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How to: A Real Estate Agent Makes A Current Market Analysis | Utah | September 2019

Transcript Below

Hello, everybody!

I am Alixander, real estate agent for the SLC Agency. And today I’m filming from home for Labor Day for today’s edition.

We’ve got a real special treat. We are going to be analyzing a home for the purpose of listing that home, and getting top dollar for this house. Now with that said, a special thank-you has to go out to my friend Sampson for letting me make this video for him. He was my very first client, the very first home that we ever purchased; and now we’re going to go ahead and sell it.

Very very excited about that.

Preliminary Stuff

But before we go ahead and start launching into how the how of all of this I’d like to take a brief second real quick, and this is our Facebook page guys. Go like it. That would be awesome. We love every single person who likes our stuff. This last video, the second to last video we did, which is “What are Comps? What are CMAs?” This is kind of a precursor to this video. So please subscribe to our Channel, hit the notification bell. Give us a comment. Tell us you like us, go to Facebook… do all that fun stuff.

Okay, really appreciate that. So now that’s out of the way let’s get into it.

My First Client

Okay, so I’m going to go ahead while waiting for utahrealestate.com is loading up and tell you that this home is not in Salt Lake City, but I’m not unfamiliar with this home. This is my friend’s house, and it is the very first house that I got to sell to my friend Sampson. I’ll never forget it. He was so nice. He knew I knew not a darn thing about buying and selling real estate. He knew I was fresh out of my classes, and he knew that I was his guy. We met in college, we’re good friends, and I just I can’t thank you enough, Sampson.

So I’m going to go ahead and launch into your video real quick.

Where Realtors Get Comps

So here’s the Utahrealestate.com website. Only Realtors can see the back end of it, and let’s go ahead and do this real fast because that’s essentially what we hire me for is to know what’s going on really fast.

Start of the CMA

So we’re going to launch over to his house real fast.

I know I keep saying that over and over…

Look Around the House, Actives First

We’re going to look a mile around his home to see what’s going on in the market.

We got quite a few homes that are available in the market right now ranging from as low as 159 to as high as 475. So that’s a big deal. We’ve got homes all over.

So let’s go ahead and go to the next part of this.

So once we understand what is active in the market, what’s really important is understanding what sold recently. And scaling it back to what’s sold that’s comparable, or like, the subject home.

Look at Solds Next

Okay, so we’re going to go ahead and take a look at solds.

And we’ll particularly look at solds that have happened in the last three months. It’s kind of like the last quarter or so, and there’s been about 33 sales.

So let’s go ahead and look at that on a map real fast. Map report… And then we go down here… pull price.

And I’m seeing them as low as 149. No, it’s low as 42. Hmmmm.

And this one right here kind of sticks out as a sore thumb 309,800.

So huge range there and that’s kind of why it’s important to kind of gauge where the sales are.

At 33… that’s almost one per day.

That’s fantastic.

Look at the subject property data

So now what we’re going to do is we’re actually going to get to Sampson’s house.

Well, it’s not active… but it’s gonna be! We’ll see…

So let’s go ahead and search. And we’ll pull the last 90 days off there…

Pull the house up. View. And here it is. Purchased in 2015.

So what I’m going to do is I’m going to go ahead and pull this MLS number. Now, it was listed at 129,900, is built in 1947. It has 1,660 square feet, was 25 days on the market. It’s got four bedrooms.

Awesome. We know some really important information about it.

Starting Up The CMA Machine

So we’re going to take the MLS number here. We’re going to populate it into CMA machine.

Now, real quick, let me explain the current market analysis automation tool to you. Utahrealestate.com’s CMA tool is kind of like a… how to put it… it’s an art form. It’s not an exact science, and we can get way more specific and we can get way more general.

This is just to give us an idea, all right? And that’s the big thing here, is having an idea of what’s going on and what we could potentially market this property for, and at a believable price.

Sure, you could list your home for a billion, billion dollars, but… Who’s to say that it’ll actually be sold for a billion billion dollars?

I don’t know. I don’t have a crystal ball.

Calibrating Comp Aggregation

So let’s go ahead and launch into this.

