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Why do real estate agents need to find the median of houses?

So yeah why do real estate agents need to find the median price of the houses for sale on a street? Thank You for helping me

Public Comments

1. So they have some hard evidence of what homes are worth on that street. They use the info to make up a price for a house when someone is selling. They also use the info for buyers. We have just recently bought a house and we move in in June. Our real estate agent used records from previous sales on the street in order to get us a better price. She compared the features, square footage, etc. and figured out that the people we bought from were originally asking for too much money.
2. The median price of a home tells what the "average" selling price is for a given geographic area. 50% of the homes sold is higher and 50% is lower than the median price. There is not a whole lot of value other than being able to quickly evalutate one street or neighborhood against another. For instance, one street or neighborhood may have a median home prices that is significantly lower than others which indicates that the homes on that street is undervalued or run down.