Скачать или смотреть How to sell your house - Part 1: Price is more than just a number from a CMA or AVM

How to sell your house - Part 1: Price (more than just a number). For more on price and value, check out the 6 Factors That Do Not Impact the Value of Real Estate: http://www.firehillgroup.com/videos/6...

Pricing your home to sell and doing it effectively is one the most important tasks you have when selling your home. There is no magic formula but you better have a system or you might as well pick a number out of a hat and consult a Magic 8 Ball.

This is Part 1 in a 3 part series titled, “Sell your Home Faster.” In this video, we will take on the 500 lb gorilla….Price. Everyone has an opinion on what they think a home will sell for. Average agents like to claim that only an expert like themselves and/or members of a certain industry trade group can price a home properly.

Every day new automated valuation models (AVMs) are making setting the price more and more automated. Agent generated valuation models are most often called a Comparative Market Analysis (CMA). Everyone uses an AVM or CMA in some form already. So everyone should come out with the same results right? Wrong!

There is no special sauce and average agents sometimes get it wrong! The expertise that average agents claim is little more than going with the number generated by their CMA software. Or, they make arbitrary adjustments to that number just so they can prove expertise over the computer. Worse yet, bad agents will cook the books in order to make the number they want appear (as if by design).

Before we get into the details of how to set the price properly, let’s make sure we understand some basic open market fundamentals. Who sets the price of your home? You, the sellers. Who sets the market value of your home? The ones writing the checks, the buyers.

Gather data: So how do you determine the proper price for your home? First, is establishing what information you are going to use and where you are getting it.
1. The MLS and the data from similarly sold homes over the past year (or more if necessary).
2. Compare the subject property to others currently on the market or under contract.
3. Use all of the major portals and their automated valuation models.
4. Ask around. No one has all the answers. Anyone who says they do is lying. Sometimes a new set of eyes can offer insights and advice that really make a difference.
5. Get data from the county assessors office. Assessments don’t impact the actual price (see out video on 6 Factor that do not affect value) but we need to ask some questions.
6. Gut check. Does everything look right? Do we have all the information we need? What have we missed?

Analyze the data. All of this is going to give you a set of numbers we can use to develop our initial Course Of Action (COA). We will have a range of COAs from but the numbers don’t mean much without analyzing the data. Each source used has to be evaluated for accuracy and relevance. Computer models are only as good as the data put into them. We need to make sure our initial COAs are realistic and that the numbers being generated are accurate. Is the data relevant? Condition and competition are critical components. If the comparable properties from a year ago were in better condition and/or with less competition than today, the price the market will bear will be affected.

Make a recommendation. Finally, with the Firehill Group we offer separate and distinct COAs, recommend the best COA, and provide justification for our recommendation. We offer a range of options for you to consider but each one has a set of pros and cons associated with it in much great detail than this example.

This is a lot of work and takes dedication and attention to detail. But you are paying for maximum efforts with exceptional results, why settle for average agents with Magic 8 Balls?

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The Firehill Group is a new and fast moving Loudoun County, Virginia real estate team designed & created to give you what the typical real estate agent either doesn't know or doesn't want you to see (unless you sign a contract).

Forest Selby
Founder/Owner of the Firehill Group
A Keller Williams Realty team
50 Catoctin Circle NE, Suite 101
Leesburg, VA 20176
Office (540) 822-0873
Email: [email protected]
http://www.firehillgroup.com
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