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Monday, February 15, 2010

Why is the Offer Received so Different from the Offer Expected?

Real Estate Appraisers don’t give a darn about statistics.  They care about only two things…the most recent sales and closest properties that most nearly match the subject of the appraisal.

Real estate agents and sellers use basic statistics to determine list prices.  (They should use "sold prices" in their calculations as list prices are "hoping to get" prices!)

Real estate agents and buyers use statistics when they determine an offer price.  These two prices, listed and offer, are rarely the same.  Why?

Because, even if they use the statistics, they don’t necessarily use the same data – thus the results offer received is can be different than the offer expected!

Of course,  there are other reasons such as they see the condition of the house as less than the seller views the condition.  I have found that when buyers start nitpicking and criticizing they are setting me up as their buyer's agent to justify a low ball offer they are considering!

They see the market as declining and they don't want to over pay.  I will admit that statistics such as the median price (half sold are higher, half are lower) and average (or mean, where you add all prices up and divide by number of prices) can be manipulated to suit the user's intent.

In some subdivisions like Phillips Landing in Rockledge, the past 12 months shows the median sales price to be $184,000 and the average sales price at $190,000.

In Rockledge's Ashwood Lakes, the average sales price for the past 12 months was about $162,000 with a median of $155,000.  There were five houses that sold for $155,000 - short sales if I recall correctly.

Prices - list price, offer price, and sale price - must all be based in logic and statistics - not hope alone!

For information on Brevard County Florida, real estate, call me at 321-693-3850 (321-255-2600 office) or email me.   

Gary Waters, Florida licensed real estate agent, Bucci Realty, Rockledge Florida working on an exclusive basis with Century 21 Baytree Realty in central Brevard County Florida!

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