H
omebuyers looking to save money on a home purchase may want to pay attention to specific phrases used in listings, according to a new report from Realtor.com. Listings with terms like "Priced to Sell" or similar come with an average discount of nearly $38,000 off the median-priced home nationally.

    The study found that certain value-based words used in listing descriptions are correlated with lower listing prices and can help buyers find true bargain properties during their online search. At the national level, phrases like "priced to sell," "under valued," "under priced," and "bargain" are associated with listing prices 8.5% lower on average than similar homes in similar neighborhoods.

    However, this discount varies significantly across different markets, both in terms of the discount amount and the density of listings with these phrases. The study found that homebuyers in Southern and Midwestern markets can expect the largest discounts on properties listed with "priced to sell" in their listing description.

    The top 10 metros with the largest discounts on "Priced to Sell" homes include Little Rock, AR (-23.0%), St. Louis, MO-IL (-18.7%), Charleston, SC (-15.9%), and Memphis, TN-MS-AR (-14.5%). On the other hand, markets with the smallest discounts are almost exclusively in Florida and Western markets.

    The study used a hedonic pricing model to determine whether for-sale listings being described as "priced to sell" are actually discounted. The analysis found that there is an effect on listing prices with this and similar phrases, and that homebuyers can expect significant savings by targeting these key phrases during their online search.

    Realtor.com's senior economist, Ralph McLaughlin, noted that the variation in discounts across markets can be explained by the share of listings with such listing terms. Buyers in markets with few listings that are "priced to sell" may be more sensitive to characteristics associated with a lower than usual listing price, such as home condition.

    The study's findings suggest that homebuyers who spend time looking at listings and targeting key phrases like "Priced to Sell" can find true bargain properties during their online search.