Posted by: Todd Long | March 26, 2009

One done right!

hjordan-forwebHerman Jordan has been an agent for, well, a few years so this should not surprise me but he just priced a home perfectly, marketed it correctly and got it sold.  Reviewing the file, as I do at listing, pending and closing I noticed that Herman presenting his CMA with Adjustments showing the property should sale for $186,000.  He found that most homes in the subject properties market area are selling for 96% of list price which would be a list price of $193,000.  Then he did an Absorption Rate Analysis and found there was only 3 1/2 months of inventory.  That is a fairly low number right now.  A balanced market is around 6-8 months of inventory and we typically see 8+ months of inventory in a buyers market.  So I’m sure he wasn’t to concerned when the seller wanted to price a little higher but under the $200,000 barrier.

Within a month Herman got an offer to negotiate!  The final price the buyer and seller agreed to was $1888,000 with $3,000 closing cost, closing 30 days later.  So Herman missed the sale price by about a 1/2 percent!  Not bad.

Yes it takes some specific knowledge and hard work to price a property properly, especially in this market.  Once you have done it correctly your job should get easier.  Or, you can use the PFA (Pulled From Air) method and work really hard as you chase the market down or price it to low and get multiple offers quickly.  Using the PFA method isn’t very pleasant when you have to face your client month after month.

Nice job Herman!

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