One of the questions we get asked frequently is “What are homes selling for”? There are a couple of ways to think about that. One is “Average Sale Price” in the market. Here is a current graph of the average price all of the residential sales closed in the county this year so far. Keep in mind that this number includes all the foreclosures, fixer uppers, tear downs etc. The average price of SOLD homes in this MLS during 2013 YTD is $165,286.
Another way to understand the market is to look at the “List to Sales Price Ratio”. This is the percent of the ASKING price that the property actually ended up selling for. This can give you a very good idea of where you would statistically end up in a negotiation with a seller in this market. For example, if a home is listed at $200,000 and the “list to sales ratio” was 93% this means that the home most probably will sell for 93% of the $200,000 asking price, or $186,000. Let’s see what the true numbers are:
Currently in our Great Smoky Mountain MLS, the average list-to-sale ratio is 93.8 percent. So in actual numbers, the home listed at $200,000 will most likely sell for $187,600. This kind of information is helpful when thinking about what kind of offer should be made on a property, and what the chances would be of acceptance.