Determining Property Values

When you decide to sell your property, the first thing you want to do is decide how much money you want to get for it. When making this crucial decision, it’s important to get a Comparative Market Analysis (CMA) of the property and determine the appropriate price range, that will bring the maximum value, in a reasonable amount of time. A Kierman Realtors agent can help you to obtain this analysis, and to steer you away from pricing strategies that have been proven not to work, and make recommendations about pricing strategies that do work. Kierman Realtors’s success in the real estate industry is largely based upon the organized system we’ve developed. The information that follows will offer the details that can help you to understand the “dos and don’ts” of pricing your home.

Evaluation of Your Property The first step in preparing a Comparative Market Analysis (CMA) is, obviously, to evaluate the property itself. This is done by a process of appraisal. An appraisal gives you an educated opinion of the monetary value of the property, or what the property is worth. An appraisal of the property can be done one of two ways, through a complete appraisal or by having an “eyeball” appraisal done.

A complete appraisal involves a professional appraiser and it takes some time. The appraiser needs to do a thorough examination of the house, examine its style, size, and any special features or amenities it may have. The economic condition of the community and state of the marketplace are other important factors a professional appraiser will take into consideration while determining property value.

Your other option is to have an “eyeball” appraisal done. This type of appraisal is not as thorough as a complete appraisal but it is better than no appraisal at all. This type of appraisal involves an experienced agent or appraiser giving a basic look-over of the property. A Kierman Realtors’s agent can perform this appraisal and give you a ballpark figure to originally work from. Kierman Realtors’s agents are familiar with the area and the property on the market and can tell you if your property is in the right price range. Kierman Realtors agents know the marketplace well, and have visited most of the properties on the market during “agent-only” open houses. With this current market knowledge at hand, a Kierman Realtors agent can perform an “eyeball” appraisal of your property and give you a good idea of how your property stacks up to the others being advertised. A more accurate determination can then be sought through the CMA process by an experienced broker or agent, or by hiring one of the licensed appraisers that Kierman Realtors can recommend.

Even if you get an “eyeball” appraisal done, you need to take under consideration the surrounding homes. Your surrounding area plays a major factor in price-setting. The state of the community can either raise or lower the price of your home. Speak to your neighbors, they may be of some help. If anyone has recently moved into your area, talk with them as well.

You should do a complete comparison of the value that you received from your appraiser and the values of the homes in your area. Adjust your price to reflect your neighborhood. You may not want to set a price that may be conceived as unreasonable for your neighborhood. This will detract interest.

Just by looking around your house, an experienced Kierman Realtors agent can give you a ballpark figure to originally work from, and a more exact figure when they complete their CMA. If you wish to get a more precise figure, you can hire an appraiser for a couple hundred dollars. Like your Kierman Realtors agent , the appraiser should give you a final number that takes all the outside factors into consideration.

Comparison to Existing Listings By getting an appraisal of your property and doing a comparison of surrounding homes, you can arrive at a starting number to base some initial decisions upon, but this might not be a thorough enough formula to arrive at a sellable price. The next step in preparing a Comparative Market Analysis (CMA) is to compare your property with the properties that are currently on the market. This will tell you what the competition looks like.

Your Kierman Realtors agent has a good idea of what is already on the market in your area and can tell you how your property stacks up to the others being advertised. If you really want to take an active role in this comparison, you can even go to some Open Houses of properties that are similarly valued to yours. With this help, you will then know whether you should increase you original number or reconfigure it.

Your local newspaper is a great place to go to get an idea of what other properties are selling for. The description of the property may give you an indication of whether the house is at all similar to yours. A Kierman Realtors agent will be able to perform a more comprehensive comparison by analyzing properties in the Multiple Listing Service. This will provide a much more accurate perspective on competitive property values.

In addition to checking out the competitive properties, another important consideration is how long have these properties been on the market? If the properties have been on the market for a long period of time, you may want to consider the fact that they are asking for too much money, and the market won’t bear the price. This is a very important consideration when setting your price, and another reason to have a real estate professional analyze the market for you.

Some people will actually visit properties that look similar to their own. You may feel funny looking at properties that you are not interested in buying, but it is a way to gain a better perspective of the marketplace. Kierman Realtors agents know the marketplace well, and have visited most of the properties on the market during “agent-only” open houses. This is just another way a Kierman Realtors agent can save you time and trouble in the marketing of your home.

