The Key to Understanding Proper Price Positioning
How close will you get to your list price? We are asked this almost everyday, and although we do not have that ever-so-elusive crystal ball, we can best answer it by sharing Mike Balzotti’s insight on Trading Ranges.
Russ Lyon Sotheby’s International Realty receives wonderful tidbits from Mike every week, information that adds perspective and highlights trends.
The “list-to-sales price ratio” is the percentage difference between the average list price for properties at the time of sale versus what the listing ultimately sells for – in other words, how close to the asking price sellers are getting, or the average “discount” buyers can expect.
The Trading Range is important to Sellers as well as Buyers.
Notably, The Trading Range is historically consistent – in good markets or bad, the range always falls between 2% and 5% or 95% to 98% of list price.
Sellers listing their homes outside that range or buyers making offers outside that range will likely result in an unsuccessful outcome.
See Mike Balzotti’s video on the link here for additional insight:
httpv://youtu.be/OrokSQXkibs