Understanding Price is imperative both form the Seller’s and Buyer’s perspectives.
For the seller, pricing too high can be disastrous. Buyers will focus their attention on lower-priced listings first. So can pricing so low that buyers wonder what is wrong with the property.
Much the current Silicon Valley Market is deliberately priced low to spark interest, often resulting in multiple offers driving the price up as evidenced by the ratios over 100%. However, the high-end properties, the ones that sit on the market a long time in the graph above, those often sell for less than list, sometimes when the sellers give up on waiting for their desired price.
This histogram breaks down average sales price to list price ration by price range. Here we see that most price ranges sell at or above list, with demand driving prices in the $1,100,000 to $1,200,000 price up nearly 6% above list.