6May2010
Posted by Ryan Coffey under: Selling.
Here is part two of my series which features a fictional account of a couple who have trouble selling their home. It is based on an amalgamation of some of the most common errors made by people hoping to sell their home which ultimately are detrimental to their efforts. Please read from the beginning of part one in order to understand the context of the following passage.
Ryan Coffey
The Interviews
The first Realtor was the most honest Realtor. He suggested a price that in his opinion was low enough to allow it to compete with other similar listings but high enough to get them as much money as possible. Combining his market knwoeldge with his experience he suggested an asking price of $299,000.. He explained that their listing will appear on his personal website, company website and realtor.ca website as well as be in a newspaper ad and be the subject of a couple of promotional events for the property, like and open house for example. In his explanation he stressed the need to price it correctly because assuming that he is doing his job correctly and that they are keeping the home tidy and available to view, that what ultimately sells a place is having it listed at a price that is competitive with a commission that is competitive. He explained that overpricing is the more likely to cost them money than slightly underpricing. (Due to the risk of gainaing a stigma vs. the likelihood of multiple offers.)
He promised to give them a variety of tips and tricks on things they could do to the home to make it more presentable in order to attract the best possible price. He properly explained the risks and benefits of each course of action that came up in their conversation. Although he was very polite and open, at no point did he suck up to the Pilkingtons because he felt that to be a little sleazy and thus beneath his professional standards. His philosophy was simply to give the best service he could.
The second Realtor was the flashy big name Realtor. Roger and Shirley knew his name well from all the bus bench ads and for sale signs with his name. He had been doing business in Nanaimo for over 20 years and was a very busy individual. He always brought this up because to the uninitiated it implied that he knew some sort of special information that no one else did. As soon as he entered the house, they felt as if they had a true real estate master in the house. He had an aura of confidence and was obviously very impressed with their home (lots of oohs and ahs over the garden and the ensuite bathroom and the floor in the kitchen) despite having ‘seen it all‘ when it comes to real estate.
In addition to talking a lot about how busy/successful he was he also said some things that implied that he could sell the home at a higher price than the first Realtor who was really a nobody with no connections anyway. He knew that such nonsense is best left implied rather than explicitly stated and certainly not put it any kind of writing. As if to prove his magnificence he asked the price that the other Realtor had suggested and then said “$299,000? Really? I think you could probably get something like $319,000 for such a nice place. I mean, with such a nice garden and the nice fixtures you have in the ensuite… I have lots of buyers who are looking for something just like this. If we list this, I’ll have some of them looking at the place in a couple of days.”
What never gets brought up here is that this Realtor is hoping to “double end” the property. This means that he wants to represent both the seller and the buyer thus making twice the money. Because of this goal, this particular Realtor often takes his time entering the photos and description of the property into the MLS system so that although he is technically following the rules, the result is that only his own buyers find out about the property right away rather than sharing the info with the other 400 or so Realtors in town who combined have way more buyers than he could ever have. He also didn’t mention his philosophy of “you can’t reduce a listing you don’t have” which is why he “outbid” the other Realtor on the asking price. He knows he is much more likely to get the listing that way and then when it (probably) doesn’t sell he can talk them into lowering their price. In the meantime he gets his name and number on yet another sign. Good advertising. Market prices are rising anyway so it will eventually catch up to their price anyhow. This Realtor also “sold the sizzle not the steak“ and promised to inlcude a few bells and whistles in the listing that would purportedly make more buyers wants to buy it.
What never gets brought up here is that this Realtor is hoping to “double end” the property. This means that he wants to represent both the seller and the buyer thus making twice the money. Two birds with one stone if you will. Because of this goal, he takes his time entering the photos and description of the property into the MLS system so that although he is technically following the rules, the result is that only his own buyers and people who visit his personal website get the full info about the property right away rather than sharing the info with the other 400 or so Realtors in town who combined have way more buyers than he ever could. He also didn’t mention his philosophy of “you can’t reduce a listing you don’t have” which is why he “outbid” the other Realtor on the price. He knows he is much more likely to get the listing that way and then when it (probably) doesn’t sell he can talk them into lowering their price. But the market prices are rising anyway so it will eventually catch up to their price anyhow.
The third and final Realtor was the one from a discount brokerage. He charged less than half for his services than the previous two Realtors and emphasized the (true) fact that should Roger and Shirley list with him that the listing will appear on realtor.ca website which is where many buyers look first. As this would save them nearly $7000, this was really appealing to them.
