What You Need to Know About Sales Price to List Price Ratios
There are 3 reasons you as a Buyer need to know what the term Sales Price to List Price Ratio means. This term appears in the column of data in a Comparable Marketing Analysis report (referred to as comps) that Buyers study when analyzing the purchase of a home. The significance of this ratio can mean a lot.
1. Definition of Sales Price to List Price Ratio
The Sales Price to List Price Ratio shows the final sale price of a home compared to the asking price. This ratio reflects whether homes are selling above, at or below list prices.
A home with a sale-to-list ratio of greater than 100% means that a buyer paid more than list price, while a sale-to-list ratio less than 100% means that a home sold for less than the seller’s asking price.
2. Indicator of the Value of Homes
When you decide to move you are not only moving yourself and your belongings. You’re also moving your equity. This ratio is a good barometer of the appeal and strength of an area.
Neighborhoods are somewhat like mutual funds. Some funds/neighborhoods outperform others. Some neighborhoods retain higher values than others year after year. Where would you want to put your money? In an area where sellers are getting 95-98% of what they ask for or 90% of the asking price? Which areas retain value and are better for resale?
It helps you to know what kind of offer to make on a home. Knowing the numbers helps you to also manage your expectations. If you know homes in a subdivision are selling at 97% of the asking price a low offer will not help you get an accepted contract. We as Exclusive Buyers Agents, can provide you with additional data and analysis to take a closer look at each home, how long has it been for sale and its condition to help put together your offer.
Ratios Values and Comparables Vary By Subdivision
Just getting the basic numbers by zip code area isn’t enough. You will want to get more specific information focused tightly on the area you’re interested in. We can do that for you. Call Finding Home for You at 636-532-4200 or email firstname.lastname@example.org and get the data before you shop! Remember we work for you the buyer only!
One of the important ingredients in establishing home values is the quality of schools. Even if you don’t have school age children the school district is important to the resale value of a home. Typically the better the school district the better the home values. We’ve included it as a way to search for homes by school district on our site.
You’ve heard that St. Louis is a Seller’s market and according to the numbers below it is. The data presented here covers the time period of June 2016 to May of 2017.
Click the School District to See Homes for Sale
Get the data. Get with someone who knows the data and can use it to help you. If you’re not familiar with a Comparative Marketing Analysis contact us and we can send you an example. We love sharing the tools with Buyers to bring you up-to-date with what’s happening in this crazy real estate market. If you would like to see what the market is doing right now where you live click here call us at 636-532-4200 today!