What is the Price Discount and What does it say about the Market?

The "price discount" is the percentage difference between the seller's initial asking price and the actual purchase price of the same home. For example, if a Denver home were priced at $200,000 and sold for $190,000, the discount would be 5 percent. Price discounts are usually reported as an average for a set of home sale transactions. Be sure, when you ask your Broker to provide this data to you, that they include the amount of concessions made as well. The Denver MLS includes the information about concessions and the price discount in their solds data. (Concessions are the dollar amount the home seller provided to the buyer in the form of funds towards closing costs, carpeting allowances, etc. and represent a price discount as well.)

A small price discount percentage, on average, means the market favors sellers, while a large average discount signals a buyer's market. This is important neighborhood data to have for Denver home sellers and buyers, another indicator of the desirability of purchasing a home in a given neighborhood. Data for the Denver housing market varies dramatically between neighborhoods and price points, so be sure you have all the right data!

Best Regards,
Marie