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2 Comments on Advantage to sellers to use a Realtor
I don't know the stats that are being referred to, but most people use whichever will better support their point.
If you are math savvy (well, mean vs average savvy) skip the following paragraphs.
Just remember that "the mean" (or median) is the exact middle of the pack, group, whatever. In the case of home sales, on half of the houses sold for more, one half for less. If the majority of FSBO sales placed below the mean and the majority of realtor sales placed above the mean, NAR might be correct.
Average sales price can be even more misleading than mean. If, in a zip code, 11 homes sold in a month, for a total of $2,200,000 dollars, the average sale price is $200,000. However, if one sold for $1,100,000.00 that means, while the average of all eleven homes was $200,000.00, the average of the 10 that did not sell for $1.1 million is only $110,000.00.
Average makes sense when giving someone a grade for a semester, or year, or a coures.
Mean makes sense when trying to show things like incomes, or home prices.