What is Your Average List-Price-to-Sales-Price Ratio?

[lylej]

Homes <250K very often sell at or above asking price. Multiple offers usually dictate this.

[satxproperty]

Homes <250K very often sell at or above asking price. Multiple offers usually dictate this.

But why? Is there a shortage of houses or land to build on? And how do they appraise if the comps supported the list price?

[lylej]

Home prices have fallen so much that when a REO is listed, very often there are several offers at one time if the property is still desirable. What starts out at 90% of list price can go for over 100%. This usually is restricted to the short-sales and REO's.

[satxproperty]

Home prices have fallen so much that when a REO is listed, very often there are several offers at one time if the property is still desirable. What starts out at 90% of list price can go for over 100%. This usually is restricted to the short-sales and REO's.

Thanks, that answers my question... the houses are priced low to begin with and not in line with the comparables price.

[lylej]

That is correct. However, all other homeowners get hit, as now the comparables get adjusted accordingly.

[donnalong]

That is correct. However, all other homeowners get hit, as now the comparables get adjusted accordingly.

In some neighborhoods the only comparables an appraiser has to work with are foreclosure sales.

[lylej]

You are correct Donna, that is the sad but honest truth. Entire communities getting drilled.

[Portland Real Estate]

Note that this ratio is very community dependent. In some areas where there is a glut of supply it can be as much as -10% while in other areas it will be -1%. I'm sure that during the boom years it was positive in some areas.

[Mark Washburn]

In the Fort Myers Florida area, our selling prices averaged 94% of listing price for 2009. Here is a blog post about this selling to listing price ratios: http://www.gulfreturns.com/2010/01/l...g-in-2009.html