May 21, 2012
There are lots of numbers in real estate. Here are a few interesting figures I found within our local 2012 year to date market.
A sample of the currently offered lakeshore properties revealed that the average Seller asking price is about 130% of the County established Market Value. (The overall range from the selected group was a wide 69% to 213 %.)
The Market Value St. Louis County assigns to any given property is defined by the County as follows:
“Market Value is the price a willing, knowledgeable buyer would pay for your property if it were offered for sale on the open market. The assessor does not create this value, but instead interprets what is happening in the marketplace. Values change with economic conditions as well as changes to the property.”
Interestingly enough, the average selling price for a selected group of 2012 lakeshore property sales was right on par, i.e. 100%, of the County Market Value. (The overall range from the selected group was a wide 53% to 165 %.)
What’s the message behind this information? Although it’s not surprising, I would suggest it confirms that negotiation is a common element in many successful sales. Potential Sellers should anticipate that negotiation will be required to sell in the current market. Buyers should realize that good values are not necessarily realized in the advertised offered price but in the final negotiated selling price.
If you have questions about the numbers behind the numbers, send me a note.