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Survive & Thrive!. Larry Kendall. Strategy 12: Statistical Pricing System (Page 22). Pricing Strategy. You & seller against market Turn data into knowledge “Big picture to small picture” Keep it simple & visual Differentiate – “Odds of Selling”.
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Survive & Thrive! Larry Kendall
Pricing Strategy • You & seller against market • Turn data into knowledge • “Big picture to small picture” • Keep it simple & visual • Differentiate – “Odds of Selling”
Repeat Sale Index www.ofheo.gov Office of Federal Housing Enterprise Oversight
Oregon Real Estate Markets(Home Appreciation Rate 1st Qtr. ‘07) 1-Yr. Qtr. 9) Corvallis 13.87% 1.46% 10) Bend 13.67% 0.37% 13) Salem 13.44% 1.85% 14) Portland-Vancouver 11.00% 1.33% 38) Eugene-Springfield 9.00% 0.75% United States Average 4.25% 0.45% Source: Office of Federal Housing Oversight
Greater Portland Market(Detached home supply/demand ) April May June Total Sales 2nd Q 2007 2,405 2,572 2,496 7,473 For Sale 6/30/07 12,899 Odds of Selling 2nd Q 2007 (7,473 ÷ 12,899 = 57.9%) Windermere Odds of Selling (983 ÷ 1,561 = 63%) Sales 2nd Q 2006 2,606 3,057 3,390 9,053 For Sale 6/30/06 9,340 Odds of Selling 2nd Q 2006 (9,053 ÷ 9,304 = 97.30%) Source: Facts and Trends/RLS
Colorado Real Estate Markets(Home Appreciation Rate 1st Qtr. ‘07) 1-Yr. Qtr. 5-Yr. State of Colorado 3.30% 0.40% 21.15% Colorado Springs 4.17% 0.84% 27.25% Boulder 1.55% -0.28% 13.90% Denver 1.09% -0.34% 14.78% Fort Collins/Loveland 0.61% 1.38% 16.73% Greeley -1.56% -1.17% 11.52% Source: Office of Federal Housing Oversight
Fort Collins Housing MarketResidential Listing Inventory Homes Listed Homes Sold
$320,000 - $339,999(Detached home supply/demand ) The Market The Group, Inc. Sales 1st Q ’07 9 12 Homes Listed 1st Q ’07 33 13 Homes for sale 3/31/07 46 17 Odds of Selling in 3 months 27% 92% Odds of Selling after 3 months 20% 71% Source: IRES
The Pricing Paradox(Dr. Barry Schwartz, Professor of Psychology Swarthmore College, “The Paradox of Choice”)
The Pricing Paradox (Research study of sellers) Group AGroup B Original List Price $600,000 $600,000 Price Reduced $575,000 $575,000 Price Reduced $550,000 $550,000 First Offer $520,000 $520,000 100% rejected 100% accept/counter* * Pointed out - purchased 10 years ago for $250,000 Source: Swarthmore College Research, Dr. Barry Schwartz