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How much should you offer on a vacation retreat in Litchfield County?

Litchfield County antique homesBuying your vacation retreat in Litchfield County, Connecticut.  How much should you offer on the house you want to buy in Washington? With a luxury home, pricing is a bit different. If I look at list to sales price ratio in Washington, CT, you can expect to pay just around 89% of the last listed asking price for the home. However, we have to consider a few things.

  • Original list to sale price, average for the year in Washington, CT is 80.67%
  • Last listed price to sales price, average for the year in Washington, CT is 88.91%
  • Days on market until closed average for the year is 380 days
  • Amount of homes on the market & the absorption rate* average for the year is 41 months, but at the end of October was 92 months

(*the absorption rate is the number of months it will take to sell the current inventory, if no other homes come on the market)

Washington CT list to sales price ratio

Washington CT home sales 2012
Putting the numbers together, what does it mean? There are certainly a few factors that affect pricing. In many Southern Litchfield County towns, like Washington, a large percentage of the homes sold are second homes. Luxury real estate is a different animal. Not to say that owners don't need to sell, because there are those that are in need, however the mindset is different. Often times there is no rhyme or reason to a price, and when we see the actual sales price as compared to the original list price, in conjunction with the average days on the market, you can see that pricing is almost irrelevant.

Look at the number of days on the market, adjust your price accordingly.

When you do decide that you have found the house you want to make an offer on you should be prepared to negotiate. You should also be prepared to walk away if the owner isn't willing to negotiate enough to make the numbers work. And I believe it is a must to make the purchase contingent on the house appraising, especially if you are paying cash. There is no protection that a lender would provide you with a mandatory appraisal for the mortgage if you pay cash.

Any offer, cash or mortgage purchase money, should be contingent on the home appraising.

Another thing we often hear is that a buyer feels they have to renovate and want to consider that in the price offered. If the work needed is because of deferred maintenance, you can certainly reflect that in the offer. But if the kitchen has to be renovated because you cannot tolerate the Brazilian Soap Stone counter tops and you must replace them, you really can't figure that into the price.

We will pull all these stats for you before putting in an offer.

We will make sure you understand the current real estate environment before you make your offer. We believe it is imperative that you understand the local market and how it relates to your purchase.

Start your home search here, or give us a call at 860.946.0686.

We will be most pleased to introduce you to your new home!
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Andrea Swiedler, Realtor, Southern Litchfield County Real Estate

2017 President, Greater New Milford Board of Realtors

2017 Connecticut Magazine 5 Star Realtor

 

 Search homes for sale in Litchfield County, CT.

 

Coldwell Banker Residential Brokerage

Litchfield County Regional Office,375 Danbury Rd, New Milford, CT 06776

 

© Andrea Swiedler 2009 - 2017

 Always do right. This will gratify some people and astonish the rest. - Mark Twain

Comment balloon 16 commentsAndrea Swiedler • October 10 2012 03:57AM

Comments

WOW!!!!!! Some very Interesting Info!!  keep up the good work and good luck with your business,  E

Posted by Ed & Tracy Oliva, The Oliva Team Arizona Agents (West USA Realty - Arizona) about 6 years ago

Andrea, an interesting way to present market statistics. Cash buyers should always spend the few extra dollars to get an appraisal just to ensure that they are making a good purchase.

Posted by Ed Silva, Central CT Real Estate Broker Serving all equally (RE/MAX Professionals, CT 203-206-0754 ) about 6 years ago

Ed & Tracy, wow indeed! Thank you, and the same to you.

Ed, getting an appraisal is very important. Cash buyers should spend that extra money for an appraisal. The proof is in the stats.

Posted by Andrea Swiedler, Realtor, Southern Litchfield County CT (Berkshire Hathaway HomeServices New England Properties) about 6 years ago

So many real estate buyers want to know what to offer...what is the norm, standard and how much less would a seller take. There is no one number, secret formula because so many variables come into play, are under consideration around and on the negotiating table.

Posted by Andrew Mooers | 207.532.6573, Northern Maine Real Estate-Aroostook County Broker (MOOERS REALTY) about 6 years ago

Andy, there are, this is just to show them what is happening in the luxury home market. I think price can sometimes scare them off, but as you can see..... list price is almost irrelevant????

Posted by Andrea Swiedler, Realtor, Southern Litchfield County CT (Berkshire Hathaway HomeServices New England Properties) about 6 years ago

Andrea, it sounds like negotiating is a big factor in getting to the final price. Definitely see the need for an appraisal for a cash buyer.

Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA about 6 years ago

Good morning Andrea. I enjoyed this post and it interested me because of my recent purchase in the Berkshires. Vacation areas are different.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) about 6 years ago

Hello Andrea....This is an interesting concept.  Usually when prices are set here...they are final. I like being able to negotiate as you all do.

Posted by Ginger Harper, Your Southport~Oak Island Agent~Brunswick County! (Coldwell Banker Sea Coast Advantage) about 6 years ago

Nicely presented. We see similar trends - second home buyers are very selective; second home sellers not always the most motivated.

Posted by Olga Simoncelli, CONSULTANT, Real Estate Services & Risk Management (Veritas Prime, LLC dba Veritas Prime Real Estate) about 6 years ago

This is an intelligent post on a relevant subject matter. From a buyer perspective, I wouldn't want to pay top dollar for a second home.

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) about 6 years ago

Andrea, giving the detail of what it is all about to go through the machinations you do for your clients should be important to all buyers.

Posted by Ginny Gorman, Homes for Sale in North Kingstown RI and beyond (RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate) about 6 years ago

Excellent post, and very interesting information you have shared with us here. 

Posted by Adam Brett, The Adam and Eric Group, Fullerton's Finest (The Adam and Eric Group) about 6 years ago
Andrea, The second home market could change drastically if the mortgage interest deduction is repealed and taken away, From what I understand that's the road we're going down. There's a nice farm, An agent could get dozens of come list me's.
Posted by Michael Blue, REALTOR - 760-889-8877, Encinitas/Carlsbad (Home Smart Realty West) about 6 years ago

That was a refreshing way to present market statistics.  Informative and helpful, and the graphs looked nice.

Posted by Kevin Mackessy, Dedicated. Qualified. Local. (Blue Olive Properties, LLC) about 6 years ago

Numbers can say anything you want them to. I am sure the reverse argument can be made. We live in an area with many second homes and there is a definite pricing that can be made. They are high end and people can afford to keep them or sell. People sell for distinct reasons. 

Posted by Erv Fleishman, Luxury Prop Specialist Realty Associates (Realty Associates) about 6 years ago

What a great report.. and an excellent explanation.  Often I see a lot of stats, but I have no idea what they mean.  Job well done.

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) about 6 years ago

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