Sunteți pe pagina 1din 16

TRACKING A RISING

AND FALLING MARKET

RE-PRICING YOUR LISTINGS

Presented by Marsha Mitchell


Prudential Gary Greene, Realtors
October 23, 2008

Presented by Marsha Mitchell


Prudential Gary Greene, Realtors
-1-
Marsha@GaryGreene.com
August 2008
*************************************************************************
Wayne Gretzky was once asked why he was so great. He didn't
comment about his speed on the ice, the way he handled the puck or
even how he took his shots. He just plainly responded,

"I go to where the puck is going to be, not where it is."

*************************************************************************

Are you going to where the real estate


marketplace in your area is going to be rather
than where it is now?

Are your listings priced and ready for the


upcoming market changes?

FACTORS TO CONSIDER IN RE-PRICING A HOME


(Getting Price Reductions)

1. SEASONAL TRENDS
The market is about to move into its slow period as summer draws to an end and
school starts. (See HAR stats)

2. SUPPLY AND DEMAND


Fewer buyers will be looking for homes, and homes will generally stay on the market
for longer periods of time. (Online Buyer Activity Report)

3. MARKET CHANGES
The market may have shifted since the home was first listed, based on the economy
and the above conditions. (Tempo Stats)

4. POSITIONING IN THE MARKETPLACE


The true value of a property is what people are willing to pay for it. It is time to quit
talking “value” and discuss “positioning in the market place.” The true “value” of a
property is what people are willing to pay for it! Keep sellers notified of Price Changes

through the Online Seller’s Advantage Program.

5. AHEAD OF THE CURVE


By reducing prices now, we can stay ahead of the curve and go to where the “puck is
going to be” and get there in time while there are buyers still out there.
(Tempo HotSheets)

-2-
-3-
1. SEASONAL TRENDS
This HAR chart shows the decline in traffic in the 4th Quarter of the year for HAR.com.
To get an updated version of this report:
Go to HAR.com and click on Find A Home
Select Advertising from the top menu.
Select Learn More under HAR Web Statistics

-4-
2. SUPPLY AND DEMAND

Number of buyers looking for homes in the 4th quarter started decreasing as school
begins to start.

Below is a baseline BUYERS ACTIVITY REPORT from the Prudential OSA Program.
I ran a baseline on June 22 – and then another report with the same criteria on August
13. Note the decrease of online buyer activity for this particular area.

Each agent should run a Listing Presentation Report for a home in their market area.
I would recommend a larger price range and geographic range for these purposes.

for Northampton area between $136k and $204K

JUNE 22 AUGUST 13

-5-
Sales are also slow in the 1st and 4th quarters of the year as indicated in TEMPO
Statistics Report with 2008 statistics also reflecting the changing economic conditions.

These charts are a sample of the statistic reports available from the QUICK SEARCH in
TEMPO – and then selecting STATISTICS instead of SEARCH.

SEASONAL TRENDS for Zip Code 77379 (under 500k) with Averages removed
1st quarter 2007
S - 308 Properties Found
SqFt Beds FB HB LP/SqFt List Price SP/SqFt Sale Price SP/LP % DOM Year Built
Min 0 2 1 0 36.721 84900 40.265 83700 82 % 0 1957
Max 6678 6 5 3 125.399 499900 119.737 485000 111 % 533 2007
Median 2782.5 4 2 1 71.596 194900 69.764 188674 97 75.5 1999

2nd quarter
S - 419 Properties Found
SqFt Beds FB HB LP/SqFt List Price SP/SqFt Sale Price SP/LP % DOM Year Built
Min 0 2 1 0 41.195 75000 37.608 77000 77 % 0 1970
Max 8476 6 6 2 122.264 499900 120.895 490000 112 % 386 2007
Median 2790 4 2 1 73.485 195000 71.595 187000 97 46 1996
rd
3 quarter
S - 420 Properties Found
SqFt Beds FB HB LP/SqFt List Price SP/SqFt Sale Price SP/LP % DOM Year Built
Min 0 2 1 0 29.175 38850 25.773 38850 76 % 0 0
Max 6061 6 6 2 139.429 477500 127.026 472500 111 % 409 2007
Median 2856 4 2 1 74.229 196400 71.872 191720 97 51 1998

