Determining the Value of Your Homepdf.toolkitcma.com/demopdfs/3982/Pricing_Presentation.pdf · Determining the Value of Your Home AComparativeMarketAnalysis(CMA)isessential...

Determining the Value of Your HomeA Comparative Market Analysis (CMA) is essentialto determine the value of residential property.Location and characteristics of the property are thekey elements in determining value. Therefore, thebasis for valuation is similar properties in your area.The market analysis takes into account the amountreceived from recent sales of comparable propertiesand the quantity and quality of comparableproperties currently on the market. The desired endresult is to find a price that will attract a willing andable buyer in a reasonable time.

Once the value of your home has been determined, you can decide on an offering price that will achieveyour goals. Generally, the price should not exceed the value by more than 5% or potential buyers maynot even make offers. Naturally, if you want to sell quickly your asking price should be very near thevalue.

The following are a few things to keep in mind about pricing:

� Realistic pricing will achieve maximum price in a reasonable time.

� Your cost or profit desire is irrelevant; the market determines the price.

� The cost of improvements are almost always more than the added value.

� Houses that remain on the market for a long time do not get shown.

� A house that is priced right from the beginning achieves the highest proceeds.

The Importance of Intelligent Pricing

Figure 1 - Percentage of Buyers by Asking Price

Figure 2 - Activity versus Timing

Figure 3 - The Effect of Overpricing

Determining the best asking price for a home can be oneof the most challenging aspects of selling a home. It isalso one of the most important. If your home is listed at aprice that is above market value, you will miss out onprospective buyers who would otherwise be primecandidates to purchase your home. If you list at a pricethat is below market value, you will ultimately sell for aprice that is not the optimum value for your home. AsFigure 1 illustrates, more buyers purchase theirproperties at market value than above market value. Thepercentage increases as the price falls even further belowmarket value. Therefore, by pricing your property atmarket value, you expose it to a much greater percentageof prospective buyers. This increases your chances for asale while ensuring a final sale price that properlyreflects the market value of your home.

Another critical factor to keep in mind when pricing yourhome is timing. A property attracts the most attention,excitement and interest from the real estate communityand potential buyers when it is first listed on the market(see Figure 2). Improper pricing at the initial listingmisses out on this peak interest period and may result inyour property languishing on the market. This may leadto a below market value sale price (see Figure 3), or,even worse, no sale at all. Therefore, your home has thehighest chances for a fruitful sale when it is new on themarket and the price is reasonably established.

We can give you up-to-date information on what ishappening in the marketplace and the price, financing,terms, and condition of competing properties. These arekey factors in getting your property sold at the best price,quickly and with minimum hassle.

Key Market Factors

How long does it take to sell a property? Some properties sell in a few days, others may takeseveral months. By recognizing some key factors that influence marketing a home, you can getsignificant control over market time.

The proper balance of these factors will expedite your sale:

� LocationLocation is the single greatest factor affecting value. Aneighborhood’s desirability is basic to a property’s fair marketvalue.

� CompetitionBuyers compare your property against others in thatneighborhood. Buyers interpret value based on availableproperties on the market.

� TimingThe real estate market may reflect a “buyers” or “sellers” market. Market conditions cannot bemanipulated; an individually tailored marketing plan of action must be developed for eachproperty.

� ConditionThe property condition will affect price and speed of sale. Optimizing physical appearance andadvance preparation for marketing maximizes value.

� TermsThe more terms available, the larger the market, the quicker the sale and the higher the price.Terms structured to meet your objectives are important to successful marketing.

� PriceIf the property is not properly priced, a sale may be delayed or even prevented. Reviewing theComparative Market Analysis assists you in determining the best possible price.

Comparable PropertiesCurrently On The Market2 Symphony CirList Price: $789,000 Yr Blt: 2008 Lot Size: 1.14 Acres Area: LaurelfordFin Sqft: 5484 Style: Modern Elem Sch: Hunt ValleyBedrooms: 4 Levels: 3 Middle Sch: RidgelyBathrooms: 3/1 Const: Cedar Siding High Sch: DulaneyHeating: Heat Pump Const: Stone Amenities: Walk-In ClosetFuel: Electric Parking: 2-Car Garage Amenities: Wet BarCooling: Central Air Garage Spaces: 2 Other Rms: Family RoomWater: Well Basement: Finished Other Rms: Game RoomRemarks: Gorgeous home available for move in immediately! Inground Pool in backofhouse, Fabulous Master Bedroom, Spacious Rooms."

