Terminology - Looking at Real Estate information can sometimes be overwhelming. Here is a quick guide to help you understand the three most commonly used terms you will find.
Average price - This price is found by taking the total dollar sales volume and dividing this number by the total amount of sales.
Benchmark price - The sale price predicted in a certain area for a general property this is called the benchmark price. The Housing Price Index determines the benchmark price and based on criteria that is commonly found in other properties in the same area. This could be considered a typical sale price and does not necessarily take the lower end or higher end properties into account.
Median price - All sales within a given time period in a list ranging from the lowest price to the highest price are averaged. The median price is the price that is found right in the middle. Half of the real estate sales would be lower-priced and half would be higher.
Please call me if you have any questions about these terms or any other real estate questions. It's important that you know and understand everything about a home sale or purchase before making your final decision and I am always here to help.