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You are here: Home / Selling ? Ways to make MORE MONEY / Price vs Value Driven Approach

Price vs Value Driven Approach

 

Know the Difference

When we start the process for your Price Driven Approach we start with the Multiple Listing Service (MLS).  This is a vague report based on other homes in the area, your neighborhood based on square footage, finished basement, and garage size. This report will include Sold, Expired, Pending, and Active.  We also request a report from RPR (Realtor Property Resource) which includes homes sold in the MLS and homes sold privately. This report relies on the data from your neighborhood and surrounding area.  It will use algorithm analytics to determine the Price Range.

Lastly, we look at the Value-Driven Approach

Next, we need to filter what an appraiser’s opinion could be about value.  Part of their mathematical modeling is a condition rating system. Depending on the condition and improvements will move the value up or down.  The appraiser will review updates, features, and quality of materials used to determine Fair Market Value.  Make sure you select a Realtor that knows how to use this approach.  

Terms to understand for Price Driven Approach

Public Record Data: AVM- Automated valuation model (AVM). A service that can provide real estate property valuations using mathematical modeling combined with a database. Most AVMs calculate a property’s value at a specific point in time by analyzing the values of comparable properties. (Example:  October of 2016 to October 2017 for 2018 Values).  Your City, or township uses this algorithm calculations modeling in their public data only to determine value ranges and averages. 

Realtors Property Resource RVM uses public data and the multiple listing service data in their algorithm calculations.  It will also give an AVM and RVM confidence score in the report. 

 

Price Driven Approach

I was watching a documentary on Warren Buffet and his approach to business.  Seeing he is in the Real Estate Brokerage business, I was curious and watched.  Throughout the documentary, he had the same message…” Price is what you pay, Value is what you get”

Why do Prices Differ in the Same Neighborhood?

Have you ever wondered why your house must sell for what your neighbor’s house down the street sold for? You see, this is what I call Price Driven Approach.  This approach where agents base what you can sell or profit from your home on a fixed price based on “other” homes.  To me, this is an inferior and outdated approach.   Most realtors use this approach when they discuss the price, what they would list the property for.  Yes, there has been a lot of changes with appraisal rules. An appraiser can use the following to name a few improvements to add VALUE; Roof, Windows, Kitchen, Bath(s),  mechanical, finished Basement, lot size, garage size, and location.  If you would like to obtain an idea of what your home is worth, fill out the form below and we will provide you with a report. 

Request Your Report Here

Value-Driven Approach

No two homes are EXACTLY the same.  There are two parts to Value.

Part One 

Looking at the property through the eyes of an appraiser.  What information will they need to decide the condition rating of the property?  (You can download the report from above)  What does your home have the other homes didn’t that can add value.  Is the basement finished, basement full bath vs half bath or no bath at all, has the following been updated; kitchen, baths, windows, roof, and mechanical.

 Part Two 

What value do the buyers see?  Does the home has everything they are looking and is it in move-in condition for them?  Each buyer is different, and that’s why I strategically place my client’s property to stand out over the competition.  I do this based on the highest level of marketing on multiple platforms and by hitting emotional triggers with prospective buyers.  What I’ve noticed….when buyers decided to buy based on emotion, they are more likely to make a better offer.   This isn’t done just by visual alone when they walk through the home for the first time.  It starts when they first see the property and read its story.

Buyer’s Need for an Emotional Attachment

Once buyers can visualize themselves they start working on their own story,  and how it will work for their family. I need to get them to FEEL  the house while viewing the property online.  Your storyboard is crucial, this is when a buyer can openly see your house as their home.  Staging at this point is important, we don’t want them to see your property as a guest in your house.  The buyer needs to start the emotional process, not a logical one. “ Logic makes them think and Emotion makes them act”  This is the 1st showing of your property to prospective buyers…shouldn’t it be the best?   When they schedule an appointment this is their 2nd showing.  The buyers are visiting the property to confirm their feelings about making an offer.  To learn more about MORE Influence = MORE 💰

 Impact of Price

We are going through some crazy times and I’ve added some valuable insight from CoreLogic’s latest Market Pluse. 