Currently On The Market12218 Cleghorn RoadList Price: $814,900 Yr Blt: 1986 Lot Size: 1 Acre Area: LaurelfordFin Sqft: 3862 Style: Modern Elem Sch: Pot SpringsBedrooms: 4 Levels: 3 Middle Sch: CockeysvilleBathrooms: 2/2 Const: Brick High Sch: DulaneyHeating: Heat Pump Const: Stone Amenities: Wet BarFuel: Electric Parking: Driveway Amenities: Game RoomCooling: Ceiling Fan Garage Spaces: 3 Other Rms: Study/LibraryWater: Conditioner Basement: Full Other Rms: Finished AtticRemarks: PARK-LIKE GROUNDS. MASTER BEDROOM SUITE WITH BALCONY.STAINED GLASS WINDOWS& LARGE FAMILY ROOM, WET BAR AND ATRIUMDOOR TO SIDE PORCH. LIVING ROOM WITH ATRIUM DOOR TO PATIO. LOTS OFWINDOWS. FLOORS HAVE BEEN REFINISHED. VERY CHARMING HOME WITHELITE AMENITIES."

Currently On The Market13213 Beaver Dam RdList Price: $849,900 Yr Blt: 1984 Lot Size: 1.89 Acres Area: Ivy HillFin Sqft: 4090 Style: Classic Elem Sch: Hunt ValleyBedrooms: 4 Levels: 3 Middle Sch: RidgelyBathrooms: 3/2 Const: Cedar Siding High Sch: DulaneyHeating: Forced Air Const: Wood Amenities: Wet Bar/BarFuel: Bottled Pr Parking: Driveway Amenities: Wood FloorsCooling: Central A/C Garage Spaces: 3 Other Rms: Family RoomWater: Well Basement: Unfinished Other Rms: Wine CellarRemarks: HANDCRAFTED OAK FOYER AND STAIRCASE. THE ATTENTION TOARCHITECTURAL DETAILIS OUTSTANDING. AMENITIES SUCH AS HARDWOODS,MARBLE, CERAMIC AND BRASS ADD THE FINISHING TOUCHES!"

Comparative Market Analysis2 Symphony Cir 12218 Cleghorn

Road 13213 Beaver DamRd

84 Warren Rd 20 Laurelford Ct

Status A A A A AList Price $789,000 $814,900 $849,900 $885,000 $892,000List$ SQFT Sold Price Sold$ SQFT

Sold Date DOM City Cockeysville Cockeysville Cockeysville Hunt Valley CockeysvilleNeighborhood Laurelford Laurelford Ivy Hill Hillsyde LaurelfordYear Built 2008 1986 1984 1994 1992

Fin SqFt 5484 3862 4090 4584 5800Lot Desc Backs To Trees Backs To Trees Back To Woods Backs To Trees Backs To TreesLot Size 1.14 Acr 1 Acre 1.89 Acr 1.74 Acr 9 AcresStyle Modern Modern Classic Colonial ColonialLevels 3 3 3 2 3

Bedrooms 4 4 4 5 4Bathrooms 3/1 2/2 3/2 4/1 2/1Const Cedar Siding Brick Cedar Siding Brick VinylRoofing Cedar/Shake Shingle/Asphalt Shingle/F-Glass Composite ShingleBasement Finished Full Unfinished Full Full

Basement Walkout Level Unfinished Walkout Level Unfinished FinishedHeat Heat Pump Heat Pump Forced Air Heat Pump Forced AirFuel Electric Electric Bottled Propane Electric ElectricCool Central Air Central A/C Ceiling Fan Central A/C Central A/CParking 2-Car Garage Driveway Driveway Driveway Garage

Garage Spaces 2 3 3 3 2Exter Feat Deck Balcony Patio Deck BalconyWater Well Conditi Well 60+ Gal WellSewer Septic Septic Septic Septic Septic# Fireplaces 2 1 0 1 2

Amenities Walk-In Closet Wet Bar Wet Bar/Bar 3-Car Garage Wood FloorsAmenities Wet Bar Game Room Wood Floors W/W Carpeting Flue For StoveAmenities Home Warranty Drapery Rods W/W Carpeting Shades/Blinds Walk-In ClosetOther Rms In-Law Suite Mud Room Attic-Unfinishe Family Room In-Law SuiteOther Rms Family Room Study/Library Family Room Sun Room Family Room

