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List Price / Sales Price Ratio - What are the real numbers?

By
Real Estate Agent with Long & Foster 0225078705

Have you ever looked at the list price sales / sales price ratio and assume nothinga adds up?  98% LP/SP ratio sounds great if taken at face value, but when you look closer it is not such a good dea for the seller or even your buyer if you are the buyers agent! l if the seller paid $6000 in closing costs.  The sellers net changes substantially, but market statistics appear very healthy!  Another item tha is not considered in most final sales ratios are what is the real ratio from the very original listing price?  Let's suppose we are looking at a home that the days on market were only 29 days, and sold at a 98% LP/SP ratio.  What if it was really on the market at $249,900 a year ago...was withdrawn for 30 days, came on the market again at $244,900 and expires several times, perhaps even a different agent.!  LOL!  Does this sound like the real world in real estate everyday?  So when the seller actually has amomnet of clarity and finally lists teh property correctly - why doesn't the final sales price represent actual days on market, and reflect all price reductions of the ADDRESS.

Agents / brokerage stats need to reflect all.

Posted by

James Crawford Broker Associate

Long & Foster Fredericksburg Virginia

678-595-5286 Direct

 

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Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Jim,

Our MLS recently put the "Archives" link at the top of the listing page.  It shows price reductions, original listing price, and dates of statusor price changes.  I love it, but I see some agents who have already found a way around THAT.

Probably then going out and presenting how they sell everything in 4 days or less...

Feb 01, 2007 08:16 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA
Well in the Atlanta FMLS which is our primary MLS - I noticed when doing a CMA that it mentions Seller contributions, but does not automatically deduct them.  Since over 52% of every loand written in the state of Georgia last year was a 100% Interest only loan it goes with out saying that the seller is paying closing cost more than we are used to!  Since closing costs are typically 2.5 - 3 %  The sellers net is also off by that amount!  The sellers need to be aware of all the actual costs involved!  This does not take into consideration previous earrlier list prices.  It should!
Feb 01, 2007 01:44 PM
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Agreed, Jim.

We work hard to offer a clean assessment.  And then hope we are right.

Feb 01, 2007 01:53 PM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA
Sometimes...in real estate I feel we are like the old accountant joke!  "How much is 2 + 2?"  and the accountant answers "How much do you want it to be?"
Feb 01, 2007 03:16 PM