The sold price based on the midway point of all the units sold. For attributes such as square footage and lot size, the median value is used. For example, if most detached homes sold in a community have three bedrooms and three bathrooms, the features/attributes of the typical home will have that same combination of features. The common or average home is identified through various features, including above ground square footage, lot size, number of bedrooms, and number of bathrooms.īy using the sales data for each property type and location, typical features or characteristics can be identified. Total number of properties currently available for purchase.Ī typical home has features that are common within a particular community. Data from areas in which a large component of transactions occur from members of another board is not reliable for trend purposes.New home data is only included if it was listed on the MLS® System by a CREB® member.

Includes all resale transactions performed by CREB® members in any location.An equation is produced that estimates the contribution that each of a home’s features (attributes) makes toward its price.Ĭalculating the benchmark price: The values assigned to each of the features that describe a benchmark property are fed into the equation produced in Step 1 to arrive at its benchmark price.

Benchmark home prices are calculated using a two-step process:Įstimating benchmark price models: Using all sales records that correspond to the Benchmark property being modeled (i.e., apartment property in Beltline). Total dollar sum of all sold prices divided by the total number of units sold. Glossary of Terms Average days on market (DOM):Īverage number of days that a newly listed property was on the market before it sold.

Benchmark definition in real estate