29April2010
Posted by Ryan Coffey under: Selling.
This is a story. It is not a story about any particular real life Realtor or any particular real life client. It is however, a common tale that I as a Realtor see regularly in my line of work. It may be a Seller that I encounter personally, but it is most often exemplified in a listing that I have been driving by for months and saying to myself “Wow… still on the market eh?“ The details of the story are an amalgamation of many such examples I have seen. This story is not as dramatic as many real life ones are because I wanted to focus more on the decisions made than the drama in the personal lives of the people involved. Suffice to say that in the real world… emotions are flying around a lot while all of this is going on.
Once upon a time in a land far down the street was a house that the owners wanted to sell. The owners of this home were named Roger and Shirley Pilkington. The Pilkingtons had lived in their cozy home for about ten years. They had loved it, maintained it well. Their pride in their home showed. They certainly had the nicest garden on the street, and in their opinion all the renos and upgrades they had done over the years made it the nicest house too. However, for reasons not important to our story, they had decided it was time to sell the home and move on. Suffice to say that like nearly every other seller they needed to and intended to get as much money for the property as possible.
Roger and Shirley had been talking to their neighbours about selling their home for a year or so. They had been mulling over various ideas of how to do it. They were considering selling it as a “for sale by owner” but they decided to talk to some Realtors first. So they called three different Realtors from various companies and asked them to come by and tell them how much they could sell the Pilkington’s house for and what the plan was for selling it.
Watch this space for part 2.
Ryan Coffey
20April2010
Posted by Ryan Coffey under: Nanaimo Profile and Events.
So it wasn’t just a rumour. (See my post from last week.) It’s just that they’re still in the stages of determining feasibility. Here is an article about it from the local paper, the Nanaimo Daily News. My hope is that it’s a go as I’m ever excited to see downtown grow because I’d like to see more of a “city centre” in Nanaimo.
FYI, I am now offering Chinese language (Mandarin) service thanks to help from Vicki Wei, my assistant from Beijing. We should have a Chinese language website up any day now at www.jianada-fangdichan.com So, if you or anyone you know is interested in getting Chinese language service from someone who is native to the area, but who also understands what it’s like to live in a totally different culture, I’m your guy. I’m originally from Vancouver Island about an hour from Nanaimo so I have always had some sort of relationship with it, and I’ve spent four years in Japan. While I’m at it about languages I’ll mention that I grew up speaking from at school from the age of five and although my Japanese isn’t perfect I can offer service in that language too as that’s what my wife and many friends (potential assistants) speak most easily.
Ryan Coffey
City hopes offshore investments save hotel
Potential Chinese investors also looking at fast ferry service and land for condominium towers
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| Derek Spalding |
| Daily News |
Saturday, April 17, 2010
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| CREDIT: Krista Bryce/Daily News |
| Empty lot where the new hotel was suppose to be built in connection with the Vancouver Island Conference Centre. |
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Nanaimo’s international inroads with China have kept alive the city’s hopes for constructing a downtown hotel, viewed as a crucial component to revitalizing the area and making the Port of Nanaimo Centre financially viable.
Two Chinese investors and another Canadian developer are several months in to developing their business plans that will determine whether or not the project will be profitable. All three groups want to build condominium towers near Maffeo-Sutton Park. Despite Mayor John Ruttan’s reluctance to offer the land as an incentive to get a hotel completed, he may have to change his mind if a definitive plan comes forward within the next year.
Members from the newly formed Nanaimo economic development commission met for the first time Thursday afternoon and the hotel dominated discussions. The hotel is considered a key component to downtown development that will likely inspire another fast-ferry service and create higher residential density and increase business in the entire city, Ruttan explained. With strong ties already established with China, a country that particularly wants to invest in Canada, a future hotel is still very much viable.
Staff in the economic development office have worked extensively to build the relationships in Asia. Investors there may be more interested now that construction costs have dropped significantly in recent years.
“Nanaimo is poised to become an investment community,” said Marilyn Hutchinson, economic development manager. “Once we have one successful project, there will be greater interest from international investors.”
The city joined the provincial government two years ago through a program aimed at encouraging mid-market regional centres to pursue international investment. Staff members received $50,000 and significant support to build inroads overseas, according to Nanaimo’s legislative services director, Ian Howat.
