When Words Matter: New Realtor.com® Report Finds Key Phrases in For-Sale Listings Can Lead to Big Savings
A new report from Realtor.com reveals that certain phrases in home listings can indicate significant savings for buyers. Nationally, listings with terms like 'Priced to Sell' offer an average discount of nearly $38,000 off the median-priced home. The study found that such 'value' phrases correlate with listing prices 8.5% lower on average than similar homes in comparable neighborhoods.
The impact varies across markets, with discounts ranging from 23.1% in Little Rock, Arkansas, to 3.2% in Orlando, Florida. Southern and Midwestern markets tend to offer the largest discounts. The frequency of these phrases in listings also differs, from 1.9% in Long Island, New York, to 6.7% in Sarasota, Florida. The study suggests that buyers in markets with fewer 'priced to sell' listings may be more sensitive to factors associated with lower prices, such as home condition.
Un nuovo rapporto di Realtor.com rivela che alcune frasi negli annunci immobiliari possono indicare risparmi significativi per gli acquirenti. A livello nazionale, gli elenchi con termini come 'Prezzo da Vendere' offrono uno sconto medio di quasi $38.000 rispetto alla casa con prezzo mediano. Lo studio ha scoperto che frasi come queste, che indicano 'valore', sono associate a prezzi di listino mediamente 8,5% inferiori rispetto a case simili in quartieri comparabili.
L'impatto varia tra i vari mercati, con sconti che vanno dal 23,1% a Little Rock, Arkansas, al 3,2% a Orlando, Florida. I mercati del sud e del Midwest tendono a offrire i maggiori sconti. Anche la frequenza di queste frasi negli annunci varia, dal 1,9% a Long Island, New York, al 6,7% a Sarasota, Florida. Lo studio suggerisce che gli acquirenti in mercati con meno elenchi 'prezzo da vendere' potrebbero essere più sensibili a fattori associati a prezzi più bassi, come le condizioni delle abitazioni.
Un nuevo informe de Realtor.com revela que ciertas frases en los anuncios de viviendas pueden indicar ahorros significativos para los compradores. A nivel nacional, los anuncios con términos como 'Precios para Vender' ofrecen un descuento promedio de casi $38,000 sobre la casa con precio mediano. El estudio encontró que estas frases de 'valor' se correlacionan con precios de lista 8.5% más bajos en promedio que casas similares en vecindarios comparables.
El impacto varía según los mercados, con descuentos que oscilan entre 23.1% en Little Rock, Arkansas, y 3.2% en Orlando, Florida. Los mercados del sur y el medio oeste tienden a ofrecer los mayores descuentos. La frecuencia de estas frases en los anuncios también varía, desde 1.9% en Long Island, Nueva York, hasta 6.7% en Sarasota, Florida. El estudio sugiere que los compradores en mercados con menos listados 'precios para vender' pueden ser más sensibles a factores asociados con precios más bajos, como la condición de la vivienda.
Realtor.com의 새로운 보고서에 따르면 주택 목록의 특정 문구가 구매자에게 상당한 절감을 나타낼 수 있다고 합니다. 전국적으로 '판매할 가격'과 같은 용어가 포함된 목록은 중간 가격의 주택에 대해 평균 $38,000의 할인 혜택을 제공합니다. 연구에 따르면 이러한 '가치' 문구는 유사한 이웃에 있는 주택보다 평균 8.5% 낮은 목록 가격과 관련이 있습니다.
영향은 시장마다 다르며, 할인율은 아칸소주 리틀 록에서 23.1%에서 플로리다주 올랜도에서 3.2%까지 다양합니다. 남부 및 중서부 시장은 가장 큰 할인을 제공하는 경향이 있습니다. 목록에서 이러한 문구의 빈도도 다르며, 뉴욕주 롱아일랜드에서는 1.9%에서 플로리다주 사라소타에서는 6.7%로 나타납니다. 연구는 '판매할 가격' 목록이 적은 시장의 구매자가 주택 상태와 같은 낮은 가격과 관련된 요인에 더 민감할 수 있음을 시사합니다.
