According to the latest information available from the Realtors Confidence Index survey, the price discount for distressed property relative to non-distressed property is in the neighborhood of 15 to 20 percent.
What does this mean for REALTORS®?
On average, non-distressed property is basically a different market from distressed sales. Many Realtors® have indicated that distressed properties are not meaningful comps. Realtors® have also mentioned that they caution clients interested in non-distressed properties not to expect the same level of discount to market as is the case for distressed properties.
Jed Smith is Managing Director, Quantitative Research with the National Association of Realtors®. He has worked on real estate issues for the past 20 years, providing input on a variety of housing, commercial real estate, tax, and planning issues. Recently he has been involved in several international studies.
On March 9, 2012, in Did You Know, by Jed Smith, Managing Director, Quantitative Research
Nancy Alert, International Real Estate Specialist