Analysis of Recently Sold Homes You have evaluated your property and compared it to existing listings on the market. You can now set a price for your property – right? WRONG! If you set the price now, you are leaving out the most important part of price setting. This is an analysis of recently sold homes. This is what gives you a better picture of what price your property will actually sell at. The most time-consuming part of the Comparative Market Analysis (CMA) is creating this “recently sold homes” analysis.

A “recently sold homes” analysis should go back at least one year. If there have been major economical changes in you community during that year, they need to be taken into consideration. County records should have a listing of the houses that had recently sold. Use this information as a starting point for the comparison. It is very important to do this with an experienced eye, as no two homes are exactly the same, and markets can change dramatically in a short period of time. Kierman Realtors agents have the experience and expertise to properly evaluate all of the factors that go into an accurate market analysis.

It is definitely a useful practice to contact the real estate agents who worked with these properties and sold them. They may be able to offer insights into whether the initial price was too high, or if they thought they could have gotten more money for the property. A study on how long each of these houses were on the market for is the next step. Comparing these facts to your property’s market position is a key element in determining an appropriate price range that will work.

Upon completion of this step, your Kierman Realtors agent can provide you with a completed Comparative Market Analysis that includes the properties in your area that were sold within the past year. This report will show things such as the original asking price, the selling price, and how long the house was on the market. From this point, your Kierman Realtors agent will then discuss these numbers as well as how your home differs from the ones analyzed. It will then be possible for your Kierman Realtors representative to offer an educated opinion of an appropriate price range that will bring the maximum value in a reasonable amount of time. Setting accurate property values is just one of the ways that Kierman Realtors makes the real estate sales process easy for you.

Setting a Price When you put your property on the real estate market, it is very important to determine the appropriate price range that will bring the maximum value in a reasonable amount of time. A Kierman Realtors agent can help to steer you away from pricing strategies that have been proven not to work, and make recommendations about pricing and preparation strategies that will make your home sell quicker and for it’s maximum value. We strive to surpass the competition by exceeding your expectations

There are actually three separate and different strategies that work for selling real estate. Each strategy achieves a different purpose. The first is the standard approach for those who want to receive the most money in the least amount of time. The second works well if your priority is to sell the property very quickly. The third works well for getting the absolute maximum price for the property. A Kierman Realtors agent can help you to determine the pricing strategy that best suits your needs. Whether you are looking to sell high, sell fast, or simply meet the marketplace, a Kierman Realtors agent can make sure you achieve your goals.

Pricing Strategies that Don’t Work There are three basic strategies to pricing your property that are proven not to work. The three strategies are:

1. Pricing too high to allow for haggling
2. Pricing too low for a quick sale
3. Renovating to increase the property value.

Pricing Too High You should not try to price your property too high in an attempt to start price negotiations at an artificially high level. Studies show that the most qualified buyers will look at your house within the first month. If you set your price too high, many qualified buyers won’t bother to even view the home. As time goes by, the price of your property will need to be reduced to attract new buyers, and will often be reduced to less than what the property could have sold for in the first month. A survey has been done that shows the following:

Trying to set your price for your property too high will often come back to bite you. You will lose the best buyers and your price will need to come down anyway.

Pricing Too Low Selling your property too low is also a strategy that you should not employ. By doing so, you not only lose money that you really should have gotten from the sale, but you also risk getting less than what it is valued at. Every buyer assumes that they can buy the property for less than the listed price, and will instinctively haggle over price regardless of how low the initial price is set. Another factor is the perception that if the price is too low there may be something wrong with the property. Buyers may even skip over the listing because it is outside their target price range – meaning they are looking for “something more prestigious”. If you price too low to start off with, you run the risk of missing compatible customers, and losing money that is rightfully yours.

Renovating to Increase Property Value Another common mistake is to perform expensive renovations on the property to increase the property value. Most home owners don’t understand that the actual value of the property is set mostly by the marketplace, and less by the condition of the property itself. Therefore, performing major renovations such as rebuilding a deck or replacing the kitchen will almost always result in a net loss between 10% and 40%. This means you can put $20,000 of renovations into a property and sell it for market value; or you can just list the property for $5,000 under market value, and negotiate a final selling price that is between $10,000 and $15,000 under market value. In the latter scenario, everyone is happy, and you made an additional $5,000 to $10,000 on the sale. Renovating prior to the sale also robs the new owners of the opportunity to renovate and decorate to their individual taste, therefore being of much less value than a simple price reduction for needed renovations, and therefore less likely to sell. On the other hand, sprucing-up the property with a little paint, a professional cleaning, or by replacing a badly damaged carpet will often make the property more presentable, and therefore more sale-able. Paint, cleaning, and damaged carpet replacement will actually return a profit of 10% to 20% profit on the sale of the home.