4th quarter
S - 310 Properties Found
SqFt Beds FB HB LP/SqFt List Price SP/SqFt Sale Price SP/LP % DOM Year Built
Min 0 0 1 0 37.639 64900 34.337 58553 73 % 0 0
Max 7000 6 4 3 147.504 499900 139.939 484960 106 % 474 2007
Median 2667 4 2 1 72.814 190695 70.142 182250 96 67 2000

1st quarter 2008


S - 262 Properties Found
SqFt Beds FB HB LP/SqFt List Price SP/SqFt Sale Price SP/LP % DOM Year Built
Min 1246 2 2 0 38.015 80000 35.035 77730 77 % 0 0
Max 6709 6 5 3 159.309 482763 154.702 464750 117 % 343 2008
Median 2868 4 2 1 71.263 199700 68.467 190677.5 96 66.5 2001

-6-
3. MARKET TRENDS
Market Conditions might not be the same as when the property was first listed.
It is important to track the changes in your subdivision or market area. Below is a
study for Olde Oaks where one can see the downward trend and the need for Price
Reductions in the Active Inventory. To create a Word Doc – be sure to change all
margins to .5”

OLDE OAKS – INVENTORY


HOMES BUILT BEFORE 2000

A - 79 Properties Found
SqFt Beds FB HB LP/SqFt List Price SP/SqFt Sale Price SP/LP % DOM Year Built
Min 1884 3 2 0 38.284 109000 0 0 0% 0 1974
Avg 3247 4.139 2.684 0.975 61.003 198076 0 0 0% 88.37 1982
Max 6517 6 6 2 89.703 525000 0 0 0% 368 1994
Median 3098 4 3 1 60.036 179000 0 0 0 65 1981

OP - 4 Properties Found
SqFt Beds FB HB LP/SqFt List Price SP/SqFt Sale Price SP/LP % DOM Year Built
Min 2218 4 2 1 35.445 134900 0 0 0% 7 1978
Avg 2849.5 4 2.25 1 52.088 148425 0 0 0% 50.5 1979
Max 4088 4 3 1 65.66 174000 0 0 0% 73 1980
Median 2546 4 2 1 59.158 142400 0 0 0 61 1979

PS - 3 Properties Found
SqFt Beds FB HB LP/SqFt List Price SP/SqFt Sale Price SP/LP % DOM Year Built
Min 2050 3 2 1 56.054 136900 0 0 0% 4 1978
Avg 2501.667 3.667 2 1.333 59.88 149800 0 0 0% 69.67 1980
Max 2899 4 2 2 66.78 162500 0 0 0% 114 1982
Median 2556 4 2 1 58.685 150000 0 0 0 91 1979

P - 5 Properties Found
SqFt Beds FB HB LP/SqFt List Price SP/SqFt Sale Price SP/LP % DOM Year Built
Min 2110 4 2 1 40.237 84900 0 0 0% 40 1978
Avg 3412 4.4 2.8 1 51.389 175340 0 0 0% 109.6 1982
Max 4800 5 3 1 60.769 289900 0 0 0% 273 1991
Median 3512 4 3 1 44.106 154900 0 0 0 61 1980

-7-
SOLD - past 12 months
8/1/07 – 8/1/08 (These numbers include the numbers from all the months. The 12 months – include the 9
months - include the 6 months. You can run them separately and track the STATISTICS separately, for
example by quarters – and not overlap the dates.)

S - 144 Properties Found


SqFt Beds FB HB LP/SqFt List SP/SqFt Sale Price SP/LP DOM Year
Price % Built
Min 2085 3 2 0 23.019 63900 23.055 64000 84 % 0 1975
Avg 3272.694 4.111 2.604 0.986 55.837 182737 54.662 178893.417 97.9 % 84.62 1982
Max 6659 5 5 2 91.386 540000 91.386 540000 126 % 464 2000
Median 3099.5 4 3 1 55.762 169900 55.611 166162.5 98 68.5 1980

9 Months – 11/1/07 – 8/1/08


S - 58 Properties Found
SqFt Beds FB HB LP/SqFt List SP/SqFt Sale Price SP/LP DOM Year
Price % Built
Min 2085 3 2 0 33.342 109900 32.084 104500 84 % 1 1977
Avg 3106.776 4.086 2.517 0.966 53.238 165400 51.922 161310.948 97.5 % 88.53 1981
Max 5384 5 5 2 76.653 270000 73.519 278000 106 % 255 1995
Median 3070.5 4 2 1 55.588 160950 55.056 156400 97 70 1980

