[Discounts to retail] what are distressed homes for sale in Charleston really selling for
RealtyTrac recently released a report analyzing the average discount for foreclosures and short sales to retail sales and my friend Jonathan Dalton didn't think the numbers indicating distressed sales at a 30 percent discount seemed kosher based on his experience in the trenches of selling Phoenix real estate.
Over at Housing Wire, Jon Prior reports that short sale discounts vary widely by market and says that Massachusetts has the largest discount and believe it or not, our very own South Carolina market has the lowest discount and "those who purchase a home through a short sale are not getting much of a deal in South Carolina".
Well, if you believe that buyers are paying full price in South Carolina for short sales, you haven't been paying attention. Buyers aren't paying full price for regular sales let alone foreclosures or short sales. So while all these real estate sites are fighting to prove their relevance, sometimes you just have to wonder where they are getting their info.
My first question is discount to what.
In the Charleston real estate market, the average home for sale sold for 94.16 percent of list price. That means that some homes sold for full price, others sold at discounts of 10 percent or more but the average home sold for just about 6 percent less than the listing price. As you would expect, the discount was higher for luxury Charleston real estate than for lower priced homes with mid priced homes somewhere in between.
But market value is the price a ready, willing and able buyer offers to buy a home. So it really doesn't matter what the discount is but what price a buyer is willing to pay. And every buyer that I have worked with lately is looking for a deal and when they are realistic about their expectations, Charleston home buyers can get a very good deal.