List Price vs. Sale Price in Coconut Grove
April 17th, 2009 | categories: Coconut Grove Real Estate
I was going over some numbers this morning and noticed something interesting.
Single family homes in Coconut Grove that were on the market for 60 days or less had a list price to sale price ratio in the 80% range. When they stayed on the market for 60 days or more their list price to sale price ratio rose to the 90% range.
These numbers bring a few thoughts to me. First, they dispel the belief that all homeowners are less negotiable when their home first comes on the market. Second, it could be that a majority of the homes that went under contract in less than 60 days were in a distress situation – they were priced well to attract offers and were willing to take a significant discount off the asking price. The key in this market is getting offers.
Bear in mind that these figures come from only 21 properties, the total amount of closed sales recorded this year. I would say that 90% is a more typical ratio and probably where a majority of the sales lie in Coconut Grove. If you take a look at all of Miami-Dade County, the sale price to list price ratio is approximately 89%.
Whatever you make of the numbers, it is just more reason to go ahead put in an offer now as opposed to waiting. If you don’t someone else may beat you to it.
Thank you, Riley. Of the 21 sold homes, could you please tell me how many were listed 60 days group?
There were 7 sales that were sold in less than 60 days, mostly lower end homes with the exception being Calvin Kato’s house on Matheson. His house had been on the market then went off the market for 6 months, then came back on and sold within 60 days.
Homes that have been on the market for more than 60 days have probably also had a price reduction. I’d be interested to see what the numbers would look like if you took the original listing price and compared it to the final closing price. I would bet then that the ratio would be well under 90%.
Hi Riley, thanks for the info. I was wondering though if those 21 homes you used were more or less im the same price range. I was only wondering because I see that the really big price differentials on list vs ask are in the over 1.5 million category. What do you think?
On the day of this post there had been 21 sales of single family homes this year. So I used all 21 in the calculations. Of the 21, the homes were in all price ranges from lower to higher end.