3/2/2 (spoken as “three two two”) is short for a house with 3 bedrooms, 2 bathrooms, and a 2 car garage. It’s the “typical” house, if there was one, especially for first-time homebuyers and investors. It’s enough house to be happy with size-wise and remain affordable.
My analysis was sparked by a friend’s and my own asking, “If I want to buy a house and flip it, which type of house should I seek?” I think all of my real estate friends would appropriately say “3/2/2”. Some other questions may include: In general, when trying to sell a house, “What’s a typical number of Days on Market (DOM)?” And, “Are there any types of houses that don’t sell?”
Well, this isn’t the most scientific of all analyses, but it’s more in-depth than anything else I’ve seen that is specific to Tulsa, and I’d like to share it with you. First, here are some points of clarification:
- In the Tulsa MLS (GTAR/NORES), “garage” really means “vehicle capacity”, which could include an attached garage, detached garage, or even a carport.
- I didn’t include any houses with less than 2 bedrooms, and I didn’t consider half-baths.
- 6 bedrooms means “6 or more bedrooms.” 4 bathrooms means “4 or more full bathrooms”. 4 garage capacity means “4 or more garage capacity.”
- Data was queried and entered manually on December 5, 2010, and includes properties Closed between January 1, 2010, and November 30, 2010.
- Typically, a property that closed in one month went Pending a month or two earlier. Thus, some houses under contract (i.e. Pending) during November 2010, may not have closed yet.
- 2010 included half the year qualifying for tax credits, and the other half of the year did not. Some of the months following the tax credit’s expiration experienced significantly less closings than in years prior.
- Days On Market (DOM) is an indicator for how many days it took for a listing to go from Active to Closed. Sometimes a property is Active for 180 days and then re-listed with a new MLS number and sells in a day or week. These scenarios are not excluded. DOM refers to the MLS number that went from Active to Closed. In other words, DOM (tracks the MLS#) is not the same as Cumulative DOM (tracks the address).
- Many of the Minimums of each property type include the starting bid of auction properties and/or really distressed properties and, thus, may cause averages and summary numbers to be skewed lower.
- This and other general analyses can be helpful, but each property being considered for purchase or sale deserves its own CMA (Customized Market Analysis) due diligence. A CMA (not a Zillow Zestimate) provides information about similar, nearby properties and can factor in specific features, location, school district, age, and other factors not included in this general analysis.
- I chose to narrow the analysis only to the City of Tulsa instead of Tulsa County because investors are the ones looking to flip houses and investors typically want property in populated areas. Also, there’s less new construction to skew the overall comparability of the properties.
- If you’d like more information about real estate or have any questions, please contact me at 918-409-2543.
Here are some Top 5, Low 5, and other lists that you might find interesting…
- 3/2/2 with 901 closings
- 4/2/2 with 355 closings
- 3/1/1 with 333 closings
- 3/1/2 with 281 closings
- 2/1/1 with 277 closings
In other words, if you wanted the largest population of buyers looking at your property, sell a 3/2/2.
Least Popular: Of the 100 property types (i.e. bed/bath/garage combinations) analyzed…
- 39 had no closings.
- 17 had 1 closing.
- 8 had 2-4 closings.
- 14 had 5-19 closings.
- 12 had 20-99 closings.
- 5 had 100-199 closings.
- And with the 5 from the Most Popular list, the total is 100 property types.
Quickest to sell (lowest average DOM with at least 5 closings)
- 4/1/1 in 36 days
- 3/3/3 in 37 days
- 4/2/1 in 41 days
- 3/1/0 in 44 days
- 3/1/1 in 45 days
Any of these would be good choices because they’re all within 9 days of each other. Note that a 3/2/2 averages 52 DOM.
Slowest to sell (highest average DOM with at least 5 closings)
- 5/4/2 in 113 days
- 5/4/4 in 110 days
- 4/4/3 in 73 days
- 5/4/3 in 68 days
- 5/3/2 in 67 days
Why do 5/4/2’s and 5/4/4’s take nearly twice as long to sell as 5/4/3’s and 5/3/2’s? Sometimes data just ends up looking funny; othertimes, there are logical guesstimates.
Greatest Percentage of Average Listing Price Received (avg SP / avg LP with at least 5 closings)
- 2/2/0 with 104.28%
- 4/2/1 with 103.71%
- 4/1/2 with 101.65%
- 3/1/0 with 99.77%
- 5/3/3 with 98.64%
No matter what type of property you’re selling, expect an offer less than your list price. Typically, if the sales price (SP) is greater than the listing price (LP), it’s because the seller agreed to pay some of the buyer’s closing costs.
Lowest Percentage of Average Listing Price Received (avg SP / avg LP with at least 5 closings)
- 4/4/4 with 88.82%
- 4/2/0 with 91.03%
- 5/4/3 with 91.93%
- 4/1/0 with 92.55%
- 4/3/4 with 93.07%
No matter what type of property you’re selling, an offer more than 10% lower than your listing price should be thoroughly re-examined for validity because the lowest ones here are 6.93% to 11.18% lower than the listing price. Same goes for making an offer on a property–know that it’s not common to get more than 5-10% off the list price of the average listing.
How much does a ___ bedroom house sell for?
- 2 bedrooms average $68,528.50.
- 3 bedrooms average $110,865.09.
- 4 bedrooms average $268,419.69.
- 5 bedrooms average $714,389.50.
- No 6+ bedrooms were averaged because none of them had 5+ closings.
Back to the point of why 3/2/2’s are so popular–they’re considerably larger than most 2 bedrooms and considerably less expensive than the average 4 bedroom house.
If you’re a buyer looking to spend $150,000 (a typical Tulsa purchase), know that you can afford a 3 bedroom but you’d be stretching to find a 4 bedroom, on average.
I’d love to know what you think about this analysis and if you have ideas for any others. Add a comment below or contact me. Thanks!
I look forward to bringing you more valuable information in the future!
These are the data charts. Please contact me if you would like the actual Excel sheet.
Except for the number of properties closed, the numbers in dark red are averages of all bath/garage combinations, and the numbers in light red are the averages within each bedroom count.
There were 508 2-bedroom houses closed between January 1, 2010, and November 30, 2010. Of these 508, the average minimums among the 20 bath/garage combinations averaged a minimum of 1,608 square feet. (Note: Averages of averages may not be of much accuracy/value for making specific conclusions.)
3 bedroom houses are the most common by far, with nearly 2,000 3 bedroom homes sold in the first 11 months of 2010.
4 bedroom homes are more popular than 2 bedroom homes–791 closed vs. 508 closed, respectively.
Only 9 homes with 6 or more bedrooms closed, but the ones that sold went fairly quickly.
On average (of averages), no new listing (including re-lists) should expect to close in less than 25-45 days. At the quickest, a cash buyer could probably close in 1-2 weeks, assuming they made an offer on the property within 1-2 days of it coming on the market.
6 or more Bedrooms
I might calculate averages, but I don’t do average work. If you’re looking to buy, sell, or invest, please consider me. I am tech-savvy, facts-based, and golden rule-oriented. Give me a call.