We pulled the MLS Number, we put the MLS number in the populate form button.

We can see that it brought up some generalizations between a certain year, between the certain size, between the certain number of bedrooms, between certain size of garage…

(Bye-bye Elaina, bye-bye. Yeah, Elaina is going to the gym so which is awesome.)

We’ve got between zero and four bathrooms, between zero and two carports.

So what I’m looking for specifically is… I want to know solds like this house. In the last 90 days… and there are two…

Now, I really feel like it’s a bit better to pull a little bit more information. So we’re going to go ahead and pull a hundred and eighty days. two… hmm…

I think it’d would be in our best interest to pull up the last year then.

All right, let’s go ahead and look at our results.

And what I like to do is I like to look at the results on a map. And the reason being is I want to see approximately where this is now.

Side Note

I’m familiar with Logan as a born bred and bearded Utahn. You got to know Logan. It’s a beautiful place to seeing a lot of growth. I also went to Utah State University, so…

Go Aggies!

Alixander

Okay.

Pull out the comps that don’t fit…

And with that said, I know that with this area, this home over here… by the zoo and the fairgrounds… it’s not even in the same part of town.

Now an appraiser might pull that one in, but for my current market analysis, I just don’t see it as applicable.

Review what remains

So then what we do is we go ahead and put price tags on these take a look at them.

Okay, two hundred, nineteen-nine. Two-twelve. And Two-fourteen. This is what sold in the last year.

That’s super interesting.

So then what we do is we take these homes and we pull a CMA for them.

It asks us if we want to populate the data from our subject property.

We do, it’s my buddy’s house, and look there!

It is kicks out an adjusted total, a sold average total.

Look at that! $211,805

Sampson? Do you see that?

That’s freaking awesome, bro!

Closer look at the comps

All right. So we’re going to go ahead and take a look to see how similar these properties are.

The First Property

The first one it brings up is probably the most comparable property.

Let’s see. It’s got four beds full bath 3/4 bath. It’s a 855 upstairs and 855 downstairs, 95% finished basement. It’s a little bit bigger. It’s about 50 square feet bigger… its price per square foot…. So a little bit more. It’s gross living area was more on this house. And it was built in the same year with a one-car garage, and it’s on a quarter acre.

So for all intents and purposes, this house over here, on Fifth North and 267 West, is very much like my buddy’s house in terms of its data. It was on the market for a total of 21 days. It was bought with a conventional mortgage, which is awesome. We can see that it was sold at list. And yeah, it was it was only marketed for 15 days, which is incredible.

So that’s amazing.

The Second Property

The next one is less comparable.

It has two bathrooms upstairs. It’s about 240 square feet bigger… its price per square foot is smaller. It’s basement is not as much finished. The gross living area is bigger. This is bigger.

And there were four thousand dollars in concessions extended to the buyer. So that house here, over on 344 West 5th North which is just two blocks from you bro, is…

I’m just pulling through those pictures real quick…

Their current days on Market was 81 and its contract time was 50 days and it went ole FHA. So that one just was really kicking and screaming to get to the Finish Line on that one.

That sucks.

The Third Property

Alright, let’s go ahead and look at this next one.

Let’s see. It’s sold. This is awesome, Sampson. This one sold for 214. They listed it 209. That’s a $5,000 like increase, which is awesome. 16 days of marketing, amazing.

Four beds. Two baths upstairs, not split. Its 877 up 877 down and it’s about 90 square feet bigger than yours. Gross living area is 877, and it’s about a year younger… year older than yours. Has a one-car garage… the last one didn’t. And it’s on smaller acreage.

They had 5,000 in concessions. So that’s probably why that’s sold price was 214, bro, as they they just stack that concession on top of it.

Just looking through these pictures real quick…

I mean you have to ask yourself Sampson does it… that’s a second kitchen. That’s a kitchen in the basement. Wow, they put a kitchen in the basement on that one. Pretty desirable.

Looking back on the first property

Didn’t really see the pictures on that first one. Did we? Pretty nice pretty well-kept bro, very similar stuff. I mean like it’s but they painted it. Anyway stuff the stuff to keep in mind Sampson is location is first condition is second prices third. All right, then we scroll down here.

