What does sold mean?
The term sold is used to represent properties whose ownership has been transferred to the new owners and all costs associated with the transaction have been properly paid, according to the World Property Journal. Sold properties are used to understand market trends and estimate the market values of similar properties in the same locations.
Properties sold in a particular location can be viewed at online listing services and on multiple listing services (MLS). Some information related to sold properties such as pictures may be hidden due to the privacy concerns of new owners.
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Why do sold properties matter?
Sold properties play a very important role in the future values of other properties. Real estate agents(seller’s agent and buyer’s agent), homebuyers, and sellers use sold houses to estimate the current market value of similar properties they are buying or selling. This is done in a process known as comparative market analysis.
That is sellers rely on the evaluation of similar recently sold houses when deciding the proper listing prices. At the same time, buyers rely on the same metrics when deciding how much they should offer.
Sold properties can also be used to show the trend in the real estate market. For example, you can tell if a seller’s market is coming when houses are being sold for more than they are listed for. On the other hand, if houses are being sold at lower prices and this trend continues; it could be an indication of a buyer’s market. These trends can also be used to estimate the performance of an economy in general.
