Price as a Function of Market Time
Assuming a “For Sale” home is well-prepped, priced and marketed, is there a way to know how much it sold 
for prior to closing, when the number will become public?
That is, without finding out from the Buyer, the Seller, or their agents (who shouldn’t be sharing that information)?
Rules of Thumb
A good starting point is that Twin Cities homes are now fetching, on average, about 94% of their last asking price.
That means a home listed for $300k will usually sell in the low $280’s.
But, that number varies with market time.
Inversely.
At one extreme, the freshly-listed $300k home that’s almost immediately under contract likely sold for only a slight discount — or even a premium, if it attracted multiple offers.
At the other extreme, the “For Sale” home that was sitting at $300k since last September and just got a deal, almost six months later in early March, very likely got discounted more than the average 6%.
“10 Showings, $10k”
Which makes sense: most Sellers (and listing agents) will test a well-chosen list price for at least a few weeks.
Only after the home has been exposed to the market and found wanting will most Sellers consider a price reduction (average: 3% to 5%).
Or the equivalent: accepting a deal at 10% (or more) below their asking price.
Once upon a time, Realtors used to say, “10 showings, $10k.”
Translation: if 10 well-qualified Buyers represented by good agents view a home and pass, the price is likely (at least) $10k too high.
Except that at $300k (vs. the average home price of $220k), the indicated price reduction is more like $15k.
“Inquiring Minds & Nosy Neighbors”
So, who wants to know what a “Pended” home sold for prior to closing?
The list includes Appraisers trying to figure out how much the house down the street is worth; Buyers contemplating making an offer on a similar home nearby; and neighbors about to list their home (would-be Sellers).
Plus: the Realtors involved with all those deals; the Buyer’s and Seller’s family and friends; and not least, the proverbial “nosy neighbors.”
Long list, huh?
P.S.: My standard advice to my “Pending” Sellers (under contract but not yet closed) is to respond to any inquiries with a friendly but generic, “our deal is progressing but isn’t final yet. We’ll be happy to share what we got once the sale closes on [pick date].”
See also, “Nurse! I Need a Price Reduction, Stat!”