A Kierman Realtors representative can help steer you away from pricing strategies that will not work for you, and make recommendations about pricing and preparation strategies that will make your home sell quicker and for it’s maximum value.

Pricing Strategies that Work There are actually three separate and different strategies that work for selling real estate. Each strategy achieves a different purpose. The first is the standard approach for those who want to receive the most money in the least amount of time. The second works well if your priority is to sell the property very quickly. The third works well for getting the absolute maximum price for the property.

Standard Approach The standard approach for selling real estate is, quite simply, to list the property in the price range assessed in a Comparative Market Analysis (CMA). Using this strategy you can use the CMA as a marketing tool to prove the property is worth what you ask. By using this approach you can appeal to the buyer’s intellect and create a “win/win” situation where both buyer and seller knows the price paid was fair. Being slightly flexible regarding the ultimate sale price is a realistic position to take, but if the CMA for your property shows it’s worth a specific amount, it is not unreasonable to expect that exact amount. Of course, if property inspections disclose defects or problems, then you may consider selling your property “as-is” – meaning you are selling the property without putting any money into repairs. It is important to realize that if you sell your house as-is, you will be negotiating with the buyer and will probably have to reduce your price accordingly.

Fast Sale Strategy If you are relocating soon or are in a financial bind, then selling your property in the shortest amount of time may be of greatest importance. In such an instance you may wish implement a “fast sale” strategy. This strategy involves setting the listing price in the middle range of the value assessed in a Comparative Market Analysis (CMA), and being prepared to allow about five percent of “negotiating space” in the price. Using this strategy you can use the CMA as a marketing tool to prove the property is certainly worth every penny of what you ask. The fact that you are slightly flexible regarding the ultimate sale price will assure the buyer that they are getting a super deal. Because of this provable value, the buyer can easily be motivated to provide a purchase agreement quickly to prevent others from capitalizing on this bargain.

Maximum Price Strategy If you own a particularly attractive property in a desirable neighborhood, and are in no hurry to move, then you can pursue a maximum price strategy. This involves a lot of planning, preparation, and diligence. Before you even consider this strategy, you must answer the question: why would someone pay more for my property than a similar property? The only answer to that question is: because the right buyer will fall in love with the concept of living there. Are there unique characteristics of the house or yard that a buyer would fall in love with? Is the property located in an exclusive neighborhood that is rarely available? Does the property offer grand views or secluded privacy? If there is nothing exceptionally unique about the property, then the Maximum Price Strategy could backfire and become the “Overpricing Strategy that Doesn’t Work” that was mentioned in the previous section. However, if you are convinced that someone will eventually come along who “just has to own this property” – then you may be in the position to demand a premium for the additional features or charm that the property offers.

When using any of the above strategies it is important to remember that your house will rarely be sold on its own merits, which may be difficult to realize if you’ve put a lot of time into renovations and enhancements. But more than anything, the market determines the actual sale price of your house – defined as the amount of money that an actual human being will pay for it. Make sure your pricing strategy is aligned with the market and not against it.

A Kierman Realtors agent can help you to determine the pricing strategy that best suits your needs. Whether you are looking to sell high, sell fast, or simply meet the marketplace, a Kierman Realtors agent can make sure you achieve your goals.

Getting Your Price Superior materials and well honed skills make the difference between getting your price and getting the run-around. Kierman Realtors’s experienced staff can properly present the property to the top-selling agents in the area and facilitate the dialogue that will familiarize them with the most favorable points of the property. In regard to buyer presentations, confidence and experience are often the best tools for creating the kind of relaxed atmosphere that potential buyers need to warm-up to the property. These skills will also make the difference between a comfortable negotiation and a bargaining impasse.

