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Working with Sellers Real Living Academy Seller CMA & Pricing.

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Presentation on theme: "Working with Sellers Real Living Academy Seller CMA & Pricing."— Presentation transcript:

1 Working with Sellers Real Living Academy Seller CMA & Pricing

2 Overview of Pricing Understand the value of the property Know your market – Preview Competition Be knowledgeable about local trends Know what affects the value of a home Counsel the Sellers Have Minimum Standards & A Walk Away Price Price it Right!

3 Understanding the Value of Property Complete a Comparative Market Analysis (CMA) Square Footage Bedrooms – Baths Amenities Lot Size Year Built Location Physical Condition Competition Recent Sales

4 Know Your Market Be up to date on Market Trends Know the Absorption Rate Know the List to Sell Ratio Be able to Counsel Clients to the Trends Go out and compare property to property take notes of upgrades or items that need improvement Know all the competition including new home tracks Buyers Market vs. Sellers Market Inventory upInventory down Prices downPrices Up

5 Local Trends Real Estate is a local business what is happening Nationally can be very different than by State By State can be very different than by City City can be very different than by Neighborhood Neighborhood can be very different by Home Model Narrow down the knowledge to the specific area and price range and size to the subject property

6 Trends Use Graphs – Altos Reports Broker Metrics Explain the Graphs Use Newspaper Articles to Support Your Position Positive or Negative

7 Median Price Trend past 12 months

8 Median Price Month by Month List to Sale Price Ratio

9 Median Price Month by Month Absorption Rate = 5.84 months inventory 701 ÷ 120 = 5.84 New Properties Play a Significant Role as Well

10 Amenities = Value Extra Bedroom Review other sales in the area to determine value Extra Square Footage Can not use a $ per square foot if not like for like Upgrades Quicker sale may not be $ value Pool May have no value to a buyer – ½ cost Lot Size If major difference in size can have huge affect on value If major difference in usability can have huge affect on value Year Built Go by ERA commonalities i.e. Low ceilings 80s – Vaulted ceilings 90s – High Ceilings 2,000s – wood roofs tile roofs

11 Counsel The Sellers Practice in Groups based on the Market Trend Reports I just handed out

12 Have Minimum Standards Motivation - Sell within 60-90 days Sellers are Willing to Price the Home at a Price that will cause it to sell Sellers are Willing to Prepare the Home to Salable Condition – make all necessary repairs Sellers are Willing to Show the Property Easily Willing to Have a Sign and Lockbox Sellers will be Flexible on Terms of the Offer Willing to Respond Quickly to all offers

13 Price it Right Pricing the home right represents 80 % of the possibility of getting the home sold – all aspects of marketing the property is only a 20% chance of selling Price the Property within 2% to 5% of your suggested price or walk away from the listing The First Price Matters Make it Right Explain to the sellers why you need to walk away Leave the door open for them to come back if their home does not sell with another realtor

14 Thanks for being here

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