Terradatum

Did you have to cut the price to make the sale?

terradatum — Fri, 04 Dec 2009 21:09:42 +0000

The BrokerMetrics® Pricing Analysis tool provides a unique way to compare outcomes for the two different sales pathways that comprise the real estate sales process for any given price range. Pathway #1 is where No Price Reductions were necessary for a sale; Pathway #2 is where Price Reductions were required to get the property sold. The former is indicative of properties that were priced in alignment with market conditions; the latter is indicative of properties that were priced too high for prevailing market conditions. Pricing Analysis lets you compare the “results” of these two strategies.

When the average “outcomes” of these two pathways are compared the properties that didn’t need price reductions usually sold much quicker and for more money! In addition, the average square footage of the price reduced properties is usually larger; begging the question, “When does it make sense to sell a bigger property for less money?” Thus, when sellers over price their properties relative to current market conditions they are inadvertently putting themselves in harm’s way financially!

Constant Attention: The Real Estate Professional Pricing Secret

terradatum — Wed, 02 Dec 2009 21:04:04 +0000

Real estate professionals become price experts by previewing and tracking the continual stream of new listings that enter their market service area. This, effectively, engages them in a constant property valuation process that provides them with the informational backdrop needed to understand the quality-to-price ratio (value) across the full spectrum of market prices. Each new piece of inventory begs the question of how the property’s key attributes (location, functionality, size, quality, condition) compare with, and fit into, the market as a whole. This process is constant and ongoing and is simply the nature of the business.

In addition, because most working professionals monitor the MLS Hot Sheet on a daily basis they have the ability to check their initial assessments against market “reality”, i.e. the factual sales data. This ongoing process of previewing new listings, and then tracking their sales histories, provides the user with a very privileged position from which to measure market value and how it is changing over time. Thus, a real estate professional’s pricing expertise, which allows them to set fair-market prices with a high degree of accuracy, is a function of their accumulated market “knowledge”. Knowledge they built up over time by previewing properties and then tracking what happens to them. There is simply no substitute for this acquired knowledge when it comes to pricing properties accurately!

Answering the Top 8 Client Pricing Questions

terradatum — Tue, 01 Dec 2009 21:06:32 +0000

Here are the top 8 Client questions related to pricing a listing:

From a price perspective where does my property (best) fit within the current market? Does it conform to the widest swath of the market? If not how is it different?
Are there sufficient (sold) market comparables in my price “range” to support an appraisal?
Are there any pending sales and, if so, how do they relate to my property?
Which properties currently on the market will be my toughest competition?
How has market activity changed over time? Have the number of sold transactions increased, decreased, or stayed about the same?
How has market pricing shifted over time? Has it increased, decreased, or stayed about the same?
From a strategic pricing perspective, what would be a good price point to enter the market? That is, what price implies to the market that I’m a knowledgeable seller, one who has offered their property for sale at a realistic market price?
If my property does not draw an offer and sell (go under contract) within 30 days what is the market telling me? Because it’s not “theory” anymore (the market has spoken) what have I learned; and how do I course correct from a pricing perspective?

Buyers and Sellers empowered with AgentMetrics Pricing Analysis information can make more informed pricing decisions; ones that lead to “beneficial” sales outcomes, i.e. the ability to maximize their net sheet relative to any set of market conditions.

Pricing Analysis: Coaching Sellers to think in Range, not Set Point

terradatum — Mon, 30 Nov 2009 21:03:42 +0000

One of the key concepts involved in using the BrokerMetrics® Pricing Analysis tool effectively is to understand the difference between the initial list price and the price range where the property is most likely to sell. When analyzing a property to determine its value most real estate professionals think in terms of a “price range” rather than a “single” value. Experience has taught them that no two buyers approach a property, or its value, in quite the same way. Each buyer will assign it a slightly different value depending on their own needs, wants, and market perceptions. These different viewpoints will generate a range of values rather than converge on any single one.

What the real estate professional further understands is that this range is defined by buyers, not sellers (a fact sellers often ignore to their peril). Single price points are only necessary for setting an initial list price; the price that best expresses the subject’s value proposition (quality-to-price ratio) to the current crop of market educated buyers. This price is strategic in nature and is set to draw offers that will help maximize the sellers’ net proceeds; while at the same time mitigating their risk of having to enter the price reduction process. Because experienced real estate professionals realize that once a property enters the price reduction process the ability to maximize its sales potential is greatly diminished.

Smart clients make for faster sales…

terradatum — Tue, 10 Nov 2009 20:45:11 +0000

Smart clients make for faster sales. Educate your clients on the nuances of pricing correctly with real, recent, local, data. Terradatum’s BrokerMetrics application shows how price, demand, and property attributes interact for any given market segment- from lot size to square footage.

Supply Demand Example from BrokerMetrics(r)

Leveraging data to become an “Market Expert”

terradatum — Tue, 10 Nov 2009 18:00:00 +0000

Here is a good example of how an agent leverages market data to become a “Market Expert”!

BrokerMetrics® New Features Are a Hit with Clients

terradatum — Mon, 02 Nov 2009 13:00:32 +0000

Terradatum issued a new release of its BrokerMetrics® program and users are excited about the new features. First thing this morning the feedback started coming in, for example, Bob from Connecticut wrote: “Just went in and looked at and played around with the new features in Market Dynamics. They are terrific. Thanks so much from this very pleased client.”

The new features added last night include:

Three year views in our market trend tools;
Ability to select month comparisons within each view in market trends;
The addition of three entirely new market trend charts – Sale Price to Original Price (two views) and Price Per Square Foot

You can see an example of the three year view below and find out more by visiting http://www.Terradatum.com.

Example of 3-yr Chart (Median Price Sold)

In Real Estate, Supply and Demand is Local

terradatum — Fri, 30 Oct 2009 22:24:40 +0000

Know at a glance if supply & demand in your local market are trending up, down or steady- and how fast things are changing. Using AgentMetrics, look at trend lines on the supply (for sale) and demand (sold) over time- letting you get and communicate an instant sense of what’s happening with pricing behavior and market forces (the collective behavior of all market participants).

Take the high ground with your clients

terradatum — Tue, 27 Oct 2009 18:53:07 +0000

Take the high ground with your clients! Let them see the whole market, where no properties are hidden from view or unavailable for discussion. AgentMetrics® and BrokerMetrics® allow you to share this type of information with your clients while reinforcing your professionalism, honesty, and depth of market knowledge. It will help build your client’s trust in you.

Show your clients the breadth of the market

Sellers Beware: Overpricing Data

terradatum — Mon, 26 Oct 2009 14:24:18 +0000

Overpricing your home leads to lower price realization and longer days on market. Overpriced properties don’t sell for as much and don’t sell as quickly as correctly priced properties. Use real market data to prove to your clients the hidden costs inherent in overpricing.