Superior Marketing Knowledge Selling your home at the right price can be a worrisome affair if you don’t have complete confidence in the process behind the sale. We at Kierman Realtors have built our reputation on finding the right buyer for each individual property we represent. By utilizing all of the marketing resources that are available, a Kierman Realtors agent will make sure your property is correctly assessed, well advertised, and properly presented. As a result of this system, Kierman Realtors has an excellent track record for quickly securing the best price for the properties we represent. We strive to surpass the competition by exceeding your expectations

As an active member of the National Association of Realtors, Kierman Realtors participates in several national advertising programs to reach buyers who are relocating, and our local advertising and promotion programs are proven to draw local buyers to the property. A Kierman Realtors agent can assist you in obtaining a Comparative Market Analysis to determine the best price for your property, and provide the superior presentation skills needed to make the sale.

Superior Presentation Skills Advertising and promotion will draw people to the property, but it takes superior presentation skills to make the sale. Kierman Realtors’s experienced staff can properly present the property to the top-selling agents in the area and facilitate the dialogue that will familiarize them with the most favorable points of the property. In regard to buyer presentations, confidence and experience are often the best tools for creating the kind of relaxed atmosphere that potential buyers need to warm-up to the property.

Kierman Realtors’s agents are skilled at addressing the concerns of buyers as they arise, and can spontaneously suggest solutions and alternatives to any objections. The proper presentation of disclosure issues, contract considerations, and closing processes are also vitally important, as these skills often make the difference between a comfortable negotiation and a bargaining impasse. For all of these reasons, Kierman Realtors agents must have extensive training to hone their presentation skills and prepare themselves to effectively deal with any situation. This level of knowledge, experience, and know-how make a difference between a average salesperson and Kierman Realtors real estate sales professional.

Superior Negotiating Skills The proper presentation of disclosure issues, contract considerations, and closing processes are also vitally important, as these skills often make the difference between a comfortable negotiation and a bargaining impasse. In order to get the fair market value for your house, you will need to negotiate. If the purchase offer is for less money than you desire, you are entitled to make a counteroffer. In turn, this can provoke another counteroffer from the buyer. This will need to be done until both parties agree upon a price or one party walks away from the deal. Too much haggling may cause hard feelings and deteriorate the deal.

Your Kierman Realtors representative will be there to make sure that the negotiation creates a win-win situation. Even after a price has been agreed upon, there will still be negotiations involved in the closing process. Escrow funds, physical inspections, disclosure statements, renegotiations, removal of contingencies, delivery of proceeds, and other closing challenges must be dealt with. Kierman Realtors agents are specially trained to deal with all of these issues and have the experience to guide the process to a mutually happy end.

At Kierman Realtors, your satisfaction is our most valued asset!

Marketing Your Property

Selling your home at the right price can be a worrisome affair if you don’t have complete confidence in the process behind the sale. We at Kierman Realtors have built our reputation on finding the right buyer for each individual property we represent. By utilizing all of the marketing resources that are available, a Kierman Realtors agent will make sure your property is correctly assessed, well advertised, and properly presented. As a result of this system, Kierman Realtors has an excellent track record for quickly securing the best price for the properties we represent. We strive to surpass the competition by exceeding your expectations

National Advertising As an active member of the National Association of Realtors, Kierman Realtors participates in several national advertising programs. The most important national program is the Multiple Listing Service, often referred to as the MLS. The Multiple Listing Service is basically a catalogue of all of the homes offered by Realtors. The MLS is available to all of the Realtors in the area, and the National Association of Realtors advertises every MLS listing nationwide on their world wide web site: Realtor.com. This makes every one of our real estate listing available to anyone who uses the Internet, anywhere in the world! By listing your home in the MLS, Kierman Realtors takes advantage of the National Association of Realtors national advertising campaign to promote Realtor.com, and your listing along with it!

This web site represents another of Kierman Realtors’s commitments to national advertising, as it provides the means for anyone in the world to learn more about our company, the communities we serve, and the properties we represent.

Local Advertising Kierman Realtors puts a great deal of emphasis on advertising properties locally, including the Multiple Listing Service, Newspaper advertising, direct mail campaigns, and on-site promotion.

MLS The most important local advertising program is the Multiple Listing Service, often referred to as the MLS. When your Kierman Realtors agent places your property in the MLS, it reaches 98% of all area agents and their buyer contacts. Every home we market is placed in the MLS, including a photograph of the home and detailed information about the property, including number of bedrooms, number of bathrooms, square footage, appliances, amenities, etc. The MLS is available to all Realtors so your home can be sold by any real estate agent in the area, and discovered by any person searching through the MLS.

