Steve Gott, an Independent Real Estate Agent answers the question “what is a median house price”.
For many sellers, hearing the words median price can cause confusion. So, what does median price mean?
We’ll take you through how the median price is determined, and how it can help you when selling your own home.
Median Price and Selling Your Home
The median price is a selection of home sales where the sale price of these homes sits in the middle of those properties sold.
If 75 homes were sold for the month in a suburb the home sitting at number 36 is considered as the median priced home for the suburb for the month.
- Median sale price is only a guide to what is selling for around that price range.
- Median sale price doesn’t not take into consideration special hidden features of every property.
- Median price is more a middle of the range figure.
However every home has unique features and hidden value that has to be taken into consideration when pricing a home. Agents can’t just say one number fits all.
The Importance of Research when Selling
When a seller wants a certain price for their home, they should do more research. The REIQ recommends that every seller seek the opinion of at least 3 different agents on price.
Agents should provide their seller with a Competitive Market Analysis (CMA) and not just present any figure based on the median price of homes in the area.
- A CMA should contain at least 3 properties that are similar to the sellers home.
- These properties sold prices will vary by about $20,000 to $40,000 from the lowest to the highest sale.
- Each CMA also contains days on the market. This figure is the most critical number in the CMA.
Days on the Market
Days on the market is the most valuable piece of information a seller can use to sell their home and achieve the highest sale price.
By selecting 6-8 of the homes in all of the CMA’s from the agents that is closest to the sellers home and looking at the days on the market for these homes, which will range from as low as 2 or 3 days to sometimes as many as 190 days or more, is a big clue to what is happening in the market place.
The most natural reaction from a seller is that a home sold in 2 or 3 days has been given away. And for a home that has sold in 190 days the owners received what they wanted in price.
The opposite is more likely the case. A home that sells in the first 14 days is more likely going to sell for the highest sale price than a home that takes longer than 30 days to find a buyer.
How we help our clients
At Gott Realty, we do our research for our sellers.
- We provide an in-depth report for the seller on pricing a home for the market so that the seller achieves the best possible sale price.
- We select homes that are very similar to the home of the seller.
- Days on the market is a critical component of the report. With a maximum of 90 days on the market being used in the report.
- We believe that homes sold in the last 90 days is a true reflection of the market place and number of buyers in the market place.
- What the seller receives is a truly accurate report on the price expectation of their home.
- We respect every sellers right to place a price on their home that they feel is what it is worth.
If you want to find out what price your home is worth, give us a call and we can organise a time to have a chat and go over what we believe the selling range is for your home.
Top Tips for Selling – What is a Median House Price?
Thinking of selling your home? Speak to Gott Realty today!
If you’re looking for a real estate team that is honest, respectful and always acting in your interests, speak to us today about how much your home is worth.
Our team has unprecedented access to local property data and insights, and we are here to help you sell your property for the best price possible with the least amount of stress.
Gott Realty service Albany Creek, Eatons Hill, Cashmere, Warner, Lawnton and Bray Park and many more areas across North Brisbane. Learn more here on our blog.