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Formula – Spread
By Contributor on June 4, 2018
(SP – AP) / AP = S
SP – Sale price
You need to know:
What lenders hope you never learn about mortgages
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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