Pricing - The Key To A Successful Sale

By
Real Estate Broker/Owner with RE/MAX Broker, RE/MAX 1999033519

With all the attention from the news media about the slowing market, it's time to focus on the positive side of sucessfully selling Springfield Mo real estate. 

Marketing a home today is all about pricing. 

I recently completed a comparative market analysis (CMA) for a Nixa Mo home in Christian County.  The seller is being transferred immediately and will have to rent, make double payments, maintain both dwellings, etc.  After discussing the details with the seller, I suggested that in order to be competitive with the 40+ homes on the market, we price it $10,000 lower.  Within 5 days, the home went under contract.  

Here's how the seller profited.  Figures based on 3 months on the market, with a 95% of sales price:

Suggested Listing Price    $200,000 - $10,000$190,000
Three house payments @ $1000 x 3 months$3000
Taxes - $200 x 3$600
Insurance - $60 x 3$180
Rent - $900 x 3$2700
Utilities - $250 x 3 x 2 (two dwellings)$1,500
       Total Expenses$7,980
 Actual Sales Price190000
        Minus Expenses - $7980$7980
Savings To Seller$7980

 Peace Of Mind - PRICELESS!

Educating the client on what we estimated his profit would be, he happily agreed on the reduced listing price.  We now have a closing that will hopefully close with all parties happy. 

By the way, the buyer found the home on Springfield Homes and Springfield Mo Real Estate.

Kay Van Kampen Team

 

Kay Van Kampen

 

 

Posted by

Springfield Mo Real Estate

Kay Van Kampen / Rhonda Kay Jones

The "KAY" Team

Kay Direct:  417-839-4534

Rhonda Direct:  417-880-4762

Contact us at: kvankampen@remax.net

 

SERVICE AREA:

The "KAY" Team services the following towns in the Springfield area:  Springfield, Ozark, Nixa, Rogersville, Republic, Clever, Billings, Willard, Battlefield, Sparta, Highlandville, Spokane, Marshfield, Ash Grove, Strafford, Fordland, and Greene, Christian and Webster Counties in Missouri.

 For information on Springfield Mo real estate visit: www.springfieldmohouses.com

 

  Search For Springfield Homes

 

Kay Van Kampen | RE/MAX House of Brokers. Springfield Mo 65804

 

 

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Anonymous
Ruby Brooks
Thanks Kay for that illustration.  That's a great way to encourage sellers to price their property competively when there is so much competition.
Sep 29, 2007 03:27 PM #1
Rainmaker
1,317,476
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Each of the Sellers who have taken my advice and priced their home for the market have been able to sell their homes at a price acceptable to them.  Each has received an offer within 30 days from the date the property was listed.  Each priced their homes appropriately. Other competing properties are staying on the market 4-6 months!  Maybe it is not just the press that is the problem -- or the buyers

Sep 29, 2007 03:44 PM #2
Rainmaker
887,731
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate

Thanks Ruby.  It's simple math - I've always illustrated this to sellers and on paper it works better.

Joan, no, it's not just the press.  Clients are listening to us better because of the news media.  The consumer is focused on the market right now and realize their home might drop in value if they don't listen to the advise of the realtor.  Thanks for posting.

Sep 30, 2007 12:41 AM #3
Rainmaker
1,044,367
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate
Kay - Great job! Any successful agent know that pricing is the key to moving any product - especially homes. The art of real estate is mastering the ability to communicate the importance of this fact to a seller.
Sep 30, 2007 02:42 AM #4
Rainmaker
887,731
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate
Billl, this is one seller that knew he wanted to move and not leave his family behind....and he listened.  They are packing as we speak.  Thanks for posting.
Sep 30, 2007 01:04 PM #5
Rainmaker
513,552
Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC
What a great way to break down the expenses of not selling!
Oct 01, 2007 03:19 AM #6
Rainmaker
887,731
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate
Leigh, I used to show this to all the sellers when they wanted to overprice their home.  I forgot the basics.  Funny how some of the old, simple things still work!  Thanks for posting.
Oct 01, 2007 01:18 PM #7
Rainer
274,557
Adam Waldman
Westcott Group Real Estate Company - Hauppauge, NY
Realtor - Long Island
KAY:  What a great tool to use with sellers.  The beauty is in the simplicity of the black and white numbers right before their eyes.  Thanks for sharing this.
Oct 02, 2007 02:25 AM #8
Rainmaker
698,837
Brian Block
RE/MAX Allegiance, Managing Broker/Branch Vice President - McLean, VA
Northern Virginia & D.C. Real Estate
Kay, this is excellent to show sellers the value of selling quickly rather than letting an overpriced listing sit on the market.
Oct 02, 2007 02:29 AM #9
Rainer
78,168
David Slavin
Keller Williams Premier - Katy, TX
CDPE, ABR, SRES Keller Williams Premier
Great idea to break down the numbers into something that everyone can understand.
Oct 02, 2007 02:55 AM #10
Rainmaker
887,731
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate
Adam, an old tool, forgotten and stuffed away.  I used it again today and got another reduced listing $20,000 under the CMA.  If it wasn't for motivated sellers, it might not work so well.  Thanks.
Oct 02, 2007 12:10 PM #11
Rainmaker
887,731
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate

Thank you Brian.  Visual is always better.

David, numbers speak louder than words.  Amazing what a simple tool will do.

 

Thank you both for posting.

Oct 02, 2007 12:13 PM #12
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Rainmaker
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Kay Van Kampen

Realtor®, Springfield Mo Real Estate
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