If you just talking about the value of real estate in a city, whichbest describes the housing value and why?A. The median price is $500,000B. The modal price is $500,000C. The average price is $500,000
C. The median and the average price dont really relate. You will hear people speak of the average home price in an area. The median price is just the middle number of price ranges. EX: 300,000 , 350,000 , 400,000. The median price is 350,000. The average price is the price of similar homes in the area.
None of the above. It all depends on the average prices in that neighborhood AND, more specifically, what that particular property's comparable sales [comps] are. Comps should be not older than 6 months. BUT with the sub-prime mortgage crisis, it also depends on how well-qualified the Buyer is to buy AND how motivated the Seller is to sell. In real estate there are 2 old sayings: The Seller names the price. The Buyer names the terms. The Seller names the terms. The Buyer names the price. Somewhere in the middle there is compromise and an agreement is reached. ANOTHER: A property is ONLY worth what someone is willing to sell it for AND what someone else is willing to pay for it - not one penny more. AND, when financing is involved, how much the property will appraise for AND how much that lender is willing to lend the Buyer - based on the Buyer's qualifications and ability to repay the loan. Thanks for asking your Q! I enjoyed answering it! VTY, Ron Berue Yes, that is my real last name!
i am not sure why they use median and average both suggest the middle price of a home sold in that area. Geographic area differ where ever you are and you have heard the term in real estate and you will always here this term Location Location Location. On the other subject Ron the other guy that answered is correct the buyer and seller determine price through compromise. This is generally directed by market forces or what I like to call supply vs demand. B)Model price would not be the answer you are looking for if this is homework, Model home is a brand new home and only takes one segment of the market to analyze for prices in that city. A) and C) suggest similar meanings and confuse me somewhat . They are a combined analysis of sales of all homes in that city and then its the dollar between the high and the low that get you the median price. Averaging prices isn't a good way to see value in hoods but more a city as a whole but still doesn't give much useful data except the total amount of real estate in a community .These are pretty bad way to establish or learn about homes as Ron said The comp or comparable is the truth of the analysis of the true value of property. You want recent sales and comparable's when finding true value of real estate. A comparable is a home thats most similar and close to the home that you are selling you looking at. It would be a recent sale in the closest hood with the most similar features. If this is home work then the question sucks and you need a better book or teacher cause with questions like this its no wonder the teacher is a teacher and not a real estate investor. Well I hope this helped and I like to reinforce people that answer here because it lends credit to there experience and quality of answer. Real Estate is a great career if you choose it. I am a 17 year real estate investor and love this field of endeavor. Good luck
i think of it may be the conventional cost because of fact it takes account of extremes in vaule while the median and modal do no longer. for this reason it provides a greater precise mirrored image of domicile fees in the section.
