What we have done is The Paris911 Team has explored the real estate market as it pertains to list versus sales price.
What do those trends mean to "joe consumer" and what does it mean to the Savvy real estate investor?
The current real estate market, in the Santa Clarita Valley has changed quite dramatically as of late. We have been watching as we have seen a 25% reduction between the listing versus sales prices.
However, as good as that may seem to someone that is looking to buy real estate -it's not what it sounds like.
Listing Price - the price that the seller was hoping to get for their property.
Sales Price - the price that the seller eventually gets for their property.
Now - after the definitions have been drafted, you may be wondering how it works when it comes to our Santa Clarita Valley?
What is the cause of this "difference" in pricing versus sales prices?
There could be two potential reasons why this is occurring.
First it could be the fault of the real estate agent. Giving bad information to the sellers hoping to secure the listing over the other agent the sellers interviewed.
Second it could be the fault of the seller, wanting to get more for their home than the current fair market value and not taking the advice of their realtor.
Looking at two possible reasons for this "sales price versus list price" scenario, I'd say the first reason, the fault of the realtor, is the bigger sin.
Agents should know better than to over promise and under deliver.
They should always be there for their real estate sellers and buyers to give the best advice possible. They should always be working from a factual real estate platform and always promise their sellers from an origin of facts and not conjecture.