6 Months – 2/1/08 – 8/1/08

S - 45 Properties Found
SqFt Beds FB HB LP/SqFt List SP/SqFt Sale Price SP/LP DOM Year
Price % Built
Min 2085 3 2 0 33.342 109900 32.084 104500 84 % 5 1977
Avg 3070.844 4.067 2.489 0.956 51.832 159167 50.342 154593.889 97.1 % 90.53 1981
Max 5384 5 5 2 70.276 259900 65.121 249000 106 % 255 1995
Median 3068 4 2 1 54.261 149995 53.885 150000 97 70 1980

3 Months – 5/1/08 – 8/1/08


S - 23 Properties Found
SqFt Beds FB HB LP/SqFt List SP/SqFt Sale Price SP/LP DOM Year
Price % Built
Min 2170 3 2 0 35.821 109900 35.854 104500 84 % 10 1977
Avg 3005.348 4.043 2.435 0.913 53.489 160752 51.449 154623.043 96.2 % 96.35 1980
Max 5384 5 5 1 70.276 259900 61.29 249000 100 % 214 1993
Median 2730 4 2 1 56.393 149900 53.969 135000 96 83 1980

-8-
FORECLOSURES (STATISTICS IN TEMPO)

Searching for FORECLOSURES in TEMPO is no longer as simple as selecting FORECLOSURE under


DISCLOSURES. To get a more accurate list, be sure to include the following in your searches:

Under Disclosures check the following:

CORPORATE LISTING (most of these are now foreclosures. There will be a few
Relo’s but the majority are really foreclosures.

FORECLOSURE

NO DISCLOSURES (No disclosures also include New Homes – so be sure to check


NO next to NEW CONSTRUCTION.

Note: According to our Gary Greene Foreclosure Department, about 90% of the foreclosures in Houston
are in the MLS. Some of the clients will not allow the listing companies to put FORECLOSURE
anywhere on the listing, so there will still be a few missing even searching with the above criteria.
First run a search with the total number of homes sold in a particular area and time. Click STATISTICS
instead of SEARCH to get the following chart.

Below is 77379 from 1/1/08 – 10/23/08


S - 953 Properties Found
SqFt Beds FB HB LP/SqFt List SP/SqFt Sale Price SP/LP DOM Year
Price % Built
Min 0 2 1 0 26.42 27900 26.42 27900 77 % 0 0
Avg 3034.568 3.905 2.602 0.752 81.795 248214 78.442 238038.903 95.9 % 79.6 1991
Max 11418 9 8 9 337.187 3850000 308.723 3525000 117 % 747 2008
Median 2829 4 2 1 73.528 199900 71.529 193000 97 57 2000

Now run the same search for Foreclosures as described above.


S - 199 Properties Found
SqFt Beds FB HB LP/SqFt List SP/SqFt Sale Price SP/LP DOM Year
Price % Built
Min 1056 2 1 0 26.42 27900 26.42 27900 78 % 0 1951
Avg 3127.181 3.95 2.658 0.754 66.149 206861 63.863 199710.141 96.5 % 74.23 1995
Max 10000 7 6 3 147.789 839000 130.351 740000 114 % 377 2006
Median 2881 4 2 1 63 169000 61.496 165000 97 61 2000

This is compared to last years YTD 0f 1268 Total SOLD


with 175 FORECLOSURES

-9-
PRE-FORECLOSURES

There is no field for Pre-foreclosure searches in MLS. The best way to search for them, is to search in the
Private Agent Remarks. To do so, you must first create a CUSTOM SEARCH.

