Median Price in Real Estate
Definition: Median is a mathematical result that indicates that one half of the group is higher and one half lower. Median price of 101 sold homes would be that price which is lower than 50 of the prices and also higher than 50 of them.
Do not confuse this term with the average. They can be quite different for the same sample group. For instance, if you are doing a sold properties report and the homes are very evenly distributed, the median and average might be very similar.
However, if the homes sold were weighted more to one end or the other of the price spectrum, then the median and average could be quite different.
Statistics, Market Profiles and Their Marketing Value
My real estate practice in New Mexico seemed to get a high percentage of attorneys, judges, accountants and business owners through the website. Mine was primarily a vacation mountain home market, and they were wanting to buy ski condos and homes. When I began to see that I was getting these type of clients more than the competition, I became curious and started asking them what brought them to my website.
First, I knew they came from the site simply because it was the ONLY way I marketed. I didn't network, mix or mingle. I just kept the website and blog going. But, that still didn't answer the "why" of these type of prospects. When I began to ask, I was told often that it was because of the information and data on my site.
They were detail oriented types who like to research their decisions heavily before making them.
They also didn't as a group have a high regard for real estate people. So, they gravitated away from the "pretty" and "selling" type of sites to sites with the hard data they wanted to use to research their future purchase.
They told me also that I always responded to any email or form requests very quickly.
So, I have an average transaction price one year for homes at over $300,000 due to these high profile buyers. They arrived fully researched, and on average I only had to show them 5 homes. I can't complain a bit about the reward for the effort. So, enough bragging, what was on my site that grabbed and kept them?
Sold Market Reports & Commentary
I would monthly go into the MLS system and print out a PDF of the previous month's sold properties by area. I would also do it quarterly. These were the source for the vast majority of my leads when I offered them via email delivery instantly.
I would also provide commentary on the reports, usually in blog posts that offered the supporting report. If sales numbers were down, I would offer my opinion as to the reason. The same applied to more sales or higher average or median prices. Days on market also would require a comment now and then.
Most MLS systems will allow different reports, and I would take advantage of any that I thought would be of interest to my site visitors. I offered them via immediate email delivery with a form. I would get an email with their prospect contact information required on the form, generally only name and email.
I also created a category for MLS area profiles with blog posts for each. I would go to the area and take a 360 degree video pan of an area representative of the terrain and structures, roads, etc. I would then do a profile on that area with the video in the post. Out of the MLS, I would get a report of the sold property report for that MLS area and post the previous year's summary report in the blog post.
As you can see, I covered my market thoroughly, put a lot of information in the blog posts about each area, including sold info, and offered reports. I maintained a steady stream of quality leads from these activities, and they were great clients.