The Fourth and Final Property

Look at this last one sold it sold for less than what it was listed for. Its current days on market 46.

Three beds. One full, one three-quarter. 891 square feet up, 891 square feet down, 1782 square feet total. And it’s a newer build. $4,500 in concessions.

So let’s take a look at it real quick…. Pretty big kitchen. New paint.

Stuff to think about.

Yeah, so there you go, Sampson.

Compare Against Subject Property and Current Active Market

I hope that gives you an understanding of what comps pulled… its sold averages… if your home looks kind of like these homes… then you are likely to see out of the sale somewhere around this number 211,805.

Now here’s where we go next, bro. I take that sold number and I want to see what it looks like in the area of Logan. Where does it fit?

Okay, so I do a full I do a full search. I clear it. I search the map. Sometimes it takes a second. Okay, we search the map. We do mile around the house. I only want to see active properties… there are 23 active properties. And I don’t want any short sales. I want to single family. So there’s 17.

Yeah, I think that… I think that that’ll be enough, wouldn’t you agree?

And then we go ahead… and we take this. We pull a map report.

There it is. That’s the competition bro. Those are its prices.

Now you have to ask yourself. If you put your home out there. Somewhere in this neighborhood. Where do you see a 211 price sit? Well, you’d be… let’s see if I remember… right… you’re right about here.

The Psychology of Price

I don’t know about you, Sampson, but I’ve learned something. I really have. There’s kind of a psychology to pricing.

Now, you and I both know that we want the best price possible when we go to sell. And you and I both know that when we go to buy we want the lowest price possible, within conditional reason.

And so what ends up happening is we tend to fit right about here… about eye level on pricing, and when we do that… we encourage more people to meet us reasonably.

Pricing too high

See, as you know, if you put your price way up here on the top shelf, much like when you’re in the grocery store, they’re probably going to have to ask for help and assistance to pick that up off the top shelf. And you and I both know, if you’re trying to pick something up off the top shelf and you need to ask for help, that’s going to take a long time.

There might only be one person who’s interested, maybe, and a lot of things could change the could dissuade them from trying to pick that up off the top shelf.

Pricing too low

But likewise if you go and put it way down there on the bottom shelf, you might have a lot of attention.

But you’re going to have people doing exactly what I’m doing. Where I look right here at my screen, and I see all these two hundreds and three hundreds, and this one right here 159 and I go, “What’s the deal? Okay…” and I’ll look at it, “six days on the market?” and I’m like, “Gosh, it’s a two-bedroom home… With one, three-quarter bathroom. So… it’s just a really small house.” That might be really good for the kind of person who’s looking for a home like that.

I’m not saying that you should put your home as a comparable to that property, but that guy’s down there. So whomever is looking to purchase in the 200s range, not the 100s range, well… they’re probably going to avoid that home. It might not fit all their needs. (But the will look at it as an option.)

Narrowing down to about eye level

So, you and I both know, Sampson, that if I put my price right at my eye level, which is right… here… that’s my eye level… you might only have one person who sees it the way you do, maybe just one.

So here’s my recommendation. If you’ll bring your price somewhere right about here… probably about chest level just about the eye level.. it’s going to do a lot of things for you.

First of all, our heads… and I’m talking about psychology, so bear with me… Our heads, are designed with all the muscles in our back. The hold it so it looks at low-hanging fruit. And that’s what you want your house to be the low-hanging fruit.

What’s Your Price?

Now, of course you want to get the best price possible, but not Out-Of-Reach. Nobody likes a deal, “That’s Out Of Reach.”

So what I’m hoping is that as you look at this map of homes that are available, knowing that little magic number that we have 211,805. What do you think, bro? Where do you want to put yourself? Because you know that, When it comes time to sell a house, what a home sells for is what a buyer and a seller agree on price.

You know that, I know that, everybody knows that.

So we can’t sell this home for what you need it to be, we can’t sell this home for what you want it to be, we can’t sell it for what an appraiser dictates it to be, we can only sell it for what the market will bear.

Be the low hanging fruit.

