I undertook an analysis of million dollar houses sold in Holmdel/ Colts neck area for 2009.

Asked by Househunter, Holmdel, NJ Wed Jun 23, 2010

I found that there was an average of $300,000 price difference between the listed price and the closed price. Not one Realtor I have talked to pointed this out to me - or took the trouble of doing the same study. I am amazed . . . (!) - this year so far that trend is continuing with price difference of $200,000 between the listed price and the closed price ! One troubling feature of the sale is that the closing price is not known for some 3 months ! Also once a house is sold, all information pertaining to its inside - all the photos and descriptions are removed. It then becomes impossible to compare apples to apples - I have had an unsatisfactory answer to this quest earlier from Reators on this topic - which has been that I need a Realtor (!) - well perhaps people don't have time for that kind of a relationship building - and not all Realtors are as cognizant as they should be. There is a lot of time wasted in going to and fro - I will PAY for a website that preserved original info !

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12
Mary Petti, Agent, Edison, NJ
Fri Jun 25, 2010
Househunter,

If you are referring to Trulia:
"One troubling feature of the sale is that the closing price is not known for some 3 months ! Also once a house is sold, all information pertaining to its inside - all the photos and descriptions are removed. It then becomes impossible to compare apples to apples "

Then YES once a house is sold, it's no longer on the site. As for 3 months for a sales price to show up?? I am not sure about that BUT, I do know that the MLS's almost always require the sale to be entered into their system within 24 hours of the "closing", which is immediately available to all Realtors, and the records are usually kept in the system for about 5 years.

That being said, if you want accurate information on sold homes (with pictures and descriptions) then YES you do need a Realtor to do this since we are the only ones who have access to the MLS. They can set you up to have new listings, sold listings and more emailed to you on a regular basis. FOR FREE !!
1 vote
John Sacktig, Agent, New Jersey, NJ
Thu Jun 24, 2010
House Hunter -

As a Realtor who knows the "luxury market" your questions and theory is not out of line with the current market. The tracking and research of pricing can be done with realative ease. I actually keep an eye on closed versus list prices in the luxury market. To keep your finger on the pulse of the market always helps!

Call or email and we can get you started on your way to sorting out the market in Holmdel.
1 vote
John Sacktig, Agent, New Jersey, NJ
Thu Jun 24, 2010
House Hunter,

Due diligence is the key to any transaction and it looks as though you have done some due diligence in your pricing, but your research is not complete and need someone that knows the market. You also did not call me to help you in your home search of luxury homes. There is plenty of time for relationship building, but that also works two ways. There are many people that contact me regarding million dollar properties and a great many of them are not serious buyers.

You want my time or the time of another Realtor that handles these properties then you need to make contact, express your desires and be able to offer proof that you can purchase a property in this price range.
Same as a house in the 300k range, You need a pre approval, bank statements and such. if you are just window shopping then there is a waste of time on all fronts. If you are serious about buying a home in this range, then do your due diligence on Realtors that service this market. The difference between Realtors at this point is great as there is a difference in the conversation and negotiation in luxury properties.
1 vote
Jim Lavin, Agent, Holmdel, NJ
Wed Jun 23, 2010
You should have called me, over the last 6 months I have sold more than anyone else in CN.

All my listings averaged a discount of $300,000.
2 Messenger Drive ask $2.2 mill ( 2008) sold $1.6
Laird Rd. ask $2.2 mill ( 2008) sold $1.5
44 Minebrook ask $1.3 Mill (2008) sold $.850