The city used the additional resources to send two envoys to China. Staff members and politicians have also hosted many visitors. With massive financial growth in the country, the potential for investment in Nanaimo is significant, Howat explained.
And one project will just be the start. Of the 10 Chinese investors inquiring about a downtown hotel in the past two years, many of them also inquired about a fast ferry. Others are interested in building condos near Maffeo-Sutton park, an incentive once part of the now failed agreement with Vancouver based Millennium Development.
“Getting that first foot in the door is huge,” Howat said. “Once these investors see a successful project, it will lead to more.”
Ruttan would rather not include land for condo towers in a hotel deal. He even mentioned this during his election campaign in 2008, but if the offer is serious enough, he may be forced to change his mind.
“If we had a really solid hotel offer, one that was substantial and specific and included everything we want, I would reluctantly look at that site again,” the mayor explained.
Ruttan sees the hotel as the impetus to more investment in the downtown.
Even with two condo towers, the downtown would have increased density, the conference centre could reach its full potential and the right investor could create or at least inspire a new fast ferry service. Revitalization would be well underway.
The NED committee consists of some of the city’s most influential leaders and business people. Likely Ruttan’s most significant initiative since elected, his team will meet every second Thursday of each month.
15April2010
Posted by Ryan Coffey under: Financial.
I keep hearing the same misconceptions over and over from people who think that recent regulatory changes to how people can qualify for mortgages are going to make it super hard for them to buy. At least a half dozen (smart) people have told me that they’re having trouble saving the 20% down payment they need for their home and that they’re annoyed that they have to stick to a five year fixed rate. Also, to a lesser extent they’re talking about not being able to refinance much of their homes.
Slow down. Relax. None of this is true.
It’s a grossly exaggerated and twisted impression of what is actually going on.
If these things were true it would be a huge deal for real estate markets and prices would probably plummet. That’s not what’s happening because the changes aren’t nearly as severe as all that. I have written about this twice on my blog before. Once when the changes were first announced and once I was able to wrap my head around it better and I found an article written by someone with more knowledge on lending practices than I. I highly recommend that you read that second one. It will put you at ease once you realize that there’s no real problem for most people.
If I were you, I’d keep an eye on what the mortgage rates are doing and get pre approved as soon as you can. The Mortgage Broker can almost always hold those rates for 90-120 days and as rates are starting to creep up, you might as well do it now if you’re planning on buying soon.
Now read that earlier article. In fact, while you’re at it you might as well have a look at my year end “best of” lists like this one and this one. They’ll basically make you understand that although real estate is very complicated, the essential strategies are simple. For navigating the details… that’s why you have Realtors like me.
Ryan Coffey
13April2010
Posted by Ryan Coffey under: Nanaimo Profile and Events.
The Port of Nanaimo’s plan to put a $22-million cruise ship terminal on the waterfront will move ahead.
An agreement was reached between the Snuneymuxw First Nation, the port authority and the federal government that will allow the project to proceed while details of the environmental review are dealt with separately.
The project has been held up since Snuneymuxw Chief Doug White made it clear the band isn’t satisfied the Crown consulted adequately with the Snuneymuxw on the project. Concerns were raised that the project would trample Douglas Treaty rights dating back 155 years, which include protection of the fisheries.
The Nanaimo Port Authority sounded the alarm that the project was in jeopardy when the April 1 deadline passed and the impasse remained. Officials from federal departments of infrastructure and transportation flew in on Wednesday to begin face-to-face talks to resolve the matter. On Friday, the Snuneymuxw announced an agreement had been reached.
Port officials could not be immediately reached for comment, but White said he is pleased with the outcome.
“We are now supportive of the cruise ship facility because the port authority has agreed our environmental concerns need to be addressed,” White said. “The relationship the Snuneymuxw First Nation will have on an ongoing basis with the cruise ship facility is subject to negotiations.”
The agreement calls for an environmental review process that will happen independently in Nanaimo, which will allow the construction to proceed separately.
“The project can proceed,” White said. “The tendering, all that. We’ve come to an arrangement that the project can proceed.” The project was looking more and more to be doomed before Friday.
The $8.5 million in federal infrastructure funding comes with a requirement that the project must be complete by March 31. The plan is to build a dock large enough to accommodate 300-metre cruise ships but a six-month fisheries window will limit the time when construction can happen in the sensitive estuary.
