^^ Watch The Full Video with all 6 Steps to Pricing Your Home ^ ^
Casey Samson, Samson Properties #1 Agent’s, Pricing Model
$100M in Annual Production
85% of our listings sell within 30 days at 100.1% of sale
Rule #1: Well Priced Homes Sell at Maximum Value
Rule #2: Don’t Forget Rule #1
Time is Money When Selling your Home
Homes get the max value in the first 30 days!
Website Estimates mislead buyers & sellers
Realtor Property Resource*: $1.1M Home Snap: $1.104M
Trulia: $905,000 Zillow: $919,000
Estimates Can Vary 20% or More
40% of the Homes in Northern Virginia withdraw unsold.
There are 6 steps to Pricing
*You can skip the 6 steps by emailing me at firstname.lastname@example.org
I will price your home for you!
Step One – Establish The Proper Criteria
Proper Comparables are based on age, type of home, size and similar features. Credibility is given to same neighborhood, same street. In other words this is where we compare apples to apples.
Step Two – Compare
- Price per square feet (PPSF)
- % of assessment
Step Three – Adjust
The model includes:
- Range of Percentages based on sale price vs county assessment
- Range of Price per sq ft (PPSF)
- Produce “The Index which is a combination of the two numbers
Step Four – Confirm PPSF using growth charts.
Growth charts show 10 year pricing cycle.
Step Five – Evaluate Market Conditions.
Is it a buyers or a sellers market?
Step Six – Apply Thresholds
Buyers search for homes based on a minimum and maximum price. Example searches:
Buyers search $750,000-$800,000 so you would not list a home at $810,000. You would list at $799,000 to compete against an weaker price group.
Buyer search $500,000-$550,000 so you would not list at $555,000. You would list at $550,000
Homes are unique and a great deal of pricing is opinion not fact. You need a certain amount of real buyers to see your home in order to sell. You need to listen to the market very carefully One of three things is going to happen:
IF we are priced right, we will have good traffic, nice comments and a contract or 3 within the first week. This scenario often causes buyers to bid pricing up and gives sellers a back up contracts for leverage during inspections.
IF we are priced too high, we will either have very little traffic or a ton of traffic and no contract. Either one tells us we are “out of the market” (priced too high). The amount of traffic, comments, market conditions and price range all need to be taken into account when determining whether you drop $25,000 or $50,000.
IF we are a little low multiple people will submit contracts and drive the price over list and give us back up contracts. This actually is the preferred way because back up contracts protect sellers during the inspection period. THIS IS VERY VALUABLE.
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This article “Pricing Model” was written by Casey Samson, please do not copy the content without permission.