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.

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.

http://bloggerinterrupted.com/2009/01/rich-people-are-either-really-stupid-really-screwed-or-both-and-sitting-at-top-of-an-iceberg

emailing callahan.

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.

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?’

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.

Thanks for all the time and thoughts. I could NEVER go into real estate!

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.