Curve

Forget paying full listing price; here’s where homebuyers can find deals

Aly J. Yale
The Mortgage Reports contributor

Homebuying discounts

Don’t want to pay full listing price? According to a new forecast, you may not have to — especially if you choose the right location.

Verify your new rate (Nov 22nd, 2019)

Lower than listing price

According to the latest Deals Forecast from iBuying platform Knock.com, 67 percent of homes currently on the market are predicted to sell below listing price this quarter.

The most deals are expected in the South, with Miami taking the top spot in terms of metros. More than 84 percent of Miami homes are expected to sell below listing price in Q4, with a discount of 5.67 percent on average.

Other cities where big deals are expected include Chicago, Houston, New Orleans, Pittsburgh, New York, and Hartford, Connecticut. The biggest average discount is predicted for Pittsburgh, where buyers will enjoy 5.68 percent off list price.

Getting sellers to pay your closing costs

Fewer deals, bigger discounts

Overall, the share of deals is up over last quarter, though its growth is slowing compared to 2018. According to Knock, this “points to a more balanced market.”

Buyers see less competition — especially in hotter markets

The fewest deals are happening in the West. Last quarter, 59 percent of homes sold below listing price — well below that of the South (67 percent).

As Paul Habbi, economic advisor at Knock, explains, “Many cities in the West that saw increased competition during the recent housing market uptick are now experiencing some of the more significant slowdowns in sales activity,”

Still, conditions are improving in the region. The West might not have seen the most discounts, but it did see the largest one in Q3. The average discount clocked in at 4.68 percent last quarter.

Verify your new rate (Nov 22nd, 2019)

Get today’s mortgage rates

Are you looking to cash in on one of these deals? Then shop around and see what mortgage rates you qualify for today.

Verify your new rate (Nov 22nd, 2019)