Comparative Market Analysis7 Deep Run Court 2 Symphony Cir 12218 Cleghorn

Road13213 Beaver DamRd

84 Warren Rd

Status A A A AList Price $789,000 $814,900 $849,900 $885,000List$ SQFT Sold Price Sold$ SQFT

Sold Date DOM City Hunt Valley Cockeysville Cockeysville Cockeysville Hunt ValleyNeighborhood Orchard Valley Laurelford Laurelford Ivy Hill HillsydeYear Built 1988 2008 1986 1984 1994

Fin SqFt 2160 5484 3862 4090 4584Lot Desc Backs To Trees Backs To Trees Backs To Trees Back To Woods Backs To TreesLot Size 1.04 1.14 Acr 1 Acre 1.89 Acr 1.74 AcrStyle Colonial Modern Modern Classic ColonialLevels 3 3 3 3 2

Bedrooms 3 4 4 4 5Bathrooms 2/1 3/1 2/2 3/2 4/1Const Cedar Siding Cedar Siding Brick Cedar Siding BrickRoofing Cedar/Shake Cedar/Shake Shingle/Asphalt Shingle/F-Glass CompositeBasement Fully Finished Finished Full Unfinished Full

Basement Walkout Level Walkout Level Unfinished Walkout Level UnfinishedHeat Heat Pump Heat Pump Heat Pump Forced Air Heat PumpFuel Electric Electric Electric Bottled Propane ElectricCool Central A/C Central Air Central A/C Ceiling Fan Central A/CParking Garage 2-Car Garage Driveway Driveway Driveway

Garage Spaces 2 2 3 3 3Exter Feat Deck Deck Balcony Patio DeckWater Well Well Conditi Well 60+ GalSewer Septic Septic Septic Septic Septic# Fireplaces 2 2 1 0 1

Amenities Auto Gar Dr Opn Walk-In Closet Wet Bar Wet Bar/Bar 3-Car GarageAmenities Built-In Bookcases Wet Bar Game Room Wood Floors W/W CarpetingAmenities Mba/Sep Shwr Home Warranty Drapery Rods W/W Carpeting Shades/BlindsOther Rms Den/Stdy/Lib In-Law Suite Mud Room Attic-Unfinishe Family RoomOther Rms Family Room Family Room Study/Library Family Room Sun Room

Comparative Market Analysis SummaryCurrently On The Market

Address Neighborhood Style Yr Blt Beds Bath Sold Price List Price2 Symphony Cir Laurelford Modern 2008 4 3/1 $789,00012218 Cleghorn Road Laurelford Modern 1986 4 2/2 $814,90013213 Beaver Dam Rd Ivy Hill Classic 1984 4 3/2 $849,90084 Warren Rd Hillsyde Colonial 1994 5 4/1 $885,00020 Laurelford Ct Laurelford Colonial 1992 4 2/1 $892,0009 Jules Brentony Shawan Colonial 1995 4 3/1 $898,900510 West Padonia Rd Springhill Farm Modern 1991 5 4/1 $899,500

Average of 7 Properties: $861,314 Min: $789,000 Max: $899,500 Median: $885,000

Under Contract

Address Neighborhood Style Yr Blt Beds Bath Sold Price List Price13707 Cuba Rd Hillsyde Cape Cod 1992 2 2/1 $839,0009 Ivy Reach Court Ivy Reach Colonial 2008 4 2/1 $842,9253 Indian Spring Court Sherwood Colonial 1995 6 4/1 $850,00011 Foxtrot Ct Laurelford/Ivy Colonial 1993 2 2/1 $899,00015 David Luther Ct Laurelford/Ivy Colonial 1990 5 3/1 $899,000

Average of 5 Properties: $865,985 Min: $839,000 Max: $899,000 Median: $850,000

Recently Sold

Address Neighborhood Style Yr Blt Beds Bath Sold Price List Price19 Chris Eliot Ct Ivy Hill Colonial 1989 3 3/1 $725,000 $849,00012 Old Padonia Rd Laurelford Modern 2008 4 3/1 $755,000 $789,0004 Chamaral Ct Ivy Hill Colonial 1991 4 3/1 $775,000 $799,00012002 Boxer Hill Rd Sherwood Colonial 1995 6 4/1 $790,000 $850,00012993 Jerome Jay Dr Laurelford/Ivy Colonial 1990 5 3/1 $830,000 $899,00024 Springhill Farm Ct Springhill Farm Cottage 2003 4 3/1 $850,000 $899,900508 Shawan Rd Hillsyde Classic 2003 5 4/2 $855,600 $885,000205 Warren Rd Laurelford/Ivy Colonial 1993 2 2/1 $885,000 $899,000

