%       130
    --------------------------------------------------------------------------
    Sarasota,
     Fla. MSA        7.9%    $19,782       21.5%     8.6%     -14.6%       109
    --------------------------------------------------------------------------
    Panama City,
     Fla. MSA        7.6%    $18,160       23.2%     9.3%      -7.8%       133
    --------------------------------------------------------------------------
    Daytona Beach,
     Fla. MSA        7.3%    $13,724       25.7%     9.3%     -19.2%       127
    --------------------------------------------------------------------------
    Atlantic City,
     N.J. MSA        7.2%    $21,532         22%     6.9%      -6.7%       117
    --------------------------------------------------------------------------
    Miami-Fort
     Lauderdale,
     Fla. MSA        7.0%    $17,586       19.5%    11.2%     -18.2%        96
    --------------------------------------------------------------------------
    Morristown,
     Tenn. MSA       6.9%    $12,118       21.1%     6.6%     -14.3%       139
    --------------------------------------------------------------------------
    Ocala,
     Fla. MSA        6.5%     $8,565         25%    10.2%     -10.3%        74
    --------------------------------------------------------------------------
    Lakeland,
     Fla. MSA        6.4%     $9,691       21.5%     9.1%     -21.1%       111
    --------------------------------------------------------------------------
    Punta Gorda,
     Fla. MSA        6.3%    $10,716       17.8%     9.8%      -9.6%       130
    --------------------------------------------------------------------------
    Toledo,
     Ohio MSA        6.3%     $7,472         25%     7.7%      -6.6%       110
    --------------------------------------------------------------------------
    Melbourne,
     Fla. MSA        6.2%    $11,138       22.4%     9.1%     -14.6%       119
    --------------------------------------------------------------------------
    Gainesville,
     Fla. MSA        5.9%    $10,598       24.4%     7.3%      -8.5%       131
    --------------------------------------------------------------------------
    Tampa,
     Fla. MSA        5.9%    $10,320       24.2%     9.1%     -17.5%       101
    --------------------------------------------------------------------------
    Stamford,
     Conn. MSA       5.8%    $31,324       27.2%     5.7%      -6.4%       116
    --------------------------------------------------------------------------
    Jacksonville,
     Fla. MSA        5.6%    $11,280       30.1%     7.7%      -9.9%       109
    --------------------------------------------------------------------------
    Chicago,
     Ill. MSA        5.6%    $13,805       31.4%     6.1%     -11.5%       110
    --------------------------------------------------------------------------
    Springfield,
     Ohio MSA        5.6%     $5,293       22.2%       8%      -0.8%        96
    --------------------------------------------------------------------------
    Cleveland,
     Ohio MSA        5.5%     $7,440       27.7%       7%      -2.7%        91
    --------------------------------------------------------------------------
    Pittsfield,
     Mass. MSA       5.5%    $15,624       22.2%     6.7%      -7.8%       119
    --------------------------------------------------------------------------
    Prescott,
     Ariz. MSA       5.5%    $13,038       29.5%     8.7%     -18.9%       110
    --------------------------------------------------------------------------
    Fort Myers,
     Fla. MSA        5.4%    $10,229       17.2%    10.7%     -26.2%       130
    --------------------------------------------------------------------------
    Detroit,
     Mich. MSA       5.4%     $6,444       31.6%    11.1%       -23%        89
    --------------------------------------------------------------------------
    Greensboro,
     N.C. MSA        5.3%     $8,209       25.5%     4.8%      -4.4%       101
    --------------------------------------------------------------------------

*Full list available at http://zillow.mediaroom.com/ or by emailing press@zillow.com.

The full August national report for 160 MSAs, in its new, interactive format, will be available on Tuesday, Oct. 13 at www.zillow.com/local-info, or by emailing press@zillow.com. Additionally, in most areas data is available at the state, MSA, county, city, ZIP and neighborhood level.

About Zillow.com®

Zillow.com is an online real estate marketplace where homeowners, buyers, sellers, real estate agents and mortgage professionals find and share vital information about homes and mortgages, for free. Launched in early 2006 with Zestimate® home values and data on millions of U.S. homes, Zillow has since added homes for sale, a directory of real estate and lending professionals, Zillow Advice and Zillow Mortgage Marketplace. One of the most-visited U.S. real estate Web sites, with more than eight million unique visitors per month, Zillow's goal is to help people become smarter about real estate in every stage of the home ownership process--home buying, selling, remodeling and financing. The company is headquartered in Seattle and has raised $87 million in funding.

Zillow.com, Zillow and Zestimate are registered trademarks of Zillow, Inc.

[i] List-to-sale price ratio is the median between the most previous list price and the final sale price of the home for all Zillow listings in a given geography. Foreclosed homes are included if they were listed as for-sale on Zillow prior to the foreclosure. The dollar amount is the median price of all listings on Zillow during a month multiplied by the inverse of the list-to-sale price ratio (sale-to-list price ratio). List-to-sale price ratio is calculated for August.

[ii] Listings with price reduction are the percent of for-sale listings on Zillow that, during September, had a reduced listing price compared with the maximum listing price of the preceding three months.

[iii] The median percent of price reduction measures the median amount of all price reductions in the listing price of for-sale homes that had a reduced price during September, compared with the maximum list price in the last three months.

[iv] The Zillow Home Value Index is the median estimated value (Zestimate) of all homes in an area. This measures the change of the Zillow Home Value Index from August 2008 to August 2009.

SOURCE Zillow.com

Photo: http://www.newscom.com/cgi-bin/prnh/20060503/ZILLOWLOGO
http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com

SOURCE: Zillow.com

Web site: http://www.zillow.com/


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