Getting Price Reductions...Using Stats....Programs to use..Altos or?

By
Real Estate Broker/Owner with UtahDave.com Neighborhood Experts

Getting price reductions!  What stats to use?  How do you lead a client to the right decision?

 One of the most important attributes of a leader is being able to predict.  Numbers tell a story.  When you can look at numbers and give a story, people understand on their own what they need to do without you telling them.  Thats what leaders do..they influence others..not command others.  Managing is commanding.  Leading is influencing.

Everyone is always asking for a Crystal Ball!  Leaders can share insight on what is happening. Heres my Crystal Ball.

This is what I prefer all my clients to see right of the bat.  I set it up so that my website automatically does it.  All I have to enter is the zip code and the price range of the home.  The stats are automatically pulled up so I can email to clients or present to them.  I looked into doing Altos or other progams, however we are a non disclosure state. And because of that, their statistics arent always accurate.  I also like using absorption rates which I havent seen other programs use.  So I built my own.

You can click on it here for to view online as well.

This is an example of an area with the price range.

I prep the sellers first that a normal market has 4-6 months of inventory on the market.

A buyers market has 6 or more months of inventory.

A sellers market has less than 4 months of inventory.  I show them the stats and ask, "What type of market is it?"     They say buyers.   I ask, What happens to home prices in that state?  They say "home prices come down."   I ask them, do you want to play catch up and keep lowering your price as it comes down or do you want to beat the market?  They say they want to beat the market.  Than I get the lower price.  As a result you can see how my listings have been killing the other agents competition here.  My homes sell faster and for more money.

 

 

The numbers are colorful and big so that the people who like generals can see it quick. The people who like details can read through all the details.

 

I include a chart of numbers so that they can see where I get the stats from.  Really, the numbers above come from the stats below.  This is good to so that you can see if the attrition or absorption rate is going up or down.  That way you can predict the market.

 

 

HERE, on the backside is where I enter my statistics. I manually gather data so I can give to my clients. I enter the sold stats for the month of December on January 15th.  I enter the actives for January and the pending for January on January 15th.    I always do the same day so it gives me some sort of stable data. I enter for each zip code and the price ranges below.

This helps tremendously!  I can predict what is going to happen by watching the price ranges and not just the median price range in an area going up or down. For example, last year when we saw actives on the market increasing, pending and solds decreasing, we knew the values were going to go down so we priced homes below what they were worth.

 

Key ingredient is being able to predict the market. By using these numbers you can predict, provide people with more value, and sell more homes!

What do you use to predict the market? Are there other programs out there that have been good for you?

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Rainmaker
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Walter Grewe III
Long and Foster Realtors - Roanoke, VA
Realtor, SFR, A-REO, Roanoke Homes and Real Estate

Thanks for the information, this is a great tool to add to listing presentations.

Jan 30, 2009 01:42 PM #1
Rainmaker
188,757
League City, TX - Worrell Team, REALTORS, GRI, CNE
Bayou Properties Realty - League City, TX

This looks like a great way of explaning the market to the sellers.  We need to keep the presentation objective and not sympathize with their passion and love for their pride and joy.  Look at it from the perspective of the buyer.  It's actually really helpful that so many agents go in with an overpricing strategy. 

However, we want to beat the market without giving away the home.  So this needs to be coupled with excellent pictures, descriptions, and showing conditions. And never refuse an appointment.  I'm astounded at the sellers that say they want to sell their homes, but don't show it with their actions.

Jan 31, 2009 09:47 AM #2
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Rainmaker
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Utah Dave

Homes for Sale - Utah
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