Your info is correct.
1 vote
James Stuart, , Colts Neck, NJ
Thu Jun 24, 2010
You must keep in mind that it is the Realtors fiduciary responsibiity to obtain the highest price possible for the home owner. (put yourself in the sellrs' shoes). Realtors typically will not track list to sales price data as a task in their daily business. Such tracking is usually done by appraisers. Also such statistical data must be interpreterated correctly. For example many homes are listed and subsequently reduced in their asking price. The question arise: is the list to sales price ratio, (whether expressed in dollars or percentage), based on the "original list price or the "reduced" list price? The weakness of computing the list to sales ratio on the "first" list price is indetermining how far above reality the initial list price was. As you can see such analysis can become complex. As to your finidings that a "million dollar house in Colts Neck sells at $200,000 to $300,000 below list is most liklely way off base. It is unlikely that a ratio of 20% to 30% is accurate in either the price range or the area. It has been my experience (35 years) that list to sales ratios' fall between 0% to an absolute 9% in most markets. Of course you will find exceptions to this but those exceptions must be closely examined. Call if you have additional questions James Stuart MAI 7320801-9720
0 votes
Joan Congilo…, Agent, Freehold, NJ
Thu Jun 24, 2010
Dear Househunter
The only place where the details of each sold listing with pictures are preserved is on MLS Multiple Listing Service & you would have to be a licensed realtor or an appraiser to have access to it. However any real estate agent you select to represent you as a buyers agent can provide you with the pending & closed comparables you need in detail with pictures & a market analysis showing the list to sale ratio price differential to make you feel more comfortable enough about making an offer on a house that you like. Every market is different & sales from last year do not reflect what is happening this year. Sales are up this year & what a seller is willing to accept is based on their individual situation., there is no magic formula, However, homes that are overpriced take much longer to sell & when homeowners get frustrated enough & finally listen to their realtors & price their homes right they sell. So that is probably why you are noticing such a gap between list prices & closed prices. If you saw the days on market on many of these homes you would see this trend. If you need assistance finding a home & are looking for a good buyers agent feel free to contact me. I will be happy to show you homes in your price range & will happily provide you with comparable sales in detail w/ pictures to help you feel confident enough to make an offer on a house that you like.It is my job, & that is what I do as a buyers agent for all of my clients.

Joan Congilose CRS, GRI, e-Pro
RE/MAX Central Manalapan
(732) 972-1000 ext:364
(732) 232-5277
Web Reference:  http://www.joancongilose.com
0 votes
Marc Paolella, Agent, Succasunna, NJ
Wed Jun 23, 2010
James,

The OP said $1,000,000 homes. Which would mean a sale-to-list ratio of 70%. If that is your average, are you pricing correctly? If I achieved a 70% average sale-to-list in my market, I would be out of business in short order.

-Marc
0 votes
Marc Paolella, Agent, Succasunna, NJ
Wed Jun 23, 2010
Househunter,

Your data is wrong. You are saying that in 2009, the average house in Colts Neck that listed for $1,000,000 sold for $700,000. I don't know where you are getting your data, but it is wrong.

-Marc
0 votes
John Skronski, Agent, Long Branch, NJ
Wed Jun 23, 2010
Dear HH (HB) in H-NJ --- I don't know your source for your analysis, but I can recommend the MLS data which will give you the best information. The data is kept, and an agent familiar with the area will offer more relevant information on homes where he/she has been inside. We'll know how to compare! The internet can be helpful, but too many sites offer too little help. Is the price disparity from the original listing price to sale price or the most recent asking price before sale? Listing price can be reduced may times if no buyers are making offers. Unfortunately, too many listings carry high, unjustified price tags. Seller's need to understand the current market conditions. Frankly i'm not so interested in a seller's asking price if I think it's out of line. No one cares how much you paid for a home, how much you owe on it etc. The only thing that matters is what an educated buyer is willing to pay. To get educated, sit down with an agent and really go over every detail of all similar properties in similar towns that have sold, are under contract, and compare them to what is currently for sale. A buyer needs to get it right! Too high an offer costs you money. Too low an offer costs you the home you want. Try to put a value on that! Talk to an agent. It will help you make the best decision.
0 votes
Al Akerman, Mortgage Broker Or Lender, Lakewood, NJ
Wed Jun 23, 2010
Househunter, if you need a good Realtor in the Monmouth County area, then e-mail me through my profile-I know a few Realtors that are willing to spend time on a million dollar sale :)
0 votes
Deborah Madey, Agent, Brick, NJ
Wed Jun 23, 2010
Hi again,

You do have to register in order to have access to sold and under contract data. That ruling is governed by MLS and association rules. There are many sites to search without registering, but the data is not as complete.

Deb
0 votes
Deborah Madey, Agent, Brick, NJ
Wed Jun 23, 2010
HI,

You can have access to sold data and under contract data. You can register at http://SearchMonmouth.com. There is no charge to register for this site. I will repost later tonight or tomorrow in response to other comments and concerns you expressed.

Deborah "Deb" Madey - Broker
Peninsula Realty Group
732 530-7755 Main
732 530-6350 Direct
732 784-8450 Mobile (Text or Voice)
0 votes
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