So you want to buy under market value in Cleveland, OH?

[Federico Gutierrez]

As a Realtor and member on BP, I see Cleveland is hot market for new and seasoned out of state investors. Many want to buy under market and at a discount. But the facts sometimes aren't available at your fingertips so I'm hoping to assist and open to feedback. 

For this example I'm focusing on Parma OH and I'm pulling data straight for the MLS. I personally like to use Parma because it's a B grade area, not many foreclosures in this area to skew prices/results. Plus every investor says the numbers don't lie.

So forewarning: All data has been captured and plotted MONTHLY for the last 12months and solely for the CITY of PARMA. MLS realizes on Realtors entering the correct information of the listing and the sale price.

Number of NEW listings for the last 12 months has steadily been around 150. You do a see dip during the winter months (slower period in RE) Dec - Feb. This is also a reason I liked to use Parma as new housing stock remains constant.

Now for the following NOTE that the prices of homes takes into consideration single family and multi-family homes. Sadly they can not be separated. Also this the MEDIAN Price not the AVERAGE. If you do not know the difference, google is your friend.

You can see that in March sellers were just shy of listing their properties of $120,000. In general thou list price is greater than $100000 over the 12month period. 

I like this part, because this is what I believe put's it in back and white. Especially for anyone asking for under market priced homes. Buyers are negotiating down very little from what the seller is asking for their property. You can see Feb was a good month for buyers but usually buyers are paying 97-98% of the sellers asking price. 

So what does this mean? If you negotiate at 95% of the asking price you technically are getting a property for under market value. Just some information I wanted to share with BP members interested in the Cleveland Market.