What type of home qualifies as a great bang for the buck? A new study looks through listing descriptions using the words “bargain,” “deal,” and assesses whether or not the homes were indeed a good deal.
Based on Trulia's research, homes had to be listed below their estimated value to qualify as a true bargain. In more than one-third of the 100 largest U.S. housing markets, for-sale homes were described as a "deal," "bargain," or likewise, but were actually listed at more than their estimated value. Camden, N.J., Bridgeport, Conn., and Lake County, Ill. had the most listings labeled as a "bargain," between 6.1 and 7.1 percent shares, but did not necessarily have the most best-value listings.
Meanwhile, Camden was one of the biggest markets with the most truly bargain-valued listings, along with San Jose and San Francisco, Calif., ranging between 78.8 percent and 86.2 percent of listings actually priced below the home's estimated value. Camden also had the largest discount on these homes, listed 21.1 percent less, on average, than the home's true value.
While these pricey Bay Area metros appear to have a sizeable share of deals on the market, they also see the most homes sold above asking. So, that discount on a “bargain” home in San Francisco or San Jose may actually end up costing more than you bargained for. But pickings are slim in San Francisco and San Jose – just 2.3 percent and 1.7 percent of all listings, respectively, are described as a bargain – perhaps no surprise for the priciest metros in the nation.