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Jan
23
I don’t know a lot about real estate so I’m hoping maybe Carole of Cleveland Real Estate News will help me out here but this is just a shocking thing to look at – kinda like that visual of all the older white men around Obama? So, just as readers gave context to that Gitmo closure signing photo (even though the context proves my point further about the historical exclusion of women and minorities from the upper ranks of the military), I’m hoping Carole can put this in perspective.
Here goes – it’s from Howard Hanna’s website:
Homes For Sale In Pepper Pike, Ohio
Homes On The Market – 73
Average size – 3,747 Square Feet – 3 bed, 3 bath
Average List Price - $652,590
List Price Per SqFt. $164.65
Average Days On Market – 141Homes Sold In Pepper Pike, Ohio (Last 3 months)
Homes Sold – 12
Average Size – 4,146 Square Feet. 4 bed, 2 bath
Average List Price – $427,491
Average Sold Price - $379,241
Average Sold Price Per SqFt. $103
Average Days On Market – 115Right now, homes sold in Pepper Pike, Ohio are being sold at $103 a square foot on average and for 86% of their asking price.
Okay, Carole – what does this mean?
By Jill Miller Zimon at 10:26 pm January 23rd, 2009 in Cleveland+, Economy, Housing, OH17, OH24th, Pepper Pike
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12 Responses to “Pepper Pike housing average sale price is $300K under average asking price”
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Hiya Jill ! Well, I went to the computer listing service to see what I could glean. Here is what I have:
there are 78 homes listed for sale now in Pepper Pike. The average listing price is $307,967, and $108 a square foot. These homes have been listed for an average of 146 days.
There are six homes under contract right now. Lowest list price is for a $164,900 home on Fairmount Blvd and highest list price under contract is for a $949,900 home on Red Raven (interestingly enough, this house was only on market one day…I have a feeling they had a buyer ready to go lol)
I did sold homes two ways, first going back to beginning of last selling season. Since march: 66 homes have sold. The average listing price was $484,900 and $442,100 sale price (on average) and $132/sq ft. These homes were on the market for an average of 130 days before selling.
Then I did the stats for three months, as you did. Here is what I got
13 sales. Average list price was $461,454, the average sale price was $407,596 and $105 a square foot. They were on the market an average of 140 days.
A bit of a discrepancy between my website and multiple listing service. I can understand why the last three months can be a bit different, since it can take 48 hrs for multiple listing service info to get fed into the Hanna site.
So my stats are close to yours as far as sale price per square foot, but I don’t see as much of a difference between the list price and sale price.
I’m getting 88% of listing price. What is certainly true, from lowest to highest priced markets, sale prices are down close to an average of 28%.
Does this help at all?
LOL – I am really at a loss – I think I get what you’re saying about how the 3 mos thing really skews stuff.
I guess I’m curious – with a $300K differene between average asking price and average sale price – don’t people who ask so much realize they won’t get it and it won’t move? What’s the deal?
I looked at some other towns from that Hanna site and no one had a spread like Pepper did. Are Pepper people just stubborn or what? lol
I guess I’m asking – in your experience – what accounts for that huge discrepancy?
First, just so you know, that site is another blogger’s who is also a Hanna agent lol. I was wondering and browsing the Hanna site seeing if they had added something I didn’t know about. LOL
However, back to your question. Sellers are getting a bit more realistic, but not in all cases. Sometimes a seller will say they want to list it for what they want, regardless, and are willing to let it sit there for a while (meaning they don’t need to worry about mortgage payments, more likely, although not always, to happen with higher priced homes since incomes are higher.) Some sellers tell me, why not list a lot higher, people will offer what they want anyway.
I try to give my professional opinion, which is that even in higher market value neighborhoods, people tend to search for homes in price range they want to pay, not what you are listing it for! lol
Some agents will list it anyway; and some agents are just not as familiar with all the neighborhoods. Although doing their own research should tell them what the listing price range should be, they don’t always get it right.
It’s a hard pill to swallow, having to list your house lower than you would have three years ago. But that is the reality.
Sometimes, also, a house gets listed at the price it should be if it doesn’t need work…but it does need work!
Sometimes the amount owed on a mortgage makes it hard for a seller to agree to a lower list price.
So what did I say in a long-winded way: bad judgement on part of sellers listing too high; not enough persuasion on part of listing agents to get the price where it should be.
one more comment. What you do get from these stats is the last list price and the sale price. What doesn’t show up, is whether or not a house was listed prior to this listing, at an even higher price! Just thought I would throw that in
You’re the best Carole.
