Your home should be listed at a price that will attract the attention of the most good buyers. Buyers are generally well informed before they make an offer. If they are attracted to your home, visit it, and like it, they will think seriously about how much more they like it than other homes they have inspected. Your list price affects how successfully your home is marketed. It does not determine the value that informed buyers perceive your home to have. Buyers make their own judgment about its value.
South San Francisco Sales Price vs. List Price
It is quite helpful to know the sales price vs. the list price for South San Francisco homes. This provides a reference to understand typical expectations and negotiations.
Looking at the sale price vs. list price for South San Francisco houses shows that the typical sale-to-list price ratio varies significantly over time. A first assumption would be to set your list price to match the historical sale-to-list price ratio. Thus, for example, since in 2021 roughly 65% of houses sold over list price, with an average sale price of about 107% of the list price, you might think the home should be listed at about 93% of its expected sale price. However, this could be a mistake. You need to compare the sale price of homes that sold over list price to the sale price of homes that sold under list price.
Sales Price per sq.ft. For Homes Listed Over The Expected Sale Price
A rarely seen real estate trend is the sale price per sq. ft. of homes, as a result of the list price.
The first graph above (sales price vs. list price) shows that most often the actual sale price was lower than the list price. However, the graph immediately above (price for homes sold above vs. below list) shows that you would most likely receive a lower sales price than a comparable home would if you listed it based on its expected price.
However, it is important to note that simply listing your home at a low price does not guarantee you will get a better sale price. The 2009 through 2011 period shows that a high list price was associated with a higher sale price. Pointing out some of the low vs high list price periods:
- Prior to 2007, a low list price vs. a high list price made no significant difference in recorded sales.
- In 2007, a low list price could bump up your sale price from about $425 sq. ft. to $490 sq. ft.
- From 2009 through 2011, a low list price could reduce your sale price from about $300 sq. ft. to about $250 sq. ft.
- In 2012, a low list price still reduced your sale price, but the reduction was smaller.
- From 2013 through 2017, results flipped with a low list price leading to a slightly higher sales price.
- In 2018, the gap widened to roughly $750 sq. ft. vs. $630 sq. ft. The extreme gap in 2018 foretold a flattening of price growth.
Summary
There are many factors that affect setting a good list price. Neither a median value nor an average value can be simply picked. Attention has to be constantly paid to many different real estate trends. You must understand how current market trends interact and the factors that cause them.
For instance, we looked at whether a 2-bedroom house sold for more or less per sq. ft. than a 3-bedroom house. Looking at the many trends we track showed that a 2-bedroom house was typically 20 years older than a 3-bedroom house. Of course, age affects the price of a home. Simply comparing sales prices does not tell you about the impact of having 2 bedrooms rather than 3.
When selling your home (or buying), it is important to work with an experienced real estate agent who analyzes many areas, tracks data carefully, and continually studies market behavior.
How many agents can show you the impact of listing your home at a price either above or below the expected value? We can provide an up-to-date graph for South San Francisco. Work with the best South San Francisco real estate agents. The small Juliana Lee Team provides more sales information than any other agent or team. 22,000+ graphs of Silicon Valley real estate market data are posted online. Even more is available when meeting face-to-face.
The Juliana Lee Team: 650-857-1000 | [email protected] | julianalee.com