So, it’s time and you’re ready for the big listing presentation. You pull from your trusty presentation arsenal, a well crafted market analysis, a presentation booklet or handout, maybe some articles on recent industry news or whatever combination of materials make you the listing ninja. You spend a great deal of time discussing how you’re marketing plan is the most amazing thing to grace our planet, and assure them that if they list with YOU their home will certainly be visible from outer space. Now, you’ve gained their confidence and have a good shot. You spend a great deal of time listening to why this house is better than all of the other homes you’ve included in that well crafted market analysis. Certainly OUR home will sell for much more than those – and much quicker, too. Certainly you’ve heard the news that our market is making a comeback, haven’t you?
Most of us have spent a great deal of time trying to get sellers to comprehend and accept the rapid price decline in many of our markets. Sellers who went on market overpriced were likely to expire, or after several re-lists finally lowered their price to sell. In many cases, had they listened to you in the beginning, the home would have sold for a better price in the end. So many sellers lost money chasing the market. Now, many of our areas are beginning to see movement. This is GREAT!!! Right? Well, of course it’s great. However, we’re presented with another challenge. You hear on the news that home sales are beginning to increase. While this news is truly delightful, we must continue to proceed with vigilance. There are still plenty of choices out there, and pricing mistakes can be costly.
How do you plan to celebrate the good news while maintaining a realistic pricing approach? It’s simple. Just use the facts. Use the facts in a well presented, clear and concise fashion that make your point undeniable.
REDataCenter will bring you weekly chart commentary to help you better understand how our charts and tools can help you stay ahead of the market and stop chasing moving targets. Keeping your clients updated on changing market trends will help you both make better informed decisions when the offers come in, for your accurately priced properties!
This week’s chart: Comparative Inventory by List Price
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I’ve highlighted a suburb of Metro Atlanta currently beginning to show impressive pending sales and sold activity. The average months of inventory (AMOI) for this area has decreased over the last year. Great news?? Well, this depends on what price point your seller is positioned. You’ll see in this chart that AMOI for properties under $100k is quite impressive at 3.5 months or less. The $100k – $250k could be better, but 12 months or less isn’t too horrible considering where we were a year ago. However, let’s just say that with over 55 months of inventory, the $650k to $700k price block isn’t a very good place to be.
Use this information to help your sellers know where they need to be, or more importantly, where they don’t want to be. See you next week with a different chart and perspective on the market!
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