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price their house so that demand for the home is maximized. By doing so, the seller will not be negotiating with a buyer over the price, but will instead have multiple buyers competing with each other over the house.

MORE Influence = MORE 💰

https://www.metrodetroithomeexperts.com/wp-content/uploads/2020/09/Ready-to-Sell-Homebuyer-Traffic-Is-on-the-Rise.mp4

Market Stats & Updates

Know the Market You’re In! 

If you haven’t reviewed your 3-year market trends based on the average price in your City and your price range…I recommend you review it now.  The report will also provide an idea of how long it could take you to sell the property (Market Supply).   This is how long it would take to Sell ALL the home in the Multiple Listing Service if no other homes came on the market.

Monthly Market Report Recession to Recovery 

It’s important to protect your real estate investments, and to do so you need the facts.  This month has been the craziest month ever and I’ve never worked so hard trying to keep up with all the data flooding in from Wall Street, Financial Institution, and Real Estate data sources.  Holy Cow! I’m following this very closely and will have updates in most cases daily.

This report is a comprehensive walk-through of the most up-to-date information regarding the real estate industry.  So what we knew January-March, well throw it out the window. At the beginning of March, we were talking about having a sensational year. It wound up that in January and February, we sold more houses in more than a decade. So, we were in for a real prime, phenomenal year, and then, BAM! 💥Everything gets put on hold. So, let’s go over the questions that you’re going to be asked, and let’s go over the answers so that you have them.  Get Your Report in a Safe Downloadable PDF 👇👇👇

Bottom Line

It’s important to take the time to review all the data to determine the price range you choose to list your home for sale. Once you determine the range, the next step is to test the Market Your In.  Who has the better negotiation power you the Seller or the Buyer?  We’re here to help you look at all the puzzle pieces, so you succeed in selling your home for MORE 💰.  

Send me my Reports Price Vs Value

First and Foremost, Safety First! 

As we move forward trying to navigate our way through our new surroundings. Putting your dream of a new home on HOLD shouldn’t be one of them.  Now more than ever knowledge will be your power. Know the Market You’re In and your Negotiation Power. Check out Categories for additional updates regarding the Market | Buying & Selling.

In Closing

If you have any questions, contact us: Chatbot 🤖 at the bottom.  Contact me by Email 📩 or my Cell 📲 @ 248-343-2459.  With all the doom and gloom of the virus, one thing history has shown us, this will NOT define us.  Stay safe! Please share your thoughts below or what future article you would like to see. Your opinion is important to us…. this site is for you ❣

 

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Metro Detroit Home Experts Review – Mrs. Goudy

Review for Metro Detroit Home Experts – Pam Sawyer at Team Tag It Sold  My Attorney recommended Pam Sawyer from Metro Detroit Home Experts to help me sell my home.  My husband died of COVID-19 in April.  I had no idea what to do or how to sell.  My house… Read more “Metro Detroit Home Experts Review – Mrs. Goudy”

Metro Detroit Home Experts Home Review - Mrs. Goudy
Trinita Smith-Goudy
Home Selling Client

Metro Detroit Home Experts Review – Miah Family

Review for Metro Detroit Home Experts – Pam Sawyer at Team Tag It Sold  I found Pam Sawyer from Metro Detroit Home Experts online. The best experience Realtor I ever met in my 20 years of experience, I meet someone who is sophisticated. Her name is Pam Sawyer. I deeply… Read more “Metro Detroit Home Experts Review – Miah Family”

Metro Detroit Home Experts Home Review - Miah Family
Shomij Miah
Home Buyer Client

Metro Detroit Home Experts Review – Stacey P.

Review for Metro Detroit Home Experts – Pam Sawyer at Team Tag It Sold  Without Pam Sawyer from Metro Detroit Home Experts helping me through this very difficult time… I don’t think our house would have been sold.  The big “D” on top of the pandemic sent me over the… Read more “Metro Detroit Home Experts Review – Stacey P.”

