Written by Tammie White, Principal Broker/Owner of Franklin Homes Realty LLC
Do you understand the difference between average sales price and median sales price?
Most consumers prefer Franklin Homes Realty LLC use average sales price; it's more commonly used. For example, if there are 11 homes for sale in Franklin Green, we would add up the sales price for those 11 homes and then divide that total by 11 to get the average sales price.
Let's take that same 11 homes. When determining the median sales price, you would arrange the prices from lowest price to highest price in ascending order. The median sales price would be the home that was right in the middle. There would be 5 homes priced lower and 5 homes priced higher. The home in the middle would be the median sales price.
In some Franklin TN neighborhoods where the homes are all similarly priced, the average and median sales price may be very close. However, in a neighborhood like Westhaven that has a variety of housing options, there may be a big difference between average sales price and median sales price.
When referring to a large number of homes with a disparity in price, Franklin Homes Realty LLC suggests it's better to use median sales price instead of average sales price. A perfect example is our most recent Franklin TN Home Sales for January 2014 report. The lowest priced Franklin home sold for $165,000. The highest priced home sold for $4,800,000. That's a big disparity. The average sales price for a home in Franklin for January 2014 was $543,240. The median sales price for that same period was $413,000; much lower than the average.
When producing neighborhood home sales reports where the homes are similarly priced, it may make more sense to use average sales price over median. You will see that we provide both numbers for those who think median sales price is a better indicator.
Franklin TN home prices: Avereage vs. Median--now you know the difference.
If you are looking to sell your Franklin TN home, contact Franklin Homes Realty LLC at (615) 495-0752.
About Tammie White, Franklin TN REALTOR®
Tammie White is a REALTOR® and Principal Broker/Owner of Franklin Homes Realty LLC in Franklin TN. Tammie works with relocation buyers looking to purchase a home in Franklin and the surrounding Williamson County area. She understands the way buyers search for homes making her an invaluable asset to Franklin home sellers. Tammie's website, www.FranklinHomesRealty.com, has become the premiere search tool for buyers relocating to Franklin TN. She has been writing a real estate blog since 2009 and quoted in various publications including the LA Times, Skype.com, The Tennessean and Williamson Source.