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

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(R) Real Estate Market Reports

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.

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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.

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[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

Katie Curnutte of Zillow.com, +1-206-757-2785, press@zillow.com