YOUR EBOOK TITLE THE NEW CMA: COMPETITIVE NOT COMPARATIVE
STEP 2.1: Find Comparable Recently Sold Properties & Market Value Trendline STEP 2.2: Establish Pricing & Competitive Ranges LOREM IPSUM STEP 2: ESTABLISH VALUE BASED ON HISTORICAL TRENDS
The Pricing Range
Earlier I said the pricing range was the potential historical dollar range that your subject property would be worth based on the past sales. When it comes to putting this range in practice, we will use the Scattergram and the value we found from comparing to recent sales as a starting point. There are rare exceptions to the rule, but usually we want to have a potential price range that contains the base price and extends a little above that base number and a little below. Using the example we’ve been working with let’s look at the pricing range.
In the last step we found our base price to be $750,000 but we know that we could price it higher or lower depending on competition or market movements. We are going to boil down the Competitive Positioning Process that will help us find the exact number we want to use, but first we want to create a guide for ourselves. This guide is the pricing range that makes sure we stay on track and don’t go too high or too low in the positioning. A good base rule is to start with a +/- 5%. Take this number and round down and up to find whole $10,000s integer. Again, this isn’t set in stone, but that’s why it’s a base rule that you can change.
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