Formula - Spread | Propertylogy

Formula – Spread

By on June 4, 2018

(SP – AP) / AP = S

SP – Sale price

AP – Asking price

S – Spread

The spread is expressed as a percentage.

Unless it’s a hot seller’s market, the sale price is almost always lower than the asking price.

This means that the resulting number from this equation will almost always be a negative figure.

If the average spread of a market is positive and high, it means that the market has gone bonkers.

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