- In sizzling hot markets, stale listings get buyers best discounts
- Year-old listings that need repair have median discount of -18%, according to UrbanDigs
Stale Listings & Fixer-Uppers Get Buyers Best Discounts
Even in a white-hot market, a new report by UrbanDigs indicates that fixer-uppers and stale listings can offer buyers the biggest median price discounts.
According to UrbanDigs, homes needing repairs/renovations that have been on the market for over a year offer buyers a median discount of -18%. Such homes on the market for six months or more have been offering buyers a median discount of -16.4%.
Non-Turn-Key Homes Sitting on Sidelines
John Walkup, author of the UrbanDigs report, said, “Units that required extra time to be ‘ready’ generally were passed over a little more than they normally would be passed over.”
Makes sense since pandemic buyers raced to buy larger homes that were move-in ready.
During Q3 2020, non-turn-key townhouses had a median discount of an eye-popping -40%. Turn-key townhouses that became stale listings (DOM of one year+) had a median discount of -14.3%. Those on the market for at least six months that needed no repairs came in with a median discount of -12.4%.
All-Cash Deals Did Not Translate into Steep Discounts
Even all-cash deals did not get the same leverage typically expected by all-cash buyers, particularly in high demand markets.
Deals that closed within 45 days, often called quick deals, offered all-cash buyers median price discounts of approximately -6.4%. This median price discount for all-cash quick deals was comparable to the overall market’s median discount price.
Thanks to The RealDeal and UrbanDigs.
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