The RMLS Comparative Market Analysis (CMA) report shows the percent difference between sales price and final list price. While doing some research on Short Sales, that later sold as bank-owned properties, I found some very interesting numbers.
11 out of 14 listings had some huge price drops. The following numbers showing the discount from the original sales price as a short sale and then from the bank’s original listing price.
- 88.1% 94.7%
- 75.4% 96.6%
- 66% 98.8%
- 92% 80% (In this case the bank actually went above the original Short Sale price. Dumb.)
- 87% 91.5%
- 80% 100%
- No short sale 73%
- 67% 86%
- 82% 91.3%
- No short sale 91.2 %
- 81% 98.3%
I have seen many numbers average about 97% in many cases from Last Listed Price. Remember that people raise the price to include closing costs which again interferes with this number making it less meaningful.
None of the numbers help much except it shows just how badly some agents are pricing homes. I don’t create the typical CMA in part for these reasons. I don’t like artificial numbers and it can become distracting to rectify all of the them.
I pull the listings and then look over them with my clients while comparing individual similarities and difference with their home to help find a price because that is what buyers are doing. Once again, if these useless statistics mattered we wouldn’t need appraisers and Zillow wouldn’t need an algorithm to create their Zestimates. It’s an art as much as it is a science.