Un nouveau rapport de Realtor.com révèle que certaines phrases dans les annonces immobilières peuvent indiquer des économies significatives pour les acheteurs. À l'échelle nationale, les annonces contenant des termes comme 'Prix à Vendre' offrent une réduction moyenne d'environ $38,000 par rapport à la maison de prix médian. L'étude a révélé que de telles phrases de 'valeur' sont corrélées à des prix d'inscription en moyenne 8,5% inférieurs à ceux de maisons similaires dans des quartiers comparables.
L'impact varie selon les marchés, avec des réductions allant de 23,1% à Little Rock, Arkansas, à 3,2% à Orlando, Floride. Les marchés du sud et du Midwest ont tendance à offrir les plus grandes réductions. La fréquence de ces phrases dans les annonces varie également, allant de 1,9% à Long Island, New York, à 6,7% à Sarasota, Floride. L'étude suggère que les acheteurs dans des marchés avec moins d'annonces 'prix à vendre' peuvent être plus sensibles aux facteurs associés à des prix plus bas, tels que l'état de la maison.
Ein neuer Bericht von Realtor.com zeigt, dass bestimmte Phrasen in Immobilienanzeigen auf erhebliche Ersparnisse für Käufer hinweisen können. Bundesweit bieten Listings mit Begriffen wie 'Zum Verkaufspreis' im Durchschnitt einen Rabatt von fast $38.000 auf das medianpreisige Haus. Die Studie stellte fest, dass solche 'Wert'-Phrasen im Durchschnitt mit Listenpreisen 8,5% niedriger korrelieren als ähnliche Häuser in vergleichbaren Nachbarschaften.
Die Auswirkungen variieren je nach Markt, mit Rabatten von 23,1% in Little Rock, Arkansas, bis 3,2% in Orlando, Florida. Südd und mittlere Westenmärkte bieten in der Regel die größten Rabatte. Auch die Häufigkeit dieser Phrasen in den Listings variiert, von 1,9% in Long Island, New York, bis 6,7% in Sarasota, Florida. Die Studie legt nahe, dass Käufer in Märkten mit weniger 'zum Verkaufspreis'-Listings möglicherweise empfindlicher auf Faktoren reagieren, die mit niedrigeren Preisen verbunden sind, wie den Zustand der Immobilie.
- Listings with 'Priced to Sell' phrases offer an average discount of $38,000 nationally
- Value-based phrases correlate with 8.5% lower listing prices on average
- Some markets offer discounts up to 23.1% for 'Priced to Sell' listings
- Southern and Midwestern markets tend to offer the largest discounts
- Discounts vary significantly across markets, with some as low as 3.2%
- The frequency of 'Priced to Sell' listings varies widely between markets, potentially limiting opportunities in some areas
Insights
This report from Realtor.com provides valuable insights for homebuyers and real estate investors. The analysis of "value" phrases in property listings reveals potential opportunities for savings:
- Nationally, listings with phrases like "Priced to Sell" offer an average discount of
$38,000 off the median-priced home. - These listings are typically priced
8.5% lower than similar properties in the same area. - Discounts vary significantly by location, ranging from
23.1% in Little Rock, AR to3.2% in Orlando, FL.
For investors, this information can be leveraged to identify potentially undervalued properties. However, it's important to note that the effectiveness of this strategy may depend on local market conditions and the prevalence of such listings in a given area. Markets with fewer "priced to sell" listings may offer more significant opportunities for savvy buyers.
From a financial perspective, this report highlights an interesting market inefficiency that could be exploited by astute investors:
- The substantial price differences associated with specific listing phrases suggest potential arbitrage opportunities in real estate markets.