Average of 8 Properties: $808,200 Min: $725,000 Max: $885,000 Median: $810,000

Off The Market

Address Neighborhood Style Yr Blt Beds Bath Sold Price List Price10 Loveton Cir Hillsyde Classic 1994 5 4/1 $885,00064 Boxwood Lane Laurelford Colonial 1992 4 2/1 $892,000

Map of Comparable Properties

Ref # Status Address1 Subject Property 7 Deep Run Court2 Currently On The Market 2 Symphony Cir3 Currently On The Market 12218 Cleghorn Road4 Currently On The Market 13213 Beaver Dam Rd5 Currently On The Market 84 Warren Rd6 Currently On The Market 20 Laurelford Ct7 Currently On The Market 9 Jules Brentony8 Currently On The Market 510 West Padonia Rd

Map of Comparable Properties

Ref # Status Address1 Subject Property 7 Deep Run Court2 Currently On The Market 2 Symphony Cir3 Currently On The Market 12218 Cleghorn Road4 Currently On The Market 13213 Beaver Dam Rd5 Currently On The Market 84 Warren Rd6 Currently On The Market 20 Laurelford Ct7 Currently On The Market 9 Jules Brentony8 Currently On The Market 510 West Padonia Rd

Currently On The Market

2 Symphony CirList Price: $789,000

DescriptionGorgeous home available for move in immediately!Inground Pool in back of house, Fabulous MasterBedroom, Spacious Rooms."

Property DetailsCity: CockeysvilleNeighborhood: LaurelfordYear Built: 2008Fin SqFt: 5484Lot Desc: Backs To TreesLot Size: 1.14 AcresStyle: ModernLevels: 3Bedrooms: 4Bathrooms: 3/1Const: Cedar SidingRoofing: Cedar/ShakeBasement: FinishedBasement: Walkout LevelHeat: Heat PumpFuel: ElectricCool: Central AirParking: 2-Car GarageGarage Spaces: 2Exter Feat: DeckWater: Well

Currently On The Market2 Symphony CirList Price: $789,000

DescriptionGorgeous home available for move in immediately! Inground Pool in back of house, Fabulous Master Bedroom, Spacious Rooms."

Property DetailsCity: CockeysvilleNeighborhood: LaurelfordYear Built: 2008Fin SqFt: 5484Lot Desc: Backs To TreesLot Size: 1.14 AcresStyle: ModernLevels: 3Bedrooms: 4Bathrooms: 3/1Const: Cedar SidingRoofing: Cedar/ShakeBasement: FinishedBasement: Walkout LevelHeat: Heat PumpFuel: ElectricCool: Central AirParking: 2-Car GarageGarage Spaces: 2Exter Feat: DeckWater: Well

Additional Photos2 Symphony Cir

List Price: $789,000

Subject Property Profile for

7 Deep Run Court

The following features have been identified to aid in the search forproperties that are comparable to yours. This will help in determiningproper pricing for your home.

City: Hunt Valley

Year Built: 1988

Lot Desc: Backs To Trees

Style: Colonial

Bedrooms: 3

Const: Cedar Siding

Basement: Fully Finished

Heat: Heat Pump

Cool: Central A/C

Garage Spaces: 2

Water: Well

# Fireplaces: 2

Amenities: Built-In Bookcases

Other Rms: Den/Stdy/Lib

Neighborhood: Orchard Valley

Fin SqFt: 2160

Lot Size: 1.04

Levels: 3

Bathrooms: 2/1

Roofing: Cedar/Shake

Basement: Walkout Level

Fuel: Electric

Parking: Garage

Exter Feat: Deck

Sewer: Septic

Amenities: Auto Gar Dr Opn

Amenities: Mba/Sep Shwr

Other Rms: Family Room

Subject Property Profile for

7 Deep Run Court

The following features have been identified to aid in the search for properties that are comparable toyours. This will help in determining proper pricing for your home.

City: Hunt ValleyFin SqFt: 2160

Style: ColonialBathrooms: 2/1

Basement: Fully FinishedFuel: Electric

Garage Spaces: 2Sewer: Septic

Amenities: Built-In BookcasesOther Rms: Family Room

Neighborhood: Orchard ValleyLot Desc: Backs To Trees

Levels: 3Const: Cedar Siding

Basement: Walkout LevelCool: Central A/C

Exter Feat: Deck# Fireplaces: 2

Amenities: Mba/Sep Shwr

Year Built: 1988Lot Size: 1.04

Bedrooms: 3Roofing: Cedar/Shake

Heat: Heat PumpParking: Garage

Water: WellAmenities: Auto Gar Dr Opn

Other Rms: Den/Stdy/Lib

Comparative Market Analysis7 Deep Run Court 12 Old Padonia Rd 24 Springhill Farm Ct 12002 Boxer Hill Rd

Adjustments Adjustments Adjustments

Sold Price $755,000 $755,000 $850,000 $850,000 $790,000 $790,000Sold$ SQFT $140 $213 $150 List Price $789,000 $899,900 $850,000 List$ SQFT $147 $225 $161 Sold Date 11/21/04 08/12/04 09/30/04

DOM 212 89 102 City Hunt Valley Cockeysville Cockeysville Cockeysville Neighborhood Orchard Valley Laurelford Springhill Farm Sherwood Year Built 1988 2008 2003 1995 Fin SqFt 2160 5384 4000 5282

Lot Desc Backs To Trees Backs To Trees Back To Woods Backs To Trees Lot Size 1.04 1.34 Acres 2.23 Acres 10 Acres Style Colonial Modern Cottage Colonial Levels 3 3 2 3 Bedrooms 3 4 4 6

Bathrooms 2/1 3/1 3/1 4/1 Const Cedar Siding Cedar Siding Stone Vinyl Siding Roofing Cedar/Shake Cedar/Shake Shingle Shingle-Asphalt Basement Fully Finished Finished Full Full Basement Walkout Level Walkout Level Unfinished Finished

Heat Heat Pump Heat Pump Forced Air Electric Fuel Electric Electric Gas Heated Electric Cool Central A/C Central Air Central A/C Ceiling Fan Parking Garage 2-Car Garage Driveway Garage Garage Spaces 2 2 1 3

Exter Feat Deck Deck Garden & Vine T Deck Water Well Well Multi-Tank Conditioner Sewer Septic Septic Septic Septic # Fireplaces 2 2 2 3 Amenities Auto Gar Dr Opn Walk-In Closet Flue For Stove Wet Bar

Amenities Built-In Bookcases Wet Bar Greenhouse In-Ground Pool Amenities Mba/Sep Shwr Mb Shower Garage Door Opener Sauna Other Rms Den/Stdy/Lib Common Room Common Room Common Room Other Rms Family Room Game Room Greenhouse Family Room

$808,200 $755,000 $850,000 $790,000

Comparative Market AnalysisGraphed by Status

Currently On The Market

Under Contract

Recently Sold

Off The Market

Comparative Market Analysis Statistics

Graphic Analysis of Currently On The Market Properties

Summary Statistics of 7 Properties:

Average Price: $861,314High Price: $899,500Low Price: $789,000

Median Price: $885,000Average Year Built: 1992

ABSORPTION RATE ANALYSIS To Assist in Accurate Pricing of Your Property

1) INVENTORY The total number of like-kind homes for sale within your price range. 2) ABSORPTION RATE

The rate at which like-kind homes will sell within your price range in a given period of time. It can be expressed in unit sales per month.

EXAMPLE: Sales Last 6 Months Divided By 6 Mos. = Sales Per Month (In Your Price Range) (Absorption Rate)

6 12 72

YOUR MARKET:

3) MONTHS OF INVENTORY

Determines the length of time required to sell all the existing homes by dividing Current Inventory by Absorption Rate.

EXAMPLE:

Current Inventory Div. By Sales per Month = Months of Inventory

60 12 5

YOUR MARKET:

4) PRICING STRATEGY

Homes priced closest to market value within your price range will sell first. Slower (higher) absorption rates require pricing closer to the market.

SELLERS’ MARKET < - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - > BUYERS’ MARKET Months 1 --- 2 --- 3 --- 4 --- 5 --- 6 --- 7 --- 8 --- 9 --- 10

ACTIVITY VS. TIME ON MARKET

The majority of showings occur in the early period of marketing (typically the first 2 or 3 weeks)… then diminish after existing buyers have seen your property. PRICE

Don’t overprice your home during the period of its best activity… then lower the price after the buyers are gone!

1 2 3 4 5 6 7 8

WEEKS ON MARKET

“We Can Always Come Down”

(The “Bargaining Room” Myth)

The rationale of pricing your home higher than market value in order to leave “bargaining room” is an ill-advised pricing tactic. Buyers shop and compare, and recognize when homes are well-priced in the market.

