Price | Pictures | Property Information
Price
“ Not only must you possess the skills necessary to price it , show it , and talk about it , but also to help the consumer understand the justification for said price ”
is all about your ability to be an expert on our local real estate market . In explaining my recommended approach to the most basic ways you can be better than you were yesterday , or how you can set yourself apart from competitors , I want you to realize that these ideas are just that . The beauty of our industry is that , at every turn , it is subjective . You can truly be an artist .
So let us dive in . For those Realtors ® who have experience in practicing Real Estate , you undoubtedly know of the MLS listings we love to hate . We view the pictures and make funny faces , we read the Property Information section and are practically forced to re-read it , and the list price ( although subjective in so many ways ) will usually receive criticism . These items are all-too-often mistreated and leaves us wondering the reasoning behind such injustice . My approach is based on these issues . There is a plethora of data that is provided by the public record and community association management - this information is static in nature . The opportunity is not here ; rather the art lies in three sections : Can you price it ? Can you show it ? Can you talk about it ?
Price | Pictures | Property Information
This information is syndicated to dozens of websites and these three aspects are most crucial . Not only must you possess the skills necessary to price it , show it , and talk about it , but also to help the consumer understand the justification for said price , whether or not the property can be experienced visually in the most advantageous way , and whether or not you are effective and explanatory so they understand the language you are speaking .
Price
Price is the single most important aspect of working in this business . Even when the other two P ’ s go completely wrong , the price can still be right . However , price is the most common problem when properties do not sell . Whether a homeowner is under water on their mortgage by a certain amount or they have found themselves under some fallacy about how real property is valuated , there are challenges you will face because technology and consumers ’ access to information has changed dramatically .
It is important to understand consumer Internet behavior with respect to Real Estate . First , Google is king . Over 95 % of consumers using a mobile device uses Google to perform Internet searches . I have consulted with countless individuals who never even use the Internet browser on their mobile device – they use the Google app ( they do not even know they are only using a search engine ). When consumers visit Google to begin their search for Real Estate information , their search terms , or “ keywords ,” will be broad and unfocused . Every search they perform will show them websites like Zillow . com , Realtor . com , Homes . com , and websites from some of the larger franchised Brokerages . Due to the mountain of data that these sites hold and the volume of visitors spending a significant amount of time there , these websites will be the resource for most consumers searching for Real Estate . Most of us have a strong bias against these websites but considering they ’ re unbeatable , apply the old adage – “ if you cant beat ‘ em , join ‘ em .” Know everything about how the website works ; know where they get their data ; know what an algorithm and an Automated Valuation Model ( AVM ) or “ Zestimate ” is ; and finally , know why the human component to the Real Estate transaction will always be a necessity – insert value proposition here .
Back to price . Simply put , the list price is a collaboration between analysis of true market value ( examining comparable properties utilizing - most often - a sales comparison analysis ) and of properties in direct competition with the subject property ( properties currently “ For Sale ”). Other considerations worth noting are market statistics and whether or not they ’ ll negatively affect the outcome of what your customer may perceive to be a quick process :
Absorption Rate : the rate at which inventory has been absorbed – calculated by measuring the number of consumed over the number of months measured .
Months of Inventory : based on the Absorption Rate , Months Of Inventory ( MOI ) is the statistical measurement of a market ’ s current inventory as it relates to previous average sales ( measured with either the previous six months OR one year ).
Original Price / Current Price / Sold Price : in an examination of comparable properties that have sold within recent history , looking at the increase or decrease
“ Not only must you possess the skills necessary to price it , show it , and talk about it , but also to help the consumer understand the justification for said price ”
RPCRA . ORG | SEPT / OCT 2016 9