Alixander talking about pricing

So keeping that in mind, Sampson, I’m really excited for you.

My Marketing Plan

I’m really excited for putting my 14 step marketing program to work for you. I’m excited to get out there get my fliers out, get my signs out, get the pictures going, get the cleaners over there….

Don’t worry dude, I pay for the cleaners, I pay for the photography. That’s all on me. That’s a part of my listing package.

And dude, I’m so excited to get towards this house and get it out into the marketplace. Knocking the doors, holding the open house, making sure we have flyers, and banners, and I like balloons… love balloons. I would love to be able to reach out to all the agents in the area and let them know that,

“It’s time for another home to meet the market and we’ve got a really really fantastic price…”

Alixander talking to other agents

And you’re going to help me understand what that price is going to be, bro.

Review the Home & Motivations

I’m really excited for that.

So thank you very much for letting me do this current market analysis with you, and being able to kind of… explore what the market looks like, and where your home will potentially fit.

You know, I will have to come visit the house and take a look at the condition of it and you and I will have, probably, a more in-depth conversation about what this home is worth. And really what we’re going to market it at, because if we need to do repairs before we get it to the price that you want to get it to… well, that’s going to extend your time.

If we can make sure that our price meets its condition, we can go ahead and move it faster. So keep that in mind, Okay?

Now the other thing too is, Is it something you really want to do?

I mean, do you really want to go ahead and sell your home at this time? I know that you know, it means a lot to me to have the job and to get the commission. I love doing that.

But I want to caution you before you do because of one graph.

The Home Sales Graph

Okay, let’s go ahead and look at a graph real quick.

So just keeping that mile radius around this home and of single-family homes in that area, okay?

Let’s look at a home sales graph.

This is what the graph is showing me. I mean, I really hope you are seeing this because I’m having to do the hotkeys and also talk to you like a professional…

If you can see this graph. You need to tell me what you see. Anybody who’s seeing this video, you tell me, do you think that Sampson has a good chance of getting more in the future or do you think he stands a great chance of needing to take advantage of the market today and make some money?

Because I know when you bought, bro. You know when you bought, you bought over here, a little bit underneath that, bro.

Deeper analysis of the home sales report…

We’re sitting right here, where the median price of 218.. 213… my bad, in that area.

Dude, that’s incredible!

So I don’t know man.

Like, when you when you hit me up and told me that you wanted to sell it’s just like… well yeah, I mean like… take advantage of the market. But if you are looking at the same graph that I am. Well, then, you know. Of the homes that sold and they fetched a 213 price.

…and motivations for selling.

Well, do you need to sell right now?

Because if you need to sell right now, well, that’s great. I mean you could be selling for lots of reasons man.

You’ve been in that house for like four years coming up on five years and if it’s time to move, dude, let’s move. Let’s get you into a better place or even… like… if you want a nice apartment or whatever, or maybe a different neighborhood, or maybe you’re doing a job change… I’m not really sure what’s going on there. If it’s time to change your station, let’s do it.

You’re going to make bank, okay? Like… even if you find yourself fire-selling this thing, you’re gonna make bank, bro. I’m so excited for you on that.

But like… I really need to know when I come out and visit with you. I need to kind of understand… like why are we really doing this? Because this graph is showing both you and I a really cool thing.

I don’t know about anybody else, but I see a graph that keeps going up.

Since 2014.

Outro

Anyway, thank you, again, Sampson. I appreciate you and I’m done with this video.

Everybody else who is watching this video, or going to watch this video is seeing a really intimate look into how I connect with my client, Sampson, and most of my clients.

I have a very close connection to them just like this. Not as close as I have with Sampson. He’s one of my oldest friends. But it doesn’t mean that I’m avoiding any friendship with any person either because as you know at Keller Williams, we believe that it goes God, family, and then business.

And my friends are a part of my family group.

So just keep that in mind.

I’m done with this video.

I’m Alixander with the SLC real estate agency. You guys have been great. Check out my other videos, subscribe, hit the notification bell, comment, like, like us on Facebook. Check out our website.

Yeah. Thanks guys.

Have a great day.

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