Market Conditions in 55302>Question Details

Eroberts, Both Buyer and Seller in 55302

What is the average list-to-sales price percent or ratio in this area? I'd like to know how much homes are selling below/above list price.

Asked by Eroberts, 55302 Tue Jun 1, 2010

Help the community by answering this question:

Answers

7
The percentage of list price to sold price in Wright County during a period from Dec 2011 thru Nov 2012 is at about 94%. That is up from the last 2 years which were 93% and 90% respectively. In just the Annandale zip code, (55302), the stats are Dec 2011 thru Nov 2012 - 92.2%. The prior two years were 88.5% and 89.5%. As you can see the averages are improving. This could be because of better pricing to begin with as we have adjusted to the new normal market. Average sale price was $202,298 in 2010, then down to &191,482 in 2011 and then in 2012 it has risen 9.9% to $210,479. These stats are indicating good news in the market here.
1 vote Thank Flag Link Tue Dec 11, 2012
Really good advice from Steele.

Unless you're asking because you're writing a dissertation on the economics of real estate, the answer to your question really won't help you in either pricing your home for sale or making an offer on a home to purchase.

I come at this more from an investor perspective, but when you're buying a home, forget the list price. Don't even look at it. It doesn't matter. What matters is how much the home is worth--and that might be more than or less than the listing price.

But, I can hear you say, "Shouldn't the listing price be close to what it's worth?" Yes, but the operative word is "should." It often isn't.

And I can hear you say, "But I've been told that you should offer x% under the listing price. I'm just trying to figure out what that is in Wright County." Sorry, but you've been told wrong. You can end up overpaying or underpaying by basing your offer on the listing price.

Besides: Let me give you an example:

Suppose a house goes on the market at $300,000. It doesn't sell. The owners reduce the price to $285,000. It still doesn't sell. They reduce the price to $270,000. They get an offer, negotiate back and forth, and finally sell for $265,000 with a 3% seller subsidy.

Now, if you looked at the raw numbers, you'd see that the house had been listed for $270,000 and sold for $265,000. So you'd assume it sold for 98% of the list price. Not bad, huh?

Problem is: It really, actually sold for $257,000. And so it really sold for 95% of the $270,000 listing price.

But . . . that wasn't the original list price. Remember: The original price was $300,000. So, really, the house sold for 85% of the original listing price. And what that means is that if you'd seen the house when it was first listed for $300,000--and someone told you that houses in your area sell for 98% of the list price--you'd have made an offer at $294,000--98% of $300,000. And thus you'd have overpaid by $37,000.

So it's really risky to make any offer based on a listing price. You need a Realtor to run a CMA to tell you how much the home is really worth.

Same for selling your home. What you want to do is to make it very competitive with the other comps. And that means looking at what other similar homes have actually sold for.

Hope that helps.
1 vote Thank Flag Link Tue Jun 1, 2010
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
List price is not a good indicator of anything in reality. A home can be listed for any amount the seller wants. You need to look at sold data.
0 votes Thank Flag Link Tue Jun 1, 2010
Eroberts, all good advice here. It says on your profile that you're a buyer AND a seller. I don't know for which part of your transactions you are making this inquiry, but suffice to say, you do nee do to your homework to make sure you know the prices that homes are actually selling for, regardless of the list vs. sale price ratios. Some houses are overpriced, some are under.

If you're asking as a seller, make sure you price your home carefully depending on your desires.

If you're asking as a buyer, make sure you know what prices the type of home you want in the area you seek are selling for. That will not only be the criteria by which YOU should make a decision, but the same criteria will be applied to the appraiser's decision as well.

Good luck!
Web Reference: http://www.homestosellmncom
0 votes Thank Flag Link Tue Jun 1, 2010
In my experience, if the property is priced well, using appripriate comparables and prior sale data, homes now on the market, and, of course, the expected number of individuals who would be likely purchasers. All salespeople and brokers who are part of the MLS system can readily access all necessary data. Remember, your agent is the best resource, costs you nothing, and helps you acquire everything - data, information in all dimensions likely to affect the sale or purchase of a property and helps you sell and buy at the best price possible in your circumstances according to your goals and needs.
0 votes Thank Flag Link Tue Jun 1, 2010
Eroberts,

See the attached link for accurate and up to date info on your question specifically, but keep in mind that List:Sales ratio can be a misleading statistic as some list prices reflect a fair market value but others may be well above...and some below of course. When making or considering an offer, it's best to use an updated market analysis on the property specifically as a starting point, as opposed to a ceratin percentage above or below list.
0 votes Thank Flag Link Tue Jun 1, 2010
Averages are just that, averages. Be more concerned that the property is well priced or not. Just because the ratio might be 96%, it doesn't mean you can take off 4% of any asking price.

Instead concentrate on the market value of the particular property. If a house is overpriced you still lose if you use these ratios. If underpriced, someone else will get the house, not you.

Basic negotiating 101. Be able to justify your offer.
0 votes Thank Flag Link Tue Jun 1, 2010
Too bad you folks don't live in California. There, sellers--especially of high-buck properties--will actually increase their asking price if buyers aren't willing to pay the full original asking price. In that world, if buyers see a higher price, they will attempt to match it, even if it's well above the original asking price. And the strategy works. Must be something in the water.
Flag Mon Nov 3, 2014
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer