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Breakthrough Ideas for Greater Real Estate Success!

Brand New!!
agent Inner Circle Mic How to Make $327 Per HOUR Practicing Real Estate Using a Simple 3-Step Formula…
(68 minute audio)

Rated 5-Stars by agents! Listen in as marketing expert Craig Forte details how a simple 3-Step Business-Building Formula can have you earning $327 or More Per Hour practicing real estate – regardless of market conditions, your experience or geographic area. CLICK HERE to visit our Brand New Audio Series Page where you'll find Craig's landmark interview.

Try This Powerful Home Pricing Strategy (with example)

Do you ever get price resistance from sellers? Nearly everyone does these days.

In today's fluctuating market, your toughest job is convincing sellers to list at a price lower than their (inflated) expectations. If you want to land the listing and have any chance of selling it before it bleeds your working capital to zero, you're going to need a powerful strategy to prove your case.

Here, agent Brian Healy presents a terrific "3-Approaches to Value" in order to dial in on the correct price for a potential listing. Then he presents his findings in a very simple, yet convincing 1-page presentation (see his example)…

"We use a unique method for pricing a home that consists of providing statistical data for recently sold homes that are comparable to the listing at hand. Our 3 approaches to value are "price per square foot", ratio of assessed to sold approach", and "straight comparable approach."

What we do is we look back 6 months to find homes with the same amount of beds, baths and reasonably similar style built within 10 years plus or minus of the subject property. We assign a standard value of $40.00 per square foot to below grade sq/ft as is fairly typical in our area and back this value out of the sale price.

We then divide the remaining sale price by the above grade sq/ft to get the price per sq/ft for the home. Once we have all sq/ft values for the homes we add them together and take the average. We apply this value to the subject property and that is our "price per sq/ft value.

Next we find the assessed value for these same homes and divide the sale price by the assessed value to get the ratio of sold to assessed value. We apply this percentage to the subject property assessed value and that is our "ratio of assessed to sold value".

Finally, we take the most comparable home from this group and apply its price per sq/ft and ratio of assessed to sold value to the subject property to get the "Straight Comparable Value".

We add the 3 values together and this is our exclusive "Blended Market Value." We always note that this is a value based on averages of sold properties and not actives. We only compare with the homes that have got the job done!

Based on our blended market value we provide a suggested list price range. We always have a fall back in that if the home is below average we suggest the low end of the range and if it above average we use the top end. We use this effectively on our first appointment to determine if the sellers have a realistic idea of pricing.

Sellers are always impressed with our ability to provide such a unique look at value and we almost always win in competitive situations due to the fact that most agents just walk in with 3 currents, 3 solds & 3 pendings.... Boring!

I'm including our summary page (Click Here to See Summary Page) that lays-out our values for the future client. We believe this unique approach has helped us get inside the top 1% of agents in the state for 2007. In this market consumers want valuable differentiators from their agent(s) and we walk through the door with it!"

Look Who's Now the Proud Owner of a
Brand New FLIP Video Camera!!

Flip video camera winners

Why are Brian and Michele Healy (from The Healy Team) smiling these days? Because they just won a brand new FLIP video camcorder! Congratulations, Brian and Michele.

Want to get your very own FLIP camera? It's easy. Just submit your very best marketing or success strategy (or Quick-Tip or Horror Story) by Clicking Here. Then, every month we select the ideas we used in the last 2 issues and throw'em into a hat where the winner is selected randomly. The better your idea (examples help!), the more likely we'll use it, and the greater your chances of winning…just like Brian and Michele here.

How to Use Statistics and Historical Proof to Differentiate Yourself from Other Agents (see example)

Since we're on the topic of listing strategies, here's a quick and easy strategy agents Rosie and John Hanna use to prove their ability to generate maximum value for a home, and differentiate themselves from other agents…

Also, see Rosie and John's "reasons why clients should select them" with This Example. See if you can use any of the same "reasons" in your own pre-listing package.

"To build confidence early in our presentation, we have a color page of all of our year prior listings with their sales price to list price ratio. We have the same for properties purchased by our buyers.

It quickly confirms we know the market trends. It is factual and user friendly. They recognize some of the properties and so get comfortable with the information and with us as their Realtor. New Realtors may easily use their office stats."

Quick Tip…

“Every month I try to pop by my top 15 clients with a small gift - something they will remember me by. A generic one I use is a potholder with a note attached “Don't get burned in this market. Call a REALTOR® you can trust!” At the bottom my business card is attached.

Submitted by Debra Ewing (Thanks Debra! You're now in the running for a New FLIP Video Camcorder for submitting your idea at this link)

Horror Story: Lender Tries to Kill Short Sale with Incompetence – and Nearly Succeeds!

I had a client that went through a tough year financially and was several months behind on his mortgage payment. After doing a CMA we found that he was probably going to have to sell for less than what was owed. He did not have the resources to cover the difference so we immediately put together a short sale package and tried to submit it to the lender.

Unfortunately, the lender was unwilling to look at it until we were in escrow. We priced it to sell and got a good offer. We submitted the package and left a message for them to call us. After repeated attempts to contact the loan workout specialist with no success we managed to get an assistant on the phone that told us it would be a week before we heard something.

The week went by and we called, only to find out the person we were working with had quit and the person that was taking over would need at least an additional week to get to our request. A week later after numerous attempts had failed we contacted the department head explaining to her that the buyer was starting to look for other homes because of the lengthy delays.

The very next day I got a hold of the workout specialist who told me she couldn't talk to me because she believed the signature on the authorization letter was forged and didn't want to risk liability by disclosing confidential information. Even though I explained to her I had a copy of the client's package, which included tax returns, bank statements and a loan application in front of me.

So I had to wait until my client got off work to have the letter re-executed. Even though we were close to getting the short sale approved, the lender chose to file a notice of default, which was going to further reduce the lenders net. We finally got the short sale approved but to my horror the lender was not going to allow a seller credit for buyers closing costs.

I was relentless in my attempts to speak to the specialist and hours later finally succeeded. I had to explain to her that this was a first time buyer that was getting 100 % financing and didn't have $8,300 for closing costs and any credit less than that would reduce the buyers cash reserves which would certainly impact the buyers ability to qualify.

It just seemed that every time we made headway the lender would create another obstacle we had to overcome. Although the buyer threatened to cancel because of the delays we did manage to get this transaction closed, with a bad case of heartburn I might add.

Issue #1129