Sale Price and List Price Ratios

List price and sold price ratio

What are sale prices and list priceratios for single family homes in Broward County, Florida?

Close price to list price ratio. Broward. Jan 2013-July 2018
Close price to list price ratio. Broward. Jan 2013-July 2018

 

Real estate is somewhat seasonal.

If you woud look at the chart above you can see very interesting information about Broward County, FL real estate. The chart I did using all the information I had gathered from MLS of the Palm beaches and Greater Fort Lauderdale. These numbers are said to be reliable but are not guaranteed.

The chart shows the real etstate market from the period of January 2013 up untill July 2018. It is based on sales of 97,537 single family listings.

The green line in the chart shows the closed price to the list price ratio. You can see that during summer 2018 the ratio was the closest to 100% during this period. It was above 97.6%

The bigest discrepancy between closed and sold price was around the January 2015.  It was around 96.5%

If you look in more detail information, you will notice that around every January of each year, there is a close price and listing price ratio decrease. There are usually fewer homes around Christmas holidays. We usually notice the increasing number of the homes for sale after the holidays. If you look closely, you will notice the closed price and list price ratio is the highest during the summer months. Some of it has to do with people buying habits.

It is still a great time to sell.

Broward County, FL Real Estate Market Update: Homes for Sale – May 2018

Palm in front of the house in Davie, FL
Palm in front of the house in Davie, FL

It is the end of another month, May, so we can review the real estate market in Broward County, FL during this month.

Lets look at the info table I made using the information I got from MLS REALTORS® of the Palm Beaches and Greater Fort Lauderdale. Here is the current information about homes for sale in Broward County, Fl during the month of May 2018:

Market Update_Broward County, FL homes for sale-May 2018
Market Update: Broward County, FL homes for sale-May 2018

There are 4578 single family houses available for sale in Broward County, FL and 1267 new active listings during month of May.

Houses listed at the price of $251,000-$500,000 are selling the fastest, which is 39 days. This price range also has the biggest number of active single family homes- 2056, with new homes for sale 878.

The next very popular price range group is houses listed between $501,000-$750,000. There are 971 homes for sale in this price group, and 322 of those a new listings.

Median days on the market for the houses under a million dollars are about 65 days, and median  days on the market for the houses over a million is is around 140 days.

The data used to make the chart from the MLS REALTORS® of The Palm Beaches and Greater Fort Lauderdale, which has data that is deemed reliable but not guaranteed and has the most accurate and up-to-date information about local home sales.

If you want more information about local market, please look into Local Market Conditions and Home Prices category or Market Update category.

If you are looking for a house to buy or sell, please let me know. I would like to help!

What Are Comparable Sales in Real Estate?

Comparable Sales
Townhomes in Holywood, FL

Comparable sales is a term used in real estate when analyzing homes located in the same area, Those homes are very similar in size, condition and features as the comparable home. The term “comps” is also used.

Home – buyers should look at comparable sales when deciding what price to offer for a home they want to buy. Homeowners should use comps inorder to decide on a best price for home to sell.

There are 3 main things that are important in deciding on comparabes:

1. Location.

2. Timeframe.

3. Features.

 

Lets look at these in more details.

1. Location 

Location is the most important when analyzing homes and trying to decide on a home value. There is even saying “3 most important things about the house are : location, location, location“. I have wrote about the importance of location in my blog before. The real estate market is based on property location. The most effective way to analyze the property is to keep as close to the subject property as possible. It is the best to keep the comaprables and the subject properties within the same neighborhood .

If there are not enough comps near the subject home , it’s ok to look futher and expand out. But do not foeret to watch other boundaries, like a school district, and stay within it.

2. Time frame

When looking at the comps that were recently sold, the best comparable sales are in the past three (3) months. Do not go back for more than six months, because it is older data is not reflective of the current market.

The best comparables are homes that are currently “pending.”. A pending home means that a buyer and seller made a deal. Just the final sale price is not known,because the home is not sold yet.

3. Home Features:

After finding the comparable homes in a particular location and getting comps from a recent timeframe, the most important is to look for homes with similar features as a subject home. It is important to look at the prices that homes were sold.

If comparing price per square feet, it will not consider other factors,like lake or golf views, a new designer kitchen, updated new bathrooms.

When comparing home features, it is very important to look for similarities. Let say, the subject home has all four bedrooms on the top floor, look for something similar. Its is very important number of bedrooms, number of bathrooms and totl square footage of the whole house. Also, the size of the lot is very important too. Check if the basement finnished or unfinished. It is possible to make adjustments in price for diffrences , when comparing homes.

 

What Is a Title in Real Estate?

Sheridan Lumbar - business building at 2044 Sheridan St., Hollywood, FL
“Sheridan Lumbar” business building located at 2044 Sheridan St., Hollywood, FL

The title in real estate are the legal rights of property ownership and they are protected and recognized by law. The ownership might be legal interest or equitable interest.

Those legal rights to real estate are many different ones – to own, to use, to posses, to  control, to enjoy, dispose of real estate or interest in real estate.

The main real estate rights are possession and use.

That bundle of rights can be separated even more and held by different parties, for example, some of the real estate rights are:

  • Water rights
  • Mineral rights,
  • Hunting rights,
  • Air rights .

In real estate, land and real property registration and recording gives public notice of ownership information.

Title evidence is proven through title report. This title report  is written up by title insurance company, which show the history of title as determined by the recorded public record.

What is Earnest Money When Buying a Home?

Money
Coins

The earnest money deposit is a very important part when buying a home.

When a buyer gives an earnest money to the homeowner, it  tells the property owner  that a buyer is very committed.

Seller does not want to accept an offer without earnest money deposit.

If seller accepts an offer for the home, then earnest money will go toward the down payment and closing costs.

When a homeowner accepts the offer from the buyer, bioth sides sign a contract on final price and down-payment. The contract does not force the buyer to buy the home because home inspection can reveal problems with the house.

The contract does guarantee that the homeowner takes the house off the market while the house is inspected and appraised.  The buyer is required to give an earnest money payment as a proof that offer is serious.

Earnest money is paid 1-3 days after the homeowner accepts the buyer’s offer.

Earnest money is usually paid by a check or a wire transfer into a trust or escrow account which is held by a legal company, real estate brokerage, or title company.