Port officials warned tendering needed to get underway by
April 1, but when that deadline came and went it was moved to April 7. Without a solution reached on Wednesday, talks continued and the deadline was extended to Friday.
“It did take a bit of time,” White said. “One of the elements of this is to ensure the environmental concerns are properly addressed.” Fisheries habitat for salmon, crab and shellfish are a major part of those concerns. The federal environmental review process resulted in the creation of a detailed report on the estuary, but the report wasn’t in the federal officials’ briefcases when they arrived Wednesday.
“It should have been here today,” White said Friday. “It should arrive Monday, I guess.”
The Snuneymuxw will conduct their own environmental review during the next few months to ensure the project “proceeds in a sustainable manner,” including respecting Douglas Treaty rights, and that “potential negative impacts are minimized,” according to a press release from the band. The port authority is expected to get the federal permits it needs soon, but the Snuneymuxw will issue a report in the next month “outlining measures that need to be taken to mitigate potential impacts of the project,” the band said. The process then calls for both sides to reach an agreement on those measures, “with the help of a mediator if needed.” The partnership is expected to be complete within two months.
6April2010
Posted by Ryan Coffey under: Nanaimo Profile and Events; Uncategorized.
I really hope that this is only a temporary setback. I have been very excited by what the prospects of a cruise ship berth will mean for the continued revitalization on Nanaimo’s downtown. Here is the article from a local newspaper.
Ryan Coffey
Nanaimo scraps cruise-ship terminal plans
NANAIMO DAILY NEWSAPRIL 3, 2010
The Nanaimo Port Authority has suspended a $22-million floating cruise-ship terminal project because it has not received the federal environmental assessment permits required to proceed with tender and construction.
“It’s with a profound sense of disappointment that we’ve been forced to make the decision to suspend this project that’s been six years in the planning,” board chairman Bob Bennie said in a press release this week.
The cruise-ship terminal project was announced in August 2009 when the port authority was successful in securing $8.5 million of federal stimulus funding. The agreement required that the money be spent and the terminal completed by March 31, 2011.
Bennie said that tenders have to be called “without further delay” in order for construction of the terminal to be completed within the 2011 federal deadline.
The environmental assessment requires approvals from three federal ministries (environment, fisheries and transportation) in consultation with Snuneymuxw First Nation.
For the past six years the port authority has been working with the Snuneymuxw and, in 2007, together signed a protocol agreement to guide collaborative relationships for projects such as the cruise ship terminal and future projects.
Since 2006, the port authority has committed $5 million of its own funds for the project, secured $5 million from the provincial government, and obtained funding commitments of $3.5 million from the Island Coastal Economic Trust and $8.5 million from the federal government.
The original plan for a fixed dock at the Assembly Wharf was changed to a floating dock because it meant a substantial reduction in the dredging requirements.
The design incorporated a 300-metre-long floating dock to accommodate the largest cruise ships to ply the west coast and would have accommodated 30 to 40 large cruise-ship visits a season, compared to eight in 2009.
29March2010
Posted by Ryan Coffey under: Financial.
I just found a message in my inbox, which was sent to me from a Mortgage Broker with some information that will be of interest to all of you interested in interest rates.
This Mortgage Broker (who will remain unnamed as I want to get word out quickly and don’t have time to get their permission) is claiming that they were privy to some information saying that most lenders will be raising their interest rates by the end of tonight. If you happen to be reading this before the end of today, drop in to your Mortgage Broker and take last minute advantage of these record low interest rates we are seeing the end of. Many lenders will let you hold them to a quoted rate for 90-120 days.
So if you’ve been putting this off… now’s you’re last chance to get in under the wire.
I knew this day was coming, but the last information I had heard was that it was coming in a couple of months. I doubt that rates will increase dramatically in a short time, but even a small difference can be enough to prevent you from affording the one you really wanted. After all, as I’ve stated in the past, rates will often play at least as large of a part in making things affordable or unaffordable as what the market is doing does.
24March2010
Posted by Ryan Coffey under: Financial; Nanaimo Real Estate Market.
