INVENTORY in a CHANGING MARKET and AVOIDING INVENTORY WITH THE WORLDWIDE ERC BMA

1. INVENTORY in a CHANGING MARKET and AVOIDING INVENTORY WITH THE WORLDWIDE ERC BMA Tools for Training Your Relocation Team

2. What Today’s Consumers Are Demanding: Is your Pre Marketing & Inventory home being displayed correctly?

3. What year is this?Make sure your home is being advertised 24/7!

4. Electronic Showing Reports Additional views during Featured Home “run”

5. ExpectationsAssist the transferee, the third party, and the corporate client - Establish a realistic listing price - Recommend maintenance/improvement of the property condition to beat the competition - Create an appropriate marketing assistance strategy - Evaluation of market conditions and prospective buyer reactions

6. Accurate BMA’s don’t come easy! Every BMA needs to be executed perfectly! Accuracy is critical in many fields! Especially in a softer market.

7. Focus on the Broker’s Market AnalysisFront and Center: Condition Cost vs. Contributory Value The amount it takes to repair or improve a property may not directly translate to a similar amount of value. There is no standard rule for assigning value assessments to repairs and improvements. Each market will differ as to how much of an impact certain improvements will make on a property’s value.

8. Focus on the Broker’s Market AnalysisInspections When does the third party or corporation inspect the home?

9. Focus on the Broker’s Market AnalysisIt’s ALL about Absorption Rates Companion pieces to this section may include Agent Metrics Absorption Rate Calculation One Line Active Reports w/MT New Construction Promos

10. Focus on the Broker’s Market AnalysisMore about Absorption Rates • The absorption rate is defined as the number of months needed to sell the current housing inventory available. The absorption rate is different from the “days on market” statistic. • Share the MSI (Months Supply of Inventory) on first visit. • Also present expired listings to paint the picture of what happens if home is overpriced. Absorption Rule of Thumb • 0-4 months supply = Shortage • 4-7 months supply = Balanced Market • 8 or more months = Oversupply

11. Focus on the Broker’s Market Analysis

12. Focus on the Broker’s Market Analysis Most Likely Sales Price vs. Market Value The purpose of the BMA form is to determine the “most likely sales price” of a property (both as is and with repairs and improvements). While the two terms may appear to be the same thing, “most likely sales price” and “market value” are quite different. An appraiser determines market value. Brokers are asked to provide their opinion on what is the most reasonably assumed, negotiated sales price for the property, given its condition, characteristics, and general marketability in the face of competing properties, within the defined marketing period

13. Focus on the Broker’s Market Analysis BMA Addendum Should • Review and describe how the financing outlined on page one will affect marketing • Describe the market concessions and/or incentives that will be utilized and why they are necessary • Describe how the positive and negative property features should be handled, (by price, correction of flaws, etc.). Include photos. • Condition: report and address * So many choices for buyers * Staging * First showing is online * The true cost of disrepair • Describe your marketing efforts and tools – specifically focus on internet enhancements ….considering the most likely buyer

14. Encourage Staging

15. A Realtor’s Dream