I saw a few listed for foreclosure that I’d look at but couldn’t figure out where they are. We’re considering renovations but the economy is just so shakey.
Thanks for all the time and thoughts. I could NEVER go into real estate!
it means rich people are stupid?
ROFL! No doubt Tim, no doubt. But worse – well, maybe not worse how about – but still, I think it also means they overvalue, aren’t realistic, don’t realize that the world is a lot smaller than they realize re: who could possibly afford what they’re trying to sell at the price they’re trying to sell it.
And – with all due respect to Carole who I KNOW is not like this: some of the real estate agents are probably, “Sure! Ask that!” since it brings a bigger commission, yes?
I just think it reflects horribly but I don’t really know real estate. I would see that and think, “are these people crazy – no one will pay that.”
And…no one IS paying that.
Tim almost made me spit my morning coffee
The one stat that surprised the heck out of me is that 900k – ish house that sold in one day. It adds to the puzzle, because yes, a few very expensive homes (to me that’s a fortune! lol) do sell.
One thing always amazes me. When you are a buyer you are very good at figuring out how to determine good listing and sales prices; when you are a seller….not so much ! Sometimes I have repeat clients and I say to them ‘remember when we were looking to buy this home?’
Jill, I could be wrong, or too naive, but, why I think some agents are willing to list at an unrealistic price:
1. they hope to get the home owners to change their minds in a few weeks. They sometimes write into the contract, after three weeks, price adjustment will be forthcoming if no buyer activity reported.’
2. They are afraid of their own professionalism and too timid about asserting themeselves on prices.
jill, i think you’ve put your finger on the tip of an iceberg.
http://bloggerinterrupted.com/2009/01/rich-people-are-either-really-stupid-really-screwed-or-both-and-sitting-at-top-of-an-iceberg
emailing callahan.
Hi Jill,
I’m the one responsible for the market report for Pepper Pike. As I was putting it together, along with all the other cities in seven surrounding counties, this one did stand out.
One of the main reasons for the asking price and sales price difference is the specific community. This is a pretty common result in cities that have a very broad range of home prices. There are cities in Northeast Ohio and around the country that have a unique blueprint when it comes to area layout and values.
When there is even one home for sale at a million dollars and no million dollar homes have sold within the time frame of the report, you get a very high average for the asking price. This is not to say that this million dollar home won’t sell for full price (hypothetical) in the following months and then increase the sales price average. This is why I mention that they’re all averages and nothing specific to the home size, location, year built etc.
If I were to narrow down the criteria, you’d see a much different picture.
I specifically mention that all homes are included. Areas such as Pepper Pike and others may have small homes sell for $100,000 and large properties selling in the millions.
If you pick a city where homes are basically the same in value, you’ll get a different range altogether.
Take the Cleveland Heights statistics for instance listed on my blog, http://www.youshouldown.com/2008/09/cleveland-heights-real-estate-market.asp
You’ll see the numbers are startling and very low more than likely due to large amounts of foreclosures selling in that time period. There are still homes in Cleveland Heights selling for half a million dollars or more. The range of bank owned homes in need of massive repair and large estates in pristine condition are both located within this city.
If more bank owned homes or homes in need of repair are sold for that particular time period, the averages lean.
I plan to update this market report every three months and compare them to the previous, so it should be fun to watch. I also encourage anyone looking for a more in depth report of their specific area to contact me. This way they will have the real market value for their specific home, lot, amenities, etc. not just a broad, general range for the entire city.
Of course there are homes marked up beyond a realistic selling price for many different reasons; stubborn sellers, inexperienced agents, improvements that can’t be justified by appraisal by any other property sold. These cases do inflate the market and average asking prices are higher. Each home and seller is unique and different.
I make sure to mention that paying attention to the selling price (in bold) is the most important number to look at. Anyone can ask a billion dollars for a property and never get it just as they can ask $1. Selling price determines the market value only.
By the way, Gates Mills may be my favorite as far as range! http://www.youshouldown.com/2009/01/gates-mills-ohio-real-estate-homes-for.asp
Hope this helps.
Thank you so much for commenting, Cecilia – I am guessing you’re either experienced with blogs, you’ve consulted with someone who is or you are just a very sane, nice, reasonable person who realizes (kindly) that I was looking, couldn’t understand, and wrote it down, without malice aforethought.
Thanks again for taking the time to comment – I’m sure it helps others too.
I understand what you are saying about the skewing etc – yes – I saw that in Gates Mills too – what can you do, you know!?
I think Twinsburg was one city that had a very very close spread between asking and sale price – maybe 30 or 50K apart? So that would or might indicate that the stock is far more similar perhaps? Though again, probably no one single answer.