Real Estate
Low Inventory…Are Buyers Willing To Pay More?
Do Overpriced Listings Sell? Check out how many Annapolis Sellers needed to drop the price and provide closing costs to sell!
The real estate market in Annapolis, MD has been very hot with historically low inventory and low days on market. In September, the average days on market was 39 days and home were selling for on average, 97.9% of their original list price. With these statistics, strongly favoring the seller, we were wondering what happens if a seller overprices their home? Are buyers in this market willing to pay a premium for overpriced homes with such low inventory? Let’s find out!
For this analysis, we looked at the homes that sold in the past 90 days and reviewed the price drop information. A vast majority of homes had no price drop, but there were some homes that required a single price adjustment before closing. Additionally, we analyzed the homes that received closing costs from the seller and the impact a single price drop has on homes receiving closing costs.
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In the past 90 days, there was a total of 393 homes that sold in Annapolis, MD with no price drop and 102 homes that sold with a single price adjustment before selling. Home requiring no price drop had a median days of market of 6 days and 39% of these homes received closing costs. Homes requiring a single price drop sold for $10K less that their list price, had a median days of market of 29.5 days and 35% of these homes received closing costs. Furthermore, for the homes requiring a single price drop, these homes went under contract in about 7 days after the price drop.
NO PRICE ADJUSTMENT:
| Detached | Townhouse | Condo | |
| Homes Sold | 229 | 104 | 60 |
| Days of Market | 6 | 6 | 8 |
| List Price (LP) | $625,000 | $392,450 | $285,000 |
| Sold Price (SP) | $625,000 | $390,000 | $288,000 |
| Ratio SP to LP | 100.0% | 99.4% | 101.1% |
SINGLE PRICE DROP:
| Detached | Townhouse | Condo | |
| Homes Sold | 62 | 20 | 20 |
| Days of Market | 29.5 | 15 | 45 |
| List Price (LP) | $582,500 | $389,945 | $349,000 |
| Sold Price (SP) | $594,500 | $387,500 | $324,000 |
| Ratio SP to LP | 102.1% | 99.4% | 92.8% |
This data reinforces the market statistics and market forces of supply and demand…homes that are priced right, sell faster and sell for more. Overpriced homes take longer to sell and ultimately sell for less and it is only after the price is adjusted down to closer to their market value do they go under contract in roughly the same number of days that a correctly priced home sells for.
Find out what's happening in Annapoliswith free, real-time updates from Patch.
About Peggy Yee
Peggy Yee is a supervising broker at Frankly Realtors and is a local Top Producer. She has sold over $200 million in sales and was one of Northern Virginia Magazine's Top Realtors since 2015. She has been quoted in the Around Reston Magazine, Washington Post, Money Magazine, Consumer Reports, Zillow, Trulia and Realtor.com. Peggy is 100% committed to making your move the best experience possible! Don't just take our word...Click here to see what Peggy's past clients have to say about the experience working with her from Buyer and Seller Video Testimonials and you'll understand why she is one of the top real estate agents in Annapolis with dozens of 5 Star Zillow reviews. Click here for Zillow Reviews.
* Data Source: BrightMLS and SmartCharts. Information deemed reliable but not guaranteed.