- In top markets like Little Rock, AR, St. Louis, MO and Charleston, SC, discounts range from
15.9% to23% , representing significant potential savings. - Even in markets with smaller discounts, such as Orlando, FL (
3.2% ) and Seattle (3.7% ), the savings on high-value properties could be substantial in absolute terms.
Investors and funds focusing on real estate could potentially develop algorithms to quickly identify and act on these "priced to sell" listings, creating a competitive advantage in property acquisition. However, it's essential to conduct thorough due diligence, as these listings may sometimes indicate underlying issues with the properties.
Terms Like "Priced to Sell" Come With an Average Discount of Just Under
"We have all seen listings with terms like under valued, priced to sell and bargain, and we wanted to find out if those terms actually came with a price reduction," said Ralph McLaughlin, senior economist, Realtor.com®. "We found there is a relationship between key value phrases and listing prices. For a keen eyed buyer who is willing to spend a little time looking at listings, targeting these key phrases might be a great place to start."
Certain "value" based words used in listing descriptions are correlated with lower listing prices, and can be used to help homebuyers find true bargain properties during their online home search. At the national level, phrases such as "priced to sell," "under valued," "under priced," and "bargain" are associated with listing prices that are
However, this varies substantially across metros, both the discount associated with such phrases as well as the density of listings with them. The average discount ranges from
"Much of this variation can be explained by the share of listings with such listing terms, suggesting that buyers in markets with few listings that are "priced to sell" may be more sensitive to the characteristics that are associated with a lower than the usual listing price–such as home condition–than buyers in markets where such listings are more common," said McLaughlin.
Discounts Largest In South and Midwest
Homebuyers in Southern and Midwestern markets can expect the largest discounts on properties listed with "priced to sell" in their listing description.
10 Metros with Largest Discount on "Priced to Sell" Homes
Market | Average | Median Listing | Discount on | % of Listings |
-23.0 % | 2.6 % | |||
-18.7 % | 2.7 % | |||
-15.9 % | 3.9 % | |||
-14.5 % | 3.0 % | |||
-12.6 % | 2.8 % | |||
-12.5 % | 1.9 % | |||
-11.5 % | 2.1 % | |||
-11.4 % | 3.0 % | |||
-11.2 % | 2.8 % | |||
-10.9 % | 3.0 % |
On the other hand, markets with the smallest discounts are almost exclusively in
10 Metros With Smallest Discount On "Priced To Sell" Homes
Market | Average Discount | Median Listing Price | Discount on Median Listing | % of Listings "Priced to Sell" |
-3.2 % | 4.8 % | |||
-3.7 % | 2.8 % | |||
-3.8 % | 3.7 % | |||
-4.0 % | 4.6 % | |||
-4.3 % | 4.6 % | |||
-4.4 % | 4.1 % | |||
-4.4 % | 6.7 % | |||
-5.2 % | 4.8 % | |||
-5.5 % | 2.4 % | |||
-5.8 % | 3.6 % |
Methodology
To determine whether for-sale listings being described as "priced to sell" are actually discounted, we tested whether there is an effect on listing prices with this and similar phrases using a hedonic pricing model. First, we looked at the all single-family homes listed for sale on Realtor.com in the
We then estimated a hedonic model to determine the effect of the bargain term on the home's listing price while controlling for the number of bedrooms, number of bathrooms, square feet, lot size, age, and zip code of each property. This allowed us to estimate how much of a discount properties with such terms were listed for, on average, than similar properties within the same metro without a bargain term. We used a
Only metros where the listing term coefficient was significant were considered true "priced to sell" markets. Among the 100 largest
About Realtor.com®
Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
Media Contact: Mallory Micetich, press@realtor.com
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SOURCE Realtor.com
FAQ
What is the average discount for homes listed as 'Priced to Sell' according to Realtor.com's report?
Which U.S. city has the highest discount percentage for 'Priced to Sell' homes?
What is the average percentage discount associated with 'value' phrases in home listings?
Which regions tend to offer the largest discounts for 'Priced to Sell' homes?
