Original and Reduced Closing Price in the Long Beach Island New Jersey Real Estate Market
A question that often comes up is how the ORIGINAL listing price correlates to the sales price for a home in the LBI real estate market. This is a valid question, especially when looking at a home that just came on the market. Each month I publish a sales update that covers the average sales price, days on market and list price to sale price ratio however this ratio is specific to the current listing price-not the original listing price. When looking to buy a home in the LBI real estate market an examination of LBI real estate close price to list price ratio, including the original listing price for a home on Long Beach Island, can be very helpful.
LBI Real Estate Close Price to List Price Ratio
The chart below shows the average original listing price to closing price ration as well as the final listing price to closing price ratio (divided by sales price) for homes mostly under $1,000,000 thus far in 2018.
|Sale Price||Close Price to Original Price Ratio||Close Price to List Price Ratio|
|$0 – 100,000||92.00%||96.00%|
|$100,000 – 150,000||88.30%||93.70%|
|$150,000 – 200,000||97.80%||97.80%|
|$200,000 – 250,000||95.60%||95.60%|
|$250,000 – 300,000||92.90%||92.90%|
|$300,000 – 350,000||95.10%||95.50%|
|$400,000 – 450,000||96.80%||97.10%|
|$450,000 – 500,000||97.00%||97.00%|
|$500,000 – 600,000||95.60%||95.80%|
|$600,000 – 700,000||95.90%||96.30%|
|$700,000 – 800,000||95.70%||96.50%|
|$800,000 – 900,000||95.50%||97.30%|
As you can see from the data above there is a great difference (in most cases) between the original price and the final sales price ratio. Even 1%-2$ less for a home in the LBI real estate market translates to several thousand dollars. When looking to buy a home in the LBI real estate market it is very important to keep in mind the current market activity and how current trends should guide an offer. If a listing is competitively priced than there is a very good chance it will sell close to list price. If it seems high, as a buyer, one should not be afraid to offer a lower number, provided it is still in line with the overall LBI real estate market.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org
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