The What: Percent of Original List Price Received is a ratio between a starting price and a selling price.
The How: The original list price is set at the listing level. First, each sold listing’s sale price is divided by its most recent list price; or, in the case of Percent of Original List Price, by its original list price. Then all of the listing-level ratios are averaged to find the entire market’s average percent of (original) list price.
The Oops: The most common error is to divide the entire market’s average sale price by the average list price and calculate the ratio using aggregated data. But dividing one average by another in this way is mathematically invalid.
Using the fake data set below, Percent of (Original) List Price Received is calculated using the bold figures and not the italic ones.
List Price Sold Price Percent of List Price Received
$250,567 $245,000 97.8%
$255,569 $251,000 98.2%
$375,466 $370,500 98.7%
$334,432 $330,000 98.3%
$396,881 $390,000 98.3%
$459,331 $439,500 95.7%
$521,780 $517,500 99.2%
$584,230 $575,000 98.4%
$646,679 $643,000 99.4%
$709,129 $706,333 99.6%
Average: $452,222 $430,555 False: 98.5% True: 98.4%
The Beauty: In a world with so much beauty, we still find exception with the metric that we affectionately call PCTLP. This metric allows you to assess the pricing power of sellers in any given market, the levels of supply and demand, and the desirability of a market.
Do you have the market statistics you need at your fingertips?
If you’re a real estate professional and belong to an MLS that subscribes* to MarketStats by ShowingTime, you already have access to useful reports and charts for every situation.
For MLS and association staff who need to quickly generate reports and charts that summarize local market activity, MarketStats by ShowingTime can help. Contact us for more information.
*MLSs and associations subscribe to MarketStats by ShowingTime to provide ready-made statistical tools for members. MarketStats is currently sold only to MLSs or associations.