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And by this I mean, how many properties typically sell for asking price? How many sell for under? How much under?
I have a realtor friend that recently showed me stats for her company over the last year (she works for a group that has about 30 agents). I was shocked to see that about 93% of houses in my area sell for asking price. Of those that do not, 4% go for ABOVE asking price, and the remaining 3% go for under asking price. The average for the under asking price was 2.5%.
I live in a major urban area where housing costs are high and stock is somewhat limited, especially for single family homes. This greatly impacts the transparency of the market and the ability to negotiate as a buyer.
What is the market like in your area? Curious. I know this is not typical.
Those stats indicate that agents at that firm are quite skilled at pricing.
Negotiating is a means to an end. If market value is accurately represented in pricing, then the need to negotiate a lower price to attain reasonable value is lessened.
"Transparency?" I don't see how there is any connotation or meaning that applies.
Where I live and work:
88 resale closings recorded on MLS in my area of town in the last 30 days. Not filtered for short sales or foreclosures. No closing costs paid for the buyer by the seller are factored in.
Average sales price to last list price is .97. That has historically been .97--.98 for years. Many agents price to hit those numbers.
High sales price to list price was 103%
Low sales price to list price was 88%.
Last edited by MikeJaquish; 12-26-2013 at 08:19 AM..
Those stats indicate that agents at that firm are quite skilled at pricing.
Negotiating is a means to an end. If market value is accurately represented in pricing, then the need to negotiate a lower price to attain reasonable value is lessened.
"Transparency?" I don't see how there is any connotation or meaning that applies.
Where I live and work:
88 resale closings recorded on MLS in my area of town in the last 30 days. Not filtered for short sales or foreclosures. No closing costs paid for the buyer by the seller are factored in.
Average sales price to last list price is .97. That has historically been .97--.98 for years. Many agents price to hit those numbers.
High sales price to list price was 103%
Low sales price to list price was 88%.
By "transparent" I meant, does asking price actually connote sales price? Is it obvious what the place will sell for?
I lived in New Orleans where there was very little transparency. A condo could be priced at $400K and sell for $250K while an identical unit next door sold for $375K. It was all over the place.
In the market I am in now, this is not the case. Asking price is pretty much getting price.
By "transparent" I meant, does asking price actually connote sales price? Is it obvious what the place will sell for?
I lived in New Orleans where there was very little transparency. A condo could be priced at $400K and sell for $250K while an identical unit next door sold for $375K. It was all over the place.
In the market I am in now, this is not the case. Asking price is pretty much getting price.
Selling price knowledge provides the needed transparency. Asking price is just a solicitation.
With the consideration of comparable selling prices, a proper price range for the subject property will be revealed.
Ergo, again, the agents in the firm you mention are very good at culling through data and helping price listings.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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We are running an average of 98% of asking price,
Our median sale price is $650,000, an increase of 16.2% over a year ago, with inventory dropping by 50% over that time. We are still seeing homes in the $400-500k range selling in 107 days with multiple over over asking with those over $800,000 taking as much as 100 days to sell.
These are the most recent numbers I can find on median prices in my area:
March median sales price by jurisdiction 20132012YoYDC metro $372,500 $345,00 8% Falls Church $631,000 $458,300 37.7% Arlington $515,000 $509,450 1.1% Alexandria $487,500 $391,950 24.4% District $460,000 $405,000 13.6% Fairfax County $430,000 $398,500 7.9% Fairfax City $392,500 $443,750 -11.5% Montgomery County $375,000 $345,000 8.7% Pr. George’s County $176,500 $158,000 11.7% Source: RealEstate Business Intelligence
What is it they say, liars figure and figures lie?
My market is SO transparent, it is VERY easy to see when agents have manipulated the numbers.
Funny, how a house will sit at $xxx for 13 months, then have a price reduction FINALLY to $zzz and voila........listing goes to pending immediately and sale is closed and reported selling at 100% of list price.
What is it they say, liars figure and figures lie?
My market is SO transparent, it is VERY easy to see when agents have manipulated the numbers.
Funny, how a house will sit at $xxx for 13 months, then have a price reduction FINALLY to $zzz and voila........listing goes to pending immediately and sale is closed and reported selling at 100% of list price.
Very true. So perhaps a better indicator would also include how long a place in on the market.
Its interesting, though. In my market, its much more common for sellers to drop a price in order to get more offers at the cost that THEY decide, rather than consider an offer beneath asking price from a buyer.
My coworker has been looking for a SFH in what is considered a "low" price point. She had one that she loved, but it was listed about 10K above what she was comfortable paying. She made a lower offer and was rebuffed by an "insulted" seller. Just a week later, the seller dropped the price by the same amount that she had offered, and several offers came in. The place went under contract almost immediately, but not to her because the seller was still annoyed by her "low ball" initial offer.
By "transparent" I meant, does asking price actually connote sales price? Is it obvious what the place will sell for?
I lived in New Orleans where there was very little transparency. A condo could be priced at $400K and sell for $250K while an identical unit next door sold for $375K. It was all over the place.
In the market I am in now, this is not the case. Asking price is pretty much getting price.
I think most people will define transparency differently. Transparency is - can people get the actual information. Lack of transparency would be - you can't find out what the sold price is.
I think most people will define transparency differently. Transparency is - can people get the actual information. Lack of transparency would be - you can't find out what the sold price is.
Okay, what would a better term be for what I am trying to describe?
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