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The Home "Pricing Disconnect"

by Maureen McCabe on October 18, 2007

Pricing

A client used those words recently, “pricing disconnect.” I can’t tell you the context of the conversation.. confidentiality you know…

 

Yes there is a “disconnect” between the prices of homes on the market and the prices of homes that sell. In the graph above the green line is obviously what homes for sale are priced at. The red line is the price that homes sold for.

 

There is a disconnect.

 

The graph is for homes (single family and condominium) in Franklin and Delaware Counties. The chart shows the past 15 months ending September 2007.

 

If a seller priced their home based on the competition and the neighbors are not priced competitively (with what has sold very, very recently) … the new listing will have that same pricing disconnect …  Priced the same as the rest of the neighborhood which is not selling.

Sold/List Diff. % 97 97 96 97 96 96 96 96 96 97 97 97 97 97 96

Above is the frame fro the table of stats for the graph above with the difference between the sold price and the final list price (the list price the seller was at when they went under contract) for the past 15 months ( Full Table) Homes need to be priced within about 3 to 4% of the market value. Yes some buyers will make an offer on an overpriced listing and get it at a greater discount. That is probably true in all markets (sellers market, normal market, buyers market…

 

September 2007 homes in Central Ohio (Franklin and Delaware counties sold with in 96% of list price.

 

If a “seller” doesn’t need to sell and prices the house to reflect that, they will be with a large school of homeowners who while their home is on the market they really are not sellers.

 

Isn’t the September 2007 average sale price 81% of the average list price?

 

Real Living HER is the only brokerage in Central Ohio with TrendGraphix graphs….

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