List Price to Sales Price, What should I offer?

Posted by Greg Smith on Monday, November 21st, 2011 at 5:04pm.

Monday Market Stats and Facts

 

List Price to Sales Price from a Buyer’s and Seller’s perspective.

As Buyers become more sophisticated one question I hear quite a bit is “what is the average List Price to Sales price for the market?”  Buyers will then use this number to justify an offer on a property.  I agree with Buyers that this is not a bad idea to gain an overview of what is the average built in for negotiations in any given market.  In the end it is going to be based on the given home and how well the Listing agent is able to communicate the value in the home to the other agent and their Buyer.  In the Chart below we have pulled the top selling brokerages in Boulder County and the findings are interesting when we look at original list price to sales price.

list_price_to_sales_page_1_400

RE/MAX Alliance tops list the while maintaining a 96.6% list price to sales price ratio; compared to RE/MAX of Boulder at 95.9% of list price to sales price; and Wright Kingdom at 93.4%.  What this shows us is RE/MAX Alliance appers to be maximizing the sales value of their clients statitically. 

From a Seller’s perspective the chart is intersting since one of the reasons Seller’s hire an agent is to set a price and implement a marketing plan is to maximze value.  One of the most effective tools to see how well an orginizazion is performing for their Sellers is to look at the last years List Price to Sales Price Ratio.  This chart is very different than the look how many properties we have sold, since chart is about the end result for the Seller and how much money they net at the end of the day.  It will be a much better world when we as an industry start to step up and present the facts that matter to the consumer such as the chart above instead of the ego charts we usually see.

If you are a numbers person and want to know the facts, let us know we have some of the most sophisticated market data available and can provide the data points to help make an educated decision just visit us at www.boulderhomesource.com

Greg Smith

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