Here is an example of what the MLS (Multiple Listing Service) statistics reveal when using them to help price a house that is going on the market.
This graph is data from the past year regarding the median list price versus the median sold price for all single-family homes in the Dripping Springs Independent School District. As you can see, in general, the homes listed on the MLS were listed at higher prices than the price for which they eventually sold. The exception is this month. (Do you think a single spectacular sale skewed the numbers? Maybe. We need to look at the coming months to find out)
This graph is one of many data points I can generate when helping a selling client decide on an asking price for their house. This is a graph I would use in passing to demonstrate how a majority of homes in this school district start off being priced higher than the market says they should be.
Graphs such as this one are points of interest when anticipating the market for your home.
In preparing for your home listing, I look at all the homes that have been sold recently in your area, the sold homes that are similar to yours, the average days on market compared with price per square foot, the current listed prices of homes similar to yours, the number and quality of upgrades on your home and homes of similar size in your area, and many other parameters.
Knowing the numbers helps you to be smart about pricing your home to be the most desirable in your market. Smart price, quick sale, most money in your pocket.
Next up: The Cost of Having Your Home on the Market.