A buyer’s market brings out the bargain hunters in all of us. It’s therefore tough to not base your bidding strategy on the asking price of a property, and look to negotiate down from there. Though it may be hard to believe, particularly if you read Core’s October report outlining asking vs. closing spreads.
The spread to consider more carefully is that between the last asking price and the close, which in many cases is averaging below 5%. The wise buyer should approach each property individually and assess its value independent of the seller’s ask; then establish your go-forward strategy. Our post on Urban Digs addresses this very issue, should you wish to read more.