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Louis Kutzke

PRICING YOUR PROPERTY LISTING

duda • March 28, 2022

                    PRICING YOUR PROPERTY LISTING


Early in the listing process we will discuss strategies involved with determining a timely and objective price range based on market realities.  The Realtors Property Resource (RPR) provides a good place to start.  Here we can look for the Automated Valuation Modal (AVM) where the properties estimate will be based solely upon publicly recorded sold data.  Next, we can look for the Realtors Valuation Modal (RVM) where the properties estimate will include on-market and off-market Multiple Listing Service data, plus publicly recorded sold data.  Now we can discuss local market conditions- is the area experiencing a buyer's market or a seller's market?  Objectively consider the property condition- how does this property compare to others in the nearby area?  Identify the properties unique features- define the standout characteristics that can add value.  Discuss the owner's timeline for a sale- are you looking for a quick sale or willing to wait for the right offer?  Review recent comparable sales- what have similar properties in your area sold for recently?  Now we can utilize Paragon's Price Analysis feature that can deliver an estimate of the number of potential buyers per the chosen price point. From the price range we can choose an initial listing price.  Here it is important to acknowledge that real estate markets shift and change.  Acknowledging real estate markets shift means considering local market cycles that will relate to seasonal trends.  The agent and the sellers will plan to monitor new listings and sales in the nearby area.  This translates to staying adaptable while being prepared to adjust the price of the listed property when local market feedback is presenting data indicators that would support a price change.  Louis Kutzke has earned the Pricing Strategy Advisor (PSA) certification.   Are you preparing to sell or buy a house - contact Realtor Louis Kutzke SRES, PSA, SRS, RSPS with eXp Realty at 608-432-4286 to discuss combining our efforts to produce a favorable outcome. Centrally located in Wisconsin Dells and serving the nearby areas in the Counties of Columbia, Sauk, Juneau, Adams, Marquette, and Northern Dane.


                          PRICING THEORY TIME IT TAKES TO FIND BUYER

Coming up with a listing price is a collaboration between the seller and the agent.  As an agent I want the seller to understand how the current market conditions, the estimated price range for the property, and the expected time involved to complete a closed sale all fit together.  An estimate of the price range will be dependent upon the date the analysis was performed because market conditions used to calculate the price range estimate are constantly changing.  Fannie Mae defines market value as the most probable price that a property should bring in a competitive and open market under conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgably, and assuming the price is not affected by undue stimulus.  The agent's timely analysis of the market conditions to determine an estimated price range is to assist the seller with choosing a listing price that a buyer would pay a seller in an open market.  The price the seller chooses to list their house for will have an influence on the time it will take to sell the property.  I like to use the diagram of the pricing pyramid to demonstrate how where the chosen price resides in relation to the estimated price range is expected to affect buyer behavior.  The pricing pyramid projects that a chosen price 15 percent above the estimated price range will attract about 10 percent of the potential buyers to look at the property.  A chosen price 10 percent above the estimated price range will attract about 30 percent of the potential buyers to look at the property.  A chosen price within the estimated price range will attract about 60 percent of the potential buyers to look at the property.  A chosen price 10 percent below the estimated price range will attract about 75 percent of the potential buyers to look at the property.  A chosen price 15 percent below the estimated price range will attract about 90 percent of the potential buyers to look at the property.  More potential buyers can mean a shorter length of time to sell- where fewer potential buyers can mean a longer length of time to sell.  It will be beneficial for a seller who chooses a listing price above the estimated price range to understand their property can be expected to have fewer viewers online, fewer calls asking about the property, fewer in-person showings, and take a longer period of time to find the right buyer.  A seller who chooses a listing price within or below the estimated price range can be expected to have more viewers online, more calls asking about the property, more in-person showings, and take a shorter period of time with finding a buyer.  The seller is in the driver's seat when choosing a listing price.  The agent's role is to deliver the information and guidance that will enable the seller to understand how the chosen price relates to current market conditions, the estimated price range, and the expected amount of time that will be involved to complete a closed sale for their property.

Glimpse into marketing your property!