Metro Detroit Home Experts Home Review - Stacey P
S. Pierce
Home Selling Client

Metro Detroit Home Experts Review – Gordie W

Review for Metro Detroit Home Experts – Pam Sawyer at Team Tag It Sold  I meet Pam Sawyer at Metro Detroit Home Experts years ago when she had a home for sale in my neighborhood.  I liked her marketing style and when my wife passed I called her. I’ve Moved… Read more “Metro Detroit Home Experts Review – Gordie W”

Metro Detroit Home Experts Home Review - Gordie W
Gordie W. Former Editor Macomb Dailey
Home Buyer Client, Home Selling Client

Metro Detroit Home Experts Review – Barrett Family

Metro Detroit Home Experts Review – Barrett Family I called Pam Sawyer from Metro Detroit Home Experts from her sign on one of the homes she had for sale. Our Move Up Dream Home… We had Pam work with us with both the selling of our home and purchasing a… Read more “Metro Detroit Home Experts Review – Barrett Family”

Metro Detroit Home Experts Review - Barrett Family
Mr. and Mrs. C. Barrett
Home Buyer Client, Home Selling Client

Metro Detroit Home Experts Review – Kuron Family

Review for Metro Detroit Home Experts – Pam Sawyer at Team Tag It Sold  I meet Pam Sawyer from Metro Detroit Home Experts at an Open House. Excellent, Excellent, Excellent… My wife and I had been looking for a home on our own for about three months when we ran… Read more “Metro Detroit Home Experts Review – Kuron Family”

Metro Detroit Home Experts Review - Kuron Family
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Home Buyer Client, Home Selling Client

Metro Detroit Home Experts Review – Sutter Family

Review for Metro Detroit Home Experts – Pam Sawyer at Team Tag It Sold  We originally called Pam Sawyer from Metro Detroit Home Experts when our neighbor’s home sold relatively quickly.  The Theils used several agents before Pam and were unsure what she did, but the home sold quickly for… Read more “Metro Detroit Home Experts Review – Sutter Family”

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Mr.& Mrs. M. Setter
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Metro Detroit Home Experts Review – Rob and Angie

Review for Metro Detroit Home Experts – Pam Sawyer at Team Tag It Sold  I called Pam Sawyer from Metro Detroit Home Experts on Easter Weekend.  The best way to describe Pam is her Patients and Determination!… We’ve had experiences with several realtors. Pam Sawyer truly goes above and beyond.… Read more “Metro Detroit Home Experts Review – Rob and Angie”

Metro Detroit Home Experts Home Review - Rob and Angie
Rob & Angie
Home Buyer Client

Metro Detroit Home Experts Review – Ted and Mel

Review for Metro Detroit Home Experts – Pam Sawyer at Team Tag It Sold  We met Pam Sawyer from Metro Detroit Home Experts when our home didn’t sell after three other agents.  She sent us a letter, and I called her. We had a Unique 30 + Acres home in… Read more “Metro Detroit Home Experts Review – Ted and Mel”

Metro Detroit Home Experts Review - Mel and Ted
Critzon Family
Home Selling Client

Metro Detroit Home Experts Review – Mrs. G

We met Pam Sawyer with Metro Detroit Home experts through a friend that had used her services before. She made a Tough Situation Painless…Pam was referred, and we were lucky to work with her. We had to sell our Mother’s home when she went into a nursing home. Pam’s knowledge,… Read more “Metro Detroit Home Experts Review – Mrs. G”

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Mrs. G.
Home Selling Client

Metro Detroit Home Experts Review – Weiner Family

Review for Metro Detroit Home Experts – Pam Sawyer at Team Tag It Sold  We called Pam Sawyer at Metro Detroit Home Experts after receiving a letter when our home didn’t sell the 1st time. When she did the proper advertising, it Sold 1st Day…Pam Sawyer is a true professional.… Read more “Metro Detroit Home Experts Review – Weiner Family”

Metro Detroit Home Experts Home Review - Weiner Family
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Home Selling Client

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