1. Click Search and then Custom Search/Reports from the top navigation menu of Tempo.
2. Select the property type for the search
3. Click “Create Custom Search”
4. Move the fields from the middle column to the right of the fields you want to include in your search.
These could include Area, List Price, Zip Code – however you want to define the area and price.
You MUST be sure that PRIVATE AGENT REMARKS is in the right column.
5. Name the Report and click SAVE
6. Fill in the criteria. Be sure to enter the following in the Private Agent Remarks. Pay attention to the %
sign BEFORE the words. %prefor,%pre-for,%pre for

If you want to include short sales in the search, be sure to enter as follows:
%prefor,%pre-for,%pre for,%short s,%shorts,%short-s

7. Click SAVE to save the criteria –


8. Click SEARCH or STATISTICS to view results

These searches include both pre-foreclosures and short sales in the remarks.
1/1/08 – 10/23/08
S - 586 Properties Found
SqFt Beds FB HB LP/SqFt List SP/SqFt Sale Price SP/LP DOM Year
Price % Built
Min 0 2 1 0 26.435 35000 20.45 20000 50 % 0 0
Avg 2243.874 3.563 2.191 0.556 66.881 150072 64.791 145382.596 96.9 % 111.82 1986
Max 8210 7 21 3 260.482 899000 241.09 856000 166 % 461 2007
Median 2100 4 2 1 60.853 125000 59.375 125000 98 91.5 2001

1/1/07-10/23/07
S - 385 Properties Found
SqFt Beds FB HB LP/SqFt
List SP/SqFt Sale Price SP/LP DOM Year
Price % Built
Min 0 2 1 0 29.018 40000 29.762 40000 65 % 0 1920
Avg 2214.338 3.574 2.156 0.514 66.731 147766 65.233 144448.605 97.8 % 89.14 1992
Max 6769 6 5 2 179.641 695000 178.817 655000 112 % 482 2006
Median 2048 4 2 0 62.303 129900 61.176 125549 99 71 2000

- 10 -
PRE-FORECLOSURES CURRENTLY ON MARKET
A - 145 Properties Found
SqFt Beds FB HB LP/SqFt List Price SP/SqFt Sale Price SP/LP % DOM Year Built
Min 0 1 1 0 31.928 56000 0 0 0% 2 1870
Max 5162 5 4 2 181.548 575000 0 0 0% 564 2008
Median 2048 3 2 1 56.407 119000 0 0 0 103 2000

SHORT SALES CURRENTLY ON THE MARKET


A - 814 Properties Found
SqFt Beds FB HB LP/SqFt List Price SP/SqFt Sale Price SP/LP % DOM Year Built
Min 0 1 1 0 22.815 35000 0 0 0% 1 1907
Max 7622 6 6 3 254.719 1199000 0 0 0% 744 2008
Median 2059 3 2 1 60.029 120000 0 0 0 88 2002

SHORT SALES PENDING


OP - 34 Properties Found
SqFt Beds FB HB LP/SqFt List SP/SqFt Sale SP/LP DOM Year
Price Price % Built
Min 0 3 2 0 32.717 64900 0 0 0% 0 1966
Avg 2439.794 3.706 2.294 0.647 79.03 192817 0 0 0 % 110.79 1996
Max 5577 5 4 2 134.671 599900 0 0 0% 499 2007
Median 2215 4 2 1 62.617 139250 0 0 0 72 2004

PS - 51 Properties Found
SqFt Beds FB HB LP/SqFt List Price SP/SqFt Sale SP/LP % DOM Year Built
Price
Min 0 2 1 0 27.082 34900 0 0 0% 3 1954
Avg 2066.294 3.412 2.157 0.49 62.146 128411 0 0 0% 89.02 1996
Max 4546 5 4 1 127.476 399000 0 0 0% 465 2007
Median 2000 3 2 0 55.43 110000 0 0 0 56 2002

P - 77 Properties Found
SqFt Beds FB HB LP/SqFt List SP/SqFt Sale SP/LP DOM Year Built
Price Price %
Min 0 2 1 0 0 1 0 0 0% 0 1920
Avg 2046.805 3.494 2.078 0.416 66.27 135641 0 0 0% 101 1993
Max 6093 6 4 1 181.452 510000 0 0 0% 540 2008
Median 1834 3 2 0 62.555 114900 0 0 0 69 2001

- 11 -
4. POSITIONING IN THE MARKETPLACE
Where is your home positioned in the market place? Are you at the higher
or lower end of the market? What will the same amount of money buy in the
same neighborhood or even a few blocks away? Are you competing with
New Builders? Are you up to date on Price Changes in your Neighborhood?

TIP #1 - INCREASE YOUR BUYER POOL!

