Buying 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)
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!
Andrea Swiedler, Realtor, Southern Litchfield County Real Estate
2017 President, Greater New Milford Board of Realtors
2017 Connecticut Magazine 5 Star Realtor
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