| |
| |
|
Real Estate Information |
|
|
Why Average Sale Price Statistics are Misleading
One of the most common statistics used when gauging the strength of an area's real estate market is the average sale price of its homes, but looking into that figure more deeply reveals just how misleading it can be. When listing a home for sale, most realtors establish a price for the home based on market comps of the area - taking into account what other houses sold for and how the home they are listing compares to those. That price is a gross sale price, however, and doesn't reflect what the home owner actually receives from the sale. The difference between the gross sale price and the amount with which the seller actually gets to walk away from closing is affected by a number of factors. Most people would be surprised to discover that home owners in hot U.S. real estate markets like California, Florida or Las Vegas often receive offers for their homes that actually exceed the asking price. That is because in almost all other U.S. cities, statistics suggest that a realtor usually secures an average sales price of only 92 to 95% of the listing price. In addition, a number of other costs must be subtracted from that figure as well:
After all costs are figured in, the seller often walks away with only 75 to 85% of what the house "sold" for. This should not reflect negatively on realtors by any means - their services are still very much in demand and are invaluable for many home owners - but the more people realize the difference between what their home sells for and what they actually net, the more the number selling their home through "non-traditional" methods continues to rise. It's easy to find two houses on the same street in any neighborhood in the U.S. where the seller who sold their house for a higher price actually received less money at closing. If real estate prices were discussed in terms of net price to the seller rather than gross sales price, more home owners would discover that, for them, alternate channels for selling their home are more profitable than going through a realtor. Duane LeGate is president of House Buyer Network, one of America's largest networks of home buyers. Since 2002, they have helped more than 45,000 families and individuals who needed to sell a property fast-processing more than $7.5 billion in property during that time.
MORE RESOURCES: This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Google News |
|
|
|
RELATED ARTICLES
As a Realtor, How Do I Attract Listings? Have you ever noticed that despite the massive number of Realtors in your area, only a hand full are making a fortune selling real estate? Regardless of who these realtors work for; GMAC, Century 21, REMax, they are extremely successful where others in their office are barely scraping by. What is the secret to their success? First and foremost, it is their approach to marketing themselves and their customers. Property Investing Secrets 5 Property Investing Secrets:How To Work With Agents And Get What You WantWhen you're property investing, it is important to know how to connect with real estate agents. Here are some techniques you can use when you are out there pressing the flesh. 4 Dangers In Flipping Real Estate If you have recently purchased some real estate for investment purposes, you are in good company. Recent reports suggest that as many as 25% of these purchases are made by those who plan on using the property for investment purposes only. Real Estate Investing - So You Want to be a Landlord! Is landlording the way to go if you are starting into real estate investing today?Receiving cash flow from rental residuals is an exciting idea. If the rental housing is congregated in large apartments within a focused area, the costs of management and maintenance are more economical. At Home In Your Overseas Home Homeownership, in any form, is a big step for most people. In fact, it's often one of the biggest financial decisions of our lives. Buying Land Online In the old days people generally only bought land and improved Real Estate in the areas in which they lived or traveled often. Today, thanks to the blossoming of the Internet, one can purchase land all over the United States from the comfort of home. Vegas: The New Frontier Unless you have been living in Siberia, you know that Real Estate is on fire in many places around the country. In fact, you would be hard pressed to find a city where this was not the case. Is Second Home Ownership In Your Future? According to the National Association of REALTORS (NAR), a record 2.82 million second homes were sold in 2004. Purchasing Property With No Money Down: My Personal Experience Have you ever seen those infomercials about buying houses with "No Money Down?" They are really well done. They have all kinds of people offering great testimonials about how they have gotten rich, buying rental properties, with absolutely no money out of their pocket. The Nose Knows If you plan on getting the most from the sale of your home you better be sure it can pass the "sniff" test. Let's face it your home should smell good. Horses In My Back Yard Horses In My Back Yard by Jody Hudson, with Extensive Collaboration From Chris Hudson HORSE LOVERS: During my thirty years of selling rural land, I have frequently found that folks want some acreage so that they can own and ride horses. They LOVE horses in their own mind but have little if any of the real knowledge or experience necessary to raise one or more horses. Dramatic Profits From Preconstruction Real Estate Investing The preconstruction process is an innovative real estate investment opportunity in which you buy tomorrow's property at today's price. Preconstruction investing is a boon for the investor or buyer as well as the developer or builder. Get To Know About Building Codes & Town Planning Applications, If You Want To Build A House These are real building questions that I received from readers of my e-book, "Residential Development Made Easy" with answers from me, Colm Dillon, and a major USA Construction Master operating in 48 States.Question 1. Flipping Fixers: Using Transformation Psychology for Top Dollar Satisfying and lucrative real estate investment depends upon your correct assessment of profit potential, of course, but your ultimate success depends on your ability to transform a fixer into a dollhouse. The renovation process involves physical work and choosing the best supplies, in order to create maximum positive emotional effect and profits. Why Canadian Real Estate is Such Good Value Real estate agents, Canadian citizens and foreign investors interested in the Canadian property market are all in agreement - as Canada becomes a more desirable place to live year on year so property investment in Canada becomes a more attractive prospect year on year.Furthermore, because property in Canada is high quality, plentiful, incredibly affordable and easy to purchase, real estate in Canada is good value across the board. Top Tips for Buying and Selling a Home BuyersLooking for a home-Use Internet for overview of properties, communities, and schools.-Visit potential neighborhoods at different times of day. Safe, Scenic & Secure Sussex County Delaware As I write this, there is a considerable concern about the dangers of urban life, triggered by the terrorist attacks on the USA. As some of you know, I have been a student of disaster preparations and a real estate consultant for those seeking "secluded and survival properties" for over thirty years. How To Find a Real Estate Agent You may be of the opinion that you don't need a real estate agent and that using one will add to the cost of buying your new home.The fact is that a real estate agent's fees are typically paid by the seller of the home. Tax Deferred Exchanges of Investment and Business Real Estate The Primary Residence taxation, the Residential Replacement Rollover, Sec. 1034 exception is gone. Avoiding A Bad Investment Is Easier Than You Might Think Human nature being what it is, none of us can get serious about the idea of buying a house without experiencing at least a few small twinges of worry. What we fear, of course, is making a mistake.
|
| home | site map |
| © 2006 TIGER MEDIA |