Webinar Summit May 24, 2011 1
10 Minute Accurate CMA System Think Outside the Box Different way of Pricing This is just My Way of Pricing Issue: We did not Learn how to Price Real Estate in School 60% of MLS Listings Expire the First Time Around Your Opinion May be in Your Current Method Appraisal Method of Pricing Looks at Three Comps Leaving Data Out 2
Spelling of Name & Spouse Two Phone Numbers Floor Plan Verify Bedrooms Finished Lower Level Loan Balance Why Moving Notes 3
The Market Analysis Getting the Listing Priced Think Outside the Box Step 1: Pull History of Property on MLS & Tax Record Step 2: All Sales Activity in Neighborhood Step 3: All Sales Activity in MLS area for Similar Property Step 4: Current Competition High, Average, Low Method When Pulling these Reports, We are Looking for Buying Patterns This Method will give You a High, Low & Average Range Remember to Go Back Far Enough to get Enough Data to get an Accurate Average We will use Our Expertise and Experience to Determine if Subject is: Average Above Average Below Average 4
Step 1: Pull the History Get Tax Record Pull up entire History of Property Past Sales List Price and Sale Prices Print the History Review Photos Print MAP (backup to your GPS) Step 2: Neighborhood Activity Pull data for that Subdivision over past 6 months or 12 months DO NOT use Bedrooms, Floor Plan, Baths, etc Active, Contingent, all Pending/Backup, Solds Use 6 months back, however, will need more than 1-3 sales to be accurate Print Side by Side Comparison (or something with pictures) Print Stat High/Low Report or Calculate if your MLS Doesn t Be Sure to Print Your Search Criteria Notes 5
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Step 3: Area Activity Similar Property Use the MLS Area Main Criteria to Use: Floor Plan, Bedrooms, Age Range Note: You may also use Garage, Finished or Not Finished Basement Go back 6 Months (wider area so may not need to go back as far) Print Side By Side or Pictures Print Stat High/Low Report Print Search Criteria Notes 7
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Step 4: Competition Think Like Buyers Think Pull MLS Area (or surrounding area if buyers search that way) School District in Overlapping MLS areas Search Criteria Bedrooms Age Range Print Stat High/Low Report Print Search Criteria Used Notes 9
Competition Getting the Listing Priced 10
Interpreting the Market Getting the Listing Priced Neighborhood Holds Most Weight You Can Print a More Detailed Search with Same Floor Plan, Age and Bedrooms. If you get Enough Data This Could Tell You what it will Sell For Area Information Remember You don t need all the Details. This will Average Out when You Use Stat High/Low Report Current Competition Does Not take Into Consideration Floor Plan, however Idea to Stay in Middle of List (for a flat market) Conclusion 1. What Would You List this Property for? 2. Conclude the Market Review with a Net Sheet 3. Ask The Seller What They Were Thinking 4. If High, show them where that would put them on the Active list 5. Talk about Supply & Demand, If there are 10 homes on the market and you are #10 on that list, you will make #5 look like a great deal 6. You won t hear. Drop my Price? You said it would sell for XXX! FREE Resources www.kornteam.com/nar Remember the Korn Team for all your Kansas City & Lincoln, NE Referrals 11