Newspaper Advertising All of Kierman Realtors’s new real estate listings are advertised in local and/or regional newspapers in order to reach potential buyers who may not yet be working with a real estate agent.

Direct Mail Kierman Realtors has mailing lists of people who are looking for the right home for them, and also utilizes broad direct mail advertising campaigns to promote new properties.

Signage Did you know that 15% of home buyers find their dream home simply by spotting a “For Sale” sign in the yard? That is why Kierman Realtors posts a colorful sign in the yard of every real estate listing we represent. And during special events, like “Open House” presentations, we’ll put signs all around the area to guide potential buyers to the event.

Local Promotion Because Kierman Realtors agents are active members of the community, they have constant opportunities to promote the properties they represent. They are friendly with all of the business leaders, community organizations, and the top selling real estate agents in the area. This broad local networking allows Kierman Realtors agents to initiate a great deal of “word of mouth” promotion about the properties they list. This is sometimes the most powerful form of marketing, as it spurs conversations about available properties all around the local community. Other forms of local promotion include the following:

Event Promotion One of the best ways to promote a property is to hold a special event. “Open House” presentations, for instance, provide an opportunity for all of the area real estate professionals to get a close-up view of the property and learn about its special features and unique personality. Interested home buyers will also get the opportunity to visit the home in a relaxed and festive atmosphere. Signs are posted all around the area to guide potential home buyers to the event to compliment any newspaper and/or direct mail advertising that is used to support the event.

Personal Promotion With your permission, your Kierman Realtors agent can also contact your circle of acquaintances to try to gain referrals of people who may want to purchase your home. This list can include friends, business associates, and other people you may know. Of course, your Kierman Realtors agent would never contact any of your personal contacts without your permission, but these can sometimes be some of the best potential buyer referrals, and we hate to leave any stone unturned. At Kierman Realtors, your satisfaction is our most valued asset.

Agent-to-Agent Promotion Because over 81% of all homes are sold by real estate professionals, Kierman Realtors agents don’t just rely on their own advertising and promotion. They immediately inform the top selling agents within the Kierman Realtors office about a new listing, and then they inform the top selling brokers and agents from the other local real estate agencies as well. By creating a professional affiliation with the real estate sales leaders in the community, all members of this “marketing elite” become ten times as effective as an agent working alone. The sharing of information and cooperation between offices creates a more expansive pool of ready buyers who can be matched with broader array of homes for sale. In this way, broker and agent promotion becomes one of the most powerful tools for selling your home. Kierman Realtors is particularly skilled at preparing effective promotional materials for new home listings and broadcasting them throughout the real estate sales cooperative.

After your Kierman Realtors agent has spread the word that your home is for sale, the next step is to invite to all of the top-selling brokers and agents in the area to visit the property for a Broker and Agent Tour. This event differs from an open house because it is not open to the public. The Broker and Agent Tour is for real estate professionals only, and provides an opportunity for the people in the industry to get a close-up view of the property, learn about its special features and unique personality, and discuss the major selling points with all of the other brokers and agents. Special invitations are prepared that offer an overview of the home on display, top-selling agents must be contacted directly, and there will often be several Agent and Broker tours scheduled to accommodate the varied schedules of these busy professionals. The Broker and Agent tour is a powerful tool for embedding a visual image of your property in the minds of effective sales professionals, and launching a promotional program that will result in the quick and profitable sale of the property.

Advertising Preparation The photos and the information entered into the Kierman Realtors computer is used to create an inspiring listing for the Multiple Listing Service. One of the most important parts of this process is the preparation of the general home description that describes all of the special features and unique aspects of the property. This copy can also be used to create a compelling newspaper advertisement, direct mail flyer, and promotional brochure for the property.

Flyers and Brochures The next step is to have all of the promotional materials designed and printed, including the newspaper advertisements, direct mail flyers, and promotional brochures. A “For Sale” sign is then installed on the property, a guest book is customized for the open house presentations, and the brochures, flyers and advertising is distributed throughout the community. With the presentation materials complete, the Kierman Realtors agent is prepared to present the property.

At Kierman Realtors, your satisfaction is our most valued asset!