The August edition of the Zillow real estate marketing reports show that on the average, buyers paid 3% less than the last published asking price for a listed home. In July, buyers paid 3.3% less. Buyer negotiating power hit its recent peak in January of this year when the average buyer paid 4.5% less than the asking price.
Sellers are also finding it necessary to reduce the asking price of their homes. Nearly 25% of all listings had at least one price reduction made on them as of October. Across the country, the average price reduction stands at just under 7% of the original asking price.
Two inland markets in the state of California had buyers which paid more than the asking price of the home. The areas were Stockton and El Centro.
The reduction of buyer negotiation power is directly linked to the available inventory on the market. If the anticipated increase in foreclosure activity happens later this year, buyers negotiating power will be recharged.
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