Change $149,900 to $150,000


Change $199,900 to $200,000

At $149.900 you will pick up searches from $125 - $150 but will NOT pick up
those from $150 - $200. By moving it to the even number, you will pick up the
lower end of a higher end buyer and get MORE SHOWINGS!

Consider this unless it dramatically changes your POSTION in the marketplace.


But agents and offices doing this are getting more showings.

TIP #2 – SET YOURSELF UP FOR AUTO-NOTIFICATION!

Set yourself up to be auto-notified of all the activity in the subdivisions of your


listings. This will keep you apprised of not only new listings, but Price Changes
and Sold properties. By reviewing Sold properties, you can see what listings are
actually selling for SP/SqFt and stay on top of shifts in the market.

- 12 -
SET YOUR SELLER UP ON THE OSA
To receive updates in the neighborhood - including PRICE CHANGES!

- 13 -
5. STAYING AHEAD OF THE CURVE
Reducing prices now will position us in the marketplace for more showings,
while there are still buyers out there. If we wait, we will find ourselves with too much
inventory in the slow times that we KNOW are coming anyway.

You can find out who is making Price Reductions in your market area – and
Present this to your sellers.

Price Reductions be one of the selections in the Hot Sheets. To run a


Hot Sheet for a selected area, you must first create a Custom Search, and then
run a Custom Hot Sheet. (See instructions on next page).

- 14 -
INSTRUCTIONS FOR RUNNING CUSTOM HOT SHEETS

CUSTOM HOT SHEETS w/ Custom Searches


For Changes including Price Reductions in a subdivision for up to 30 days back

To generate a Custom Hot Sheet for a specific subdivision, you must first create a CUSTOM
SEARCH.

1. In TEMPO, Click on Search

2. Quick Search

3. Fill in criteria. You will want the Subdivision. Make sure STATUS is set to ALL..

4. Click SAVE AS CUSTOM SEARCH

5. Name your search something like HotSheet-Olde Oaks

6. Click – Save Search

To RUN THE HOT SHEET

1. In Tempo, Click on REPORTS


Hot Sheets and then Custom Hot Sheets

2. Select the Custom Search you want to run it from – such as the HotSheet – Olde Oaks

3. Select the data you want to show up on the report

4. Select the Date Range. You can only go 30 Days Back

5. Click Generate Report

- 15 -
AFTER THE PRICE REDUCTIONS!
LET OTHER AGENTS KNOW ABOUT IT!
Now that you have the Price Reductions, you will need to be pro-active in getting the news to other
agents. In a perfect world, you would have already created a Distribution List for all of the agents that
have either Listed or Sold a home in the same neighborhood/area as your listing.

TO CREATE A DISTRIBUTION LIST FOR OTHER AGENTS


1. Check with your manager to see if they can generate a list of agents – usually by zip code - for
you to copy and paste into the BCC of your emails OR upload into Outlook. If you upload them to
Outlook, you can import them into PREA and use the PREA Cards.

2. THE LONG WAY – is that you will have to run the criteria in Tempo and copy and paste the email
addresses of both the Listing and Selling Agents in the subdivision for the past 2 years in Outlook.
(Desktop Outlook is highly recommended as it would take too long in the Web Mail version)

3. After adding them to your Outlook , create a new distribution list for this group of agents. For
example, Northampton Agents.

4. Email the listing. There are different options in emailing the information to other agents. In most
cases, it is best to create a DISTRIBUTION list for them. If you tried to email the listing from Tempo, you
would have to enter the Agent email addresses from there, and manually enter them.

Option1. You can create an email with a link to web site featuring the listing. If you have Premium Web
site, the URL for the link would be www.yourwebsite.com/theMLS# such as
www.marshamitchell.info/9110774

If you do not have a Premium Web site, and since the link is going to another agent and not a consumer,
you can create a link for it by typing in www.har.com/theMLS# - such as
www.har.com/9110774 (do not EVER send this HAR link to one of your customers as it will lead them to
other agents

Option 2. You can also use the Gary Greene FlyerMaker program, email it to yourself and then forward
the Flyer to agents in your distribution list

Option 3 (recommended). To use the JUST REDUCED FLYER in PREA! They can view the property
without clicking on a link. You would have to import your agent list into PREA.

- 16 -

S-ar putea să vă placă și