Priced to Sell - CMAs

Notes from a panel discussion on pricing to sell in a buyer's market - Keller Williams Realty Family Reunion February, 2009

Some months the actives tell the story. Sometimes it is solds, or pendings, or expires.

Second-guess and double check all the time. Predict which one in the neighborhood will be the next to sell.

CMA - listen to the market, adjust quickly, watch the data. What are three houses that are current competition? What are 2-3 pendings, solds in last 30 days? What about days on market. Price to sell in 30 days - because it won't bring as much in 31 days.

Show the triple digit days on market - show the carrying costs.

Look at months of inventory. Profile the kind of buyer who will buy. Show what else that buyer will look at.

Break data into market niches - $50K price points - school districts.

Practice your CMA values before you present to your seller. Guess price point - $25K increments.

Never reduce price less than 5%.

Sellers respond to photos.

Excel spread sheet - what they paid, recent solds, % less, data re features, flaws.

Short sales and foreclosures - solds, actives - how did it show. Call buyer's agent and ask. You can sell at a higher price IF it is in substantially better condition.

Google Earth.

Pricing - what are the actives? Price below unless the seller's situation on comps is whacky. You have to show it is a declining market. Time is everything. Actives are the competition today. Highly competitive.

Reduce or release days every 30-45 days. If not sold within first two weekends, reduce price or release seller.

If you present data/analysis absorbtion rate with price recommendation, seller won't object. Competition - buyer urgency.

The price is based on what I can do for seller with my marketing plan. If seller tries to sell on his own for 30 days, he'll be costing himself a good chunk in a declining market. Wait no more than 2-3 weeks to reduce price if you're not getting showings - unless you want your seller to hurt himself.

Price it to create urgency.

Standard contract period is six months.