By duda • March 28, 2022
Providing opportunities for a large population of potential buyers to acquire your property!

Things To Consider With Selling Your House

By duda • March 28, 2022
Are you shopping for a real estate agent to assist you with selling your property in Wisconsin Dells, Baraboo, Reedsburg, or Portage area? Send an email request to louis.kutzke@exprealty.com for a pdf copy of Seller Side Seeding. Seller Side Seeding is a Copyright description of the unique process real estate agent Louis Kutzke will utilize to list, market, and sell your property. This information is transmitted before any meeting to communicate the level of detail and ongoing effort this agent will provide to help the family better understand the service they are paying for. This added step of transparency establishes a collaborative climate fostering stronger process engagement with both the family and the agent which can produce meaningful efficiencies throughout the sale of the house and property. The family can understand who they have chosen to hire as their real estate agent, what they are paying for, why we are performing specific activities, how research can support decisions, where we are in the process and estimate the time to successful completion, and the benefit of having access to advanced technological tools. This gives you the seller the opportunity to better understand what working with Louis Kutzke would be like- before you make the decision to contract for representation. Document title: Seller Side Seeding. Copyright Registration: TXu002461592. Date: 2024-12-04. Author: Louis Kutzke is a State of Wisconsin Realtor who has earned the Seniors Real Estate Specialist (SRES) Designation, the Pricing Strategy Advisor (PSA) Certification, the Seller Representative Specialist (SRS) Designation, and the Resort and Second Home Property Specialist (RSPS) Certification. Contact 608-432- 4286. A brief list of considerations when you are thinking of selling your house. Documentation will involve filling in State forms and using email electronic signatures. Pricing will involve strategies to determine a timely and objective price range based on market realities. Listing will involve properly completing the Multiple Listing Service's digital data requirements. Staging will involve an investment of time to prepare the house for photographing. Marketing will involve communication that provides the opportunity for a large population of buyers to acquire your property. Showing will involve arranging in-person visits to your house and property. Offers will involve a comprehensive review of the monetary amount, terms, and conditions of all received offers. Negotiating will involve discussing the terms and conditions that are best for the seller at the present time based on current market conditions. Closing will involve complying with lender and title company requirements. Packing can be viewed as ongoing and best to begin once you decide to sell. Moving calls on the seller to monitor the process to assure all their belongings arrive at the next residence. Selling a house is about having a plan that enables you to envision arriving at your next choice of residence. Are you preparing to sell or buy a house - contact Realtor Louis Kutzke SRES, PSA, SRS, RSPS with eXp Realty at 608-432-4286 to discuss combining our efforts to produce a favorable outcome. Centrally located in Wisconsin Dells and serving the nearby areas in the Counties of Columbia, Sauk, Juneau, Adams, Marquette, and Northern Dane. STAGING TO PREPARE FOR PHOTOGRAPHING Staging will involve giving the seller time to prepare the house for photographing. Prior to the pictures being taken alert your neighbors of when the photographer is scheduled to visit. Make a plan for any pets to have a comfortable place while the photographer is taking pictures. Refresh the outdoor landscape by raking leaves and removing branches in the Fall season. If a garage is available place outdoor tools, and any garbage-recycling containers inside for storage. Inside remove all personal items from counter surfaces. Tidy the bathroom, clean the windows, make the beds, vacuum the floors where touch up seems needed. When the photographer arrives consider clearing the driveway of vehicles. Some home sellers will take a picture of their room with a phone camera to review the picture ahead of the photographer's visit and rearrange the space to suit how they would like to have the room appear. SELLING TAKES TIME EVEN AFTER ACCEPTING AN OFFER The Federal Housing Administration (FHA) estimates the mortgage journey from final offer to closing day, to take from about 30 to 45 days. The steps can be described as: Final offer and acceptance, Earnest money deposit, Property appraisal, FHA loan application and processing, Underwriting, Loan approval and commitment, Title search and insurance, Home inspection, Final walk through, and Closing. An FHA loan is a home mortgage that is insured by the government and issued by a bank or other lender approved by the agency.
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