When I saw the new mortgage rules that were announced recently, my immediate reaction was “Oh, this is smart. The government has successfully helped bring back the real estate market since the beginning of last year by making interest rates really low, and now they’re taking steps to keep it from heating up too much before the interest rates rise again and start to restrict people’s buying power. They’re going to gradually, and gently make it harder for some people to borrow in certain common but slightly higher risk situations before they allow the interest rates to rise again. Ultimately, they’re being REALLY careful so as to not create a bubble. Considering how low the number of foreclosures have been in Canada compared to other nations, I’m not sure if this is necessary but better safe than sorry I guess.”
But apparently this isn’t the reaction everyone is having. Some people are under the impression that it’s going to be really hard to buy now. Not true. Don’t make firm decisions about what you can and can’t afford without talking to a mortgage broker. My life is saturated with real estate information and even I don’t know for sure what I can afford. I have a good idea, but as things are changing every day in the mortgage world and I’m a Realtor, not a Mortgage Broker, I can’t say for sure. So neither should you.
I’d like to say “hats off” to the people running this aspect of the economy. After watching our country fare so well compared to others in the recent real estate debacle and have our banking system become the envy of the world, I have developed a certain respect for their ways.
Below is some more reading on the topic if you are interested. It came from Canada Realty News.
Ryan Coffey
How Will the New Mortgage Rules Affect the Canadian Market?
Finance Minister Jim Flaherty recently unveiled new mortgage rules aimed at stopping housing speculators and ensuring homebuyers can adequately handle their debts when interest rates inevitably rise. Mr. Flaherty stressed that Canada’s real estate market is healthy, and that the new rules, which take effect April 19th, would stop “negative trends” from development.
“There’s no clear evidence of a housing bubble, but we’re taking proactive, prudent and cautious steps today to help prevent one. Our government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it,” commented Minister Flaherty.
“The underlying message is that Canadians should be prudent in the obligations they take on because we can all expect that mortgage interest rates will rise over time,” Flaherty added.
Here is a quick look at the changes which apply to government-backed insured mortgages:
1. Borrowers must now qualify based on a five-year fixed rate even if they choose a mortgage with a lower interest rate and shorter term. The government’s rationale for this change is that it will help borrowers prepare for higher rates, although it may squeeze the purchasing power of home buyers. It remains unclear whether borrowers must qualify at the five-year posted rate or the five-year discounted rate.
2. The maximum amount Canadians can withdraw in refinancing their mortgages will be reduced to 90% of the value of their homes, instead of 95%. This change will help ensure home ownership is a more effective way to save. The impact of this change is expected to be minimal as relatively few homeowners withdraw equity from their homes to this extent.
3. A minimum down payment of 20% will be needed for government-backed mortgage insurance on non-owner-occupied properties “purchased for speculation,” which realistically means rental properties. While this measure is intended to hamper the speculative buying of properties by reducing the leverage of buyers, it will also impact those buying real estate for general investment purposes.
How will these changes affect the Canadian real estate market?
For most consumers, the changes are unlikely to make it harder to get a mortgage but it could reduce the size of the mortgage an individual consumer can negotiate with a lender. And they might have to look at buying slightly less expensive properties.
People buying real estate for investment purposes including those looking for rental properties may find it harder to get into the market as they have to shell out more money form their own savings.
Undoubtedly there will be a rush of mortgage applications to beat the April 19th deadline. However it is expected some lenders will start to implement these guidelines before April 19th.
Some volatility is expected in the housing market in the short term as home buyers rush to beat the April 19th date. After that, the activity will likely fade because so many buyers moved up their purchases. This could end up softening the sharp year-over-year price increases that have been characteristic in many cities recently.
The economic implications of this rule change are unlikely to be severe, and we expect the housing market to slow its ascent without crashing down.
18March2010
Posted by Ryan Coffey under: Financial.
The following is something that showed up in my inbox yesterday from a Mortgage Brokerage located across the parking lot from me. They often have good tips to share and I thought this one was worth posting here.
Ryan Coffey
That first fresh breath of spring always sets us in motion: we can’t wait to sweep away the clutter. Sure it’s a bit of work, but it feels great when the lawn is raked, the windows and curtains are washed, and the closets are cleared. Just like the clutter that sneaks up in your closets, you can also accumulate debt clutter: credit cards, car payments, tax bills and other obligations. If you’re concerned about your debt clutter, then this may be the year to spring clean your debt.
