YOUR EBOOK TITLE THE NEW CMA: COMPETITIVE NOT COMPARATIVE
average it’s very easy to work backwards and know when we need to re-search and re-look at our competitive positioning information.
If we are not under contract by time of that the Average Days to Close number (from our Time to Close graph) minus 30 days, that means it’s time to reposition. This is also a powerful price drop technique. Most price drops are just gut instinct guesses. But re-positioning and going through the current competition and market factors again to see what changed, can often explain why we didn’t sell and help us and our customers see clearly the price cut required. To do this we simply redo the competitive range search and redo Step 3: Competitively Position the Home & Price For Market Value. There is also value in talking about this idea with your customers early on. In some areas the Time to Close is quite long, meaning we can’t expect offers day one, or in some cases, month one. Knowing this at the forefront and letting customers know and understand the value position, if the situation arises that price cuts have to be made, they don’t hurt nearly as much because they’ve known the plan.
Let’s look at our example again to understand when we’d re-position. The Time to Close Graph looked like this:
Average Time To Close Properties in 2022 English Ranch (Fort Collins)
The Average Days Before Closed is 40 Days, the Average Closed Price is $641,600.
$400,000 $450,000 $500,000 $550,000 $600,000 $650,000 $700,000 $750,000 $800,000 $850,000 $900,000
0
20
40
60
80
100
120
140
160
180
200
Days To Closed
Source: MLS, Information deemed reliable but not guaranteed., Data Collected: 4/25/23
We can see two main takeaways here, first that the Average Days to Close number is 40 Days. So we expect the contract to come in 10 days from listing. (40 Days Average – 30 Days for Closing = 10 Days to Contract). If we are not under contract after two weeks we know we need to re-position. We also see that after 60 days on this graph almost nothing sells. What this tells us is that when we re-position we need to be more aggressive with our price because we’re running out of time (60 Days Selling Window – 14 Days Time Elapse – 30 Days for Closing = 16 Days left to get a Contract).
49
Made with FlippingBook - PDF hosting