This data answers the question, “How much did they sell it for compared to how much they put it on sale for?”
Though always interesting to look at, Percent of Original List Price can be a bit of a troublesome metric to hang your hat on…for a few reasons. Mainly, if the home is priced properly, at a value that the seller is happily willing to accept and the buyer is happily willing to pay, then it should sell at 100% of list price. When the property is priced properly, list price = the value of the home, reflecting condition, construction and the current whims of the market, and everyone can walk away happy from a fair and square deal.
So, in a market where all homes are priced properly, all homes will sell at 100% of what they originally asked for.
Oh, that such a land of reasonable sellers could exist! The women in such a land would be strong, the men would be good looking, and all the children would be above average(forgive the Prairie Home Companion reference, please).
In our current market conditions, which have been described recently as “normalizing” and “balancing”— nice ways to say the crazy feeding frenzy of Northern Colorado real estate may be taking a pause for a minute, it will be normal to encounter sellers of real estate who wish the blood was still in the water. Why? It was a mad seller’s market, and appreciation skyrocketed. Sellers became accustomed to thinking they can put their home on the market for whatever they want, and someone will buy it. Though that’s not true, and has never really been true, that’s what people have been hearing through the grapevine here in the Northern Colorado real estate market for years.
So, it would not be surprising to see a gap in what seller’s expected to get for their home compared to what they actually walked away with.
It would not be surprising for a Realtor® (like me) to put a home up for sale, having told my sellers that I think the list price is too high to be competitive, but since I work for them, as long as they heard my counsel, I’ll do their bidding, and put it on the market at a price that might be a bit too high.
It happens. When you sell your home with me, you are in charge. I do analyses and home valuations and I pull comparables and I’ll suggest a price. But in the end, it’s your house. It’s your price. I’ll tell you if I think the price is too high, but I’ll let you drive the ship.
When a home is put on the market at a price that is a bit too high, and then the sellers realize this and accept an offer that is less than list price, the gap between original list price and price it sold for surfaces.
That is the data we examine here.
So, without further ado, our chart detailing Median Percent of Original List Price Versus Sold Price
Median Percent of Original List Price Versus Sold Price
COOL FEATURE! Hover or tap chart lines to see time specific data points!
Data Provided by InfoSparks – Supplied to IRES MLS
And, just for the heck of it, here are the numbers calculated using ‘Average’ instead of ‘Median’