$ PRICE

Lower Price Lower Price MARKET VALUE

SOLD

Overpricing can cause yourproperty to stay on themarket longer than you wantand sell for LESS thanmarket value when it finallydoes sell. Price it RIGHT…from the beginning!

www.HirschiRealtors.com 940-692-8120 3631 Maplewood, Ste. 1, Wichita Falls, Tx 76308

The Quality Team in Real Estate Service Since 1966

PRICING Buyer’s Interest vs. Seller’s Market

Pricing closer to Fair Market Value generates more showings and

better offers in a shorter time frame, even in a “Seller’s Market”.

Pricing Strategy

General Rules.Let's review some important considerations. There are certain factors that arebeyond our control and certain factors that are within our control. Those factorsoutside of our control are: the location of the property, the finished square feet andtypes of rooms and the amenities that are in place. Those factors we can controlare: the appearance of the property inside and out, how aggressively we market theproperty and the price, including terms. It is critical for us to accept those factorsthat are beyond our control and to focus on pricing and preparation.

Local Market Observations.Our market is currently steady. Properties are not moving very fast but they arenot languishing for months either. Given the current interest rate situation weshould continue to experience relatively low mortgage rates and thus the marketshould remain steady for awhile.

Suggested Price Strategy.My analysis of the comparable properties suggests a list price range of $------- to$-------. This range should achieve your primary goal which is a reasonably quicksale.

PRICING STRATEGY

Proper Pricing is Very Important in Reaching Your Goals:

! To sell your property in the shortest amount of time possible ! To sell your property with the least amount of inconvenience to you ! To net you the greatest amount of money

Overpricing Will Create the Following Problems:

! Reduces sales associate activity ! Reduces advertising response ! Loses interested buyers ! Eliminates offers ! Helps sell other competing properties ! Can create appraisal problems ! Limits financing possibilities ! Extends market time ! Eventually means less money to you

From the Competitive Market Analysis, we have determined the Range of Values for homes similar to yours to be:

Sold Price Price/Sq.Ft. Subject Sq.Ft. Range of Value Low $ /Sq.Ft. x Sq.Ft. = $

Med/Avg $ /Sq.Ft. x Sq.Ft. = $ High $ /Sq.Ft. x Sq.Ft. = $

Recommendations/Adjustments/Comments:

Seller’s Estimated Proceeds

Proposed Selling Price1st MortgageTitle InsuranceBrokerage FeeHome Warranty PolicyTermite InspectionDocument PreparationAppraisal FeeRecording Fee

Approximate Net Proceeds

$799,000$35,000

$8,000$39,950

$500$300$250$300$150

$714,550

DISCLAIMER: Items and amounts presented are estimates only.

The Purpose of Feedback

The reasons we follow up with the Agent who showed your house are: 1. To jog the Agent’s memory about the house so that we may be able to get a second showing. 2. To answer any questions or concerns that the Buyer expressed so that the house will be reconsidered. 3. To get the impression of the Buyers or Agents that might help us to better market your house. Note: Don’t expect Agents to give a full critique of the house. If they showed 12-15 houses, they honestly may not remember it in detail. Also, if an Agent doesn’t call us back, it means the Buyers are not interested.

Interpreting Feedback

When An Agent Says: The Agent Means:

“The Buyer thought the house was > The Buyer found larger homes too small.” for the same price.

“They liked the house, but bought > They found other houses that another one.” were better values.

“They liked the house, but bought > Buyers will pay 10 – 15% more a new home.” for a new house.

“They didn’t like the carpet.” > Seller should replace carpet because of age or color.

“They thought the yard was too > They found other homes with small, the street too busy…” larger yards, quieter streets.

“They didn’t like the floor plan.” > They didn’t like the floor plan.

Price Objections are Always Clothed in Different Terms

SELLERS’ GOAL: To Be the Nicest House in the Price Range

Understanding The Real Estate Market

• If our house is not being shown, it means the agents think

our price is too high for that neighborhood.

Recommendation: A significant price adjustment

• If our house is being shown, but we are not getting any offers, it means the Buyers are finding nicer homes for the money.

Recommendation: A moderate price adjustment

• If our house is “in the running” but the Buyers buy something else, or if the Buyers view the house a second time but buy something else, it means that we are close.

Recommendation: A minor price adjustment

According to the National Association of REALTORS,

if our house is priced correctly, we should get one offer for every 10 showings.

In a normal market, we should get

1-2 showings per week.