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Posted by Geoff Gill on December 7, 2015
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Is Median House Price Important
When Selling Your Own Home?
The real estate industry involves a lot of terms and statistics.  One of those terms you should be familiar with when selling your own home is median house price.  Median house prices should not be confused with average house prices.  I would guarantee that many people, when researching a suburb to purchase a property, believe that the median price is average house prices.  This is the wrong interpretation.

So what does median house price mean in the case of houses sold?

Let’s take the case of a fictitious suburb, Clarity.  Let’s take a set period over three months (it could be one month, 12 months, 2 years, etc.), and during this period 151 houses were sold.

The median house price is the mid-point in this number meaning 75 houses (sold prices) above this house and 75 houses (sold prices) below this house.

The house price index in the bottom 75 houses and the top 75 houses may be small or quite large.  Many suburbs have a mixture of higher priced homes and less expensive homes and depending on which sales dominated over a set period can distort the median house price over any given period.

So when selling your own property privately, the median price in your town or suburb will most likely not reflect what your asking price should be.  Median house prices over say 5 or ten years will generally indicate market trends, consumer sentiments and market conditions.

Before you determine what is the market value of your home, to sell property privately, establish just where your home sits in the town or suburb, including block size, dwelling size, luxury features, water/mountain views, location, facilities, and what similar homes have sold for over the past three to six months.

real-estate-market-valueScan local real estate listings and visit open inspections (don’t tell the agent you are going to sell your home yourself with Total Clarity Realty) and compare your home with neighbouring properties for sale.  Watch for price fluctuations (in regional Queensland agents traditionally will drop prices of their listings around 3 weeks after listing).  Also, take into account the average days on the market in your town or suburb (Total Clarity Realty can supply this information for you) because it will give you a reasonable indication of the length of time you may be on the market for.  Don’t be dissuaded by this figure – if your house price estimate is priced about right and your home presents beautifully, then your chances of a home sale success before other properties is enhanced.

Don’t delay, list your property for sale with Total Clarity Realty’s comprehensive package today!  Call us on 1300 585 836.

IT'S AS SIMPLE AS 1, 2, 3!

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