LBI Real Estate Listing Price and Sale Price Ratios
- Dec 8, 2018
- 3 min read
Average Listing Price and Average Sale Price Ratios in the Long Beach Island Real Estate Market
Long Beach Island Real Estate
When looking to make an offer on a home in the LBI real estate market it is helpful to understand the current market trends, especially LBI Real Estate Listing Price and Sale Price Ratios. I am often asked how much negotiation room there is for a home on LBI and while there is no simple answer to this question, understating LBI Real Estate Listing Price and Sale Price Ratios is a great place to start. I have put together some information about the average spread between both the current listing price and the original listing price of a home to better understand this statistic. This is helpful in not only being able to better identify where to start an offer on a home but also if a home is overpriced and if it is better to wait before presenting an offer to buy a home in the Long Beach Island real estate market.
LBI Real Estate Listing Price and Sale Price Ratios
Below is a simple chart I put together showing the average ratio of sold single family homes in the Long Beach Island real estate market over the past 12 months. This is for single family homes only, the most common form of sale on LBI, and shows the ration for both the current and the original listing price.
Month | Close Price to Original Price Ratio | Close Price to List Price Ratio |
Jan | 93.40% | 93.80% |
Feb | 92.30% | 95.60% |
Mar | 94.60% | 95.30% |
Apr | 95.60% | 96.20% |
May | 94.60% | 95.80% |
Jun | 95.50% | 96.40% |
Jul | 95.50% | 96.40% |
Aug | 93.30% | 95.90% |
Sep | 95.10% | 95.70% |
Oct | 95.10% | 96.20% |
Nov | 94.40% | 95.00% |
Dec | 93.60% | 93.60% |
As you can see from the sales data above there is a rather predictable ratio between the listing price and sales price of a single family home in the LBI real estate market. Taking the average of the past 12 months the closing price was 94.41% of the original listing price and 95.41% of the listing price at the time of sale. As I mention above, there are homes that will sell for less than this amount and some homes that will sell over full price. This data shows however that in a "normal" transaction (meaning a home in a good location that is priced well for the market) buyers can expect to pay somewhere around 5% less than the asking price of a home.
Buying a Home in the LBI Real Estate Market
When looking to make an offer on a home on Long Beach Island understanding the data above can go a long way to demonstrate to a seller that you are a serious and educated buyer. This can make your offer better received and could potentially save you money on your Long Beach Island real estate transaction. Looking at current LBI real estate listing price and sale price ratios are one of the best ways to predict current market trends and determine where a starting offer should begin. For more information about buying a home in the LBI real estate market please do not hesitate to contact me.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