With mortgage rates still at historic lows, this spring you have an incredible window of opportunity. By using your home equity, you can consolidate your high-interest debt into a new or existing mortgage, giving you interest savings and a new lower monthly payment. In almost every case, you’re better off holding your debt in a mortgage than in any other lending vehicle. Why? Because we continue to benefit from mortgage rates that are still among the lowest in decades.
Worried about penalties to break your current mortgage? We can assess your situation; there’s a good chance that the savings each month will far outweigh any penalties. Here’s an example.
Consider the following situation:
- your current mortgage is $155,000 at 5.5% with a monthly payment of $946
- you also have a car loan of $20,000 and credit cards maxed out at $20,000, both of which cost you $920 a month
- your total monthly payment is $1,866
Your mortgage planner presents the following
scenario:
- you get a new mortgage for $202,000 to cover the original $155,000, the $40,000 in credit cards and car loan, and $7,000 to break your mortgage
- your new mortgage is at 4.10% and you now have a much lower overall monthly payment of $1,074
With this new scenario, monthly payments are $792 less each month; a great improvement in cash flow! And if you put $425 of that cash flow into your mortgage payment, you reduce your amortization from 25 years to 15. We’re a fortunate generation of homeowners. We can benefit from low mortgage rates to enjoy our lives and our homes – and to manage our debt wisely. Independent mortgage planners – who have access to more than 50 different lenders, including most of the major banks – have become specialists in helping Canadians restructure debt. In addition to offering
access to a broad range of mortgage options, these experienced planners provide credit advice and debt management tips that can help save thousands of dollars.
Consider if you need a clear and simple look at what you’ve got to gain from spring cleaning your debt. We don’t know how long these great rates will last but right now, it is a historic opportunity. If too much debt has slowed your monthly cash flow to a trickle, it’s time to talk to a mortgage planner. And why not? It will be the easiest spring cleaning task on your list; your mortgage planner will do all the work!
The Greg Nowik Team
Serving Vancouver Island
250.758.5524
#3–4180 Island Hwy
Nanaimo, BC V9T 1W6
greg@gregnowik.com • www.gregnowik.com
11March2010
Posted by Ryan Coffey under: Nanaimo Real Estate Market; Uncategorized.
So I was perusing local websites a few moments ago and I came across a local blog post here and I thought I would offer some insights on average sale price statistics and how they relate to Nanaimo real estate. As I said to someone recently, I’ve pretty much written everything on this blog already that the non career professional real estate buyer/seller would ever need to know, but here goes anyway. A new way of presenting the same important info.
First off, I couldn’t agree with the poster’s comments at the end more. I so often see people drawing conclusions about the price of their home from information like this without taking time to understand the deeper working of it. I see the same sorts of conclusions being drawn from property assessments, what the neighbour’s house sold for (which of course isn’t as nice as their own) and a price based on how much they paid for the place plus how much the average sale price has gone up plus how much it cost them to do their renos.
There’s only one thing that counts when pricing your home and that’s what people are willing to pay for it. When Realtors give you an estimate on the value of your home, we give you this price based on what has sold recently that is most similar to your home combined with the experience and knowledge gained from spending pretty much every day thinking about the value of every property we see. And we see a lot.
If we’re really stuck for comparables, (rare) we might include average sale price changes as a factor. I for one, only do this if I really have no better option.
Why? Well, they only measure an average of what people are spending at a certain time. Take on year ago for example, a time when hardly anyone was buying any real estate. A lot of people were scared off by the nonsense the mainstream media was spewing, those who were buying were being more modest with their purchases than usual and we had a higher number of first time buyers than usual. Those first time buyers were smart. The only deals I was doing at the time was with people like that and I was excited for them because I believed that it was the best time to be a first time buyer in quite a few years due to the low interest rates and the slight slump in the market. All in all, the although these stats do mirror the changes in actual value of real estate, they are only a general guideline. Unfortunately, I can’t think of a better way to measure the overall changes of vlaue in a given real estate market. The Vancouver Real Estate Board is trying a new way of doing these things, but I’ve yet to be convinced of its value. Pun intended.
To sum it up, what I’m trying to say is that I think most people make too much of the average sale prices. For real estate investors and real estate professionals they’re something to keep a finger on the pulse of. For most homeowners, they can be a source of making conclusions that appear more informed than they really are. So, don’t get too detailed in your calculations.
By the way, what you should be paying at least as much attention to in my opinion is mortgage rates. Those can affect what you pay quite a bit more than market value.
Ryan Coffey