Four tools for spot-on property pricing that hits the "sold" bullseye
Coupled with strong market knowledge, a keen REALTOR® knows that employing certain tools in the comp analysis process can help land on the right price, right out of the gate, especially when it comes to determining value based on improvements made to the property and its condition.
Here, Realtors® Property Resource (a data-based platform provided by NAR as a free member benefit) shares four tools that will help an agent refine the value of a property; use the platform’s flexible comp analysis tool; create a Sales Comparative Analysis and Valuation Workbook for harder-to-price properties; and run a real-time analysis for investment properties.
Refine Value Tool
RPR’s Refine Value tool allows REALTORS® to determine the value of a home based on property characteristics, home improvements made and market conditions. This tool can also help clients determine whether purchasing a home and then remodeling is worth the investment. There are three ways to refine the value of a property using RPR.
Start by adjusting/confirming basic facts about the property. Select Apply to see adjusted value updates and refined changes. Make a mistake? Choose Restore Original and the property’s basic facts will revert to the initial settings.
Note that you are revising an estimate based on public record data, not listing data. If a property displays no data or a zero for fields such as living area, entering data will not produce a change in value because there is no baseline available to refine.
Refine value: improvements made - Every homeowner wants to know the return on investment for home improvements. Here, savvy agents will tap into RPR’s Refine Value Tool. With up to 30 predefined home improvements to choose from, the tool accurately calculates the depreciated value of home improvements. The tool also enables users to refine a home’s value by confirming/adjusting basic facts about the property, as well as other factors such as an assessment of local market conditions, the interior and exterior of the home’s condition, lot size, view, privacy, and more.
Refine value: needed improvements - This tool will subtract costs of needed improvements from the refined value of a home. It is useful when helping homeowners to consider the monetary effect necessary repairs will have on the property’s value.
Refine value: other home improvement depreciated - When there is no available choice for a home improvement through the drop-down menu, and the user chooses “other,” RPR will depreciate the item over a 20-year period. Also, the description field for the “other” category has been expanded to include up to 200 characters.
RPR’s wizard walks you through five simple steps to generate a Comparative Analysis unlike any other offered in today’s real estate industry. You’ll confirm the home’s facts, search for and adjust the comps, land on your own list price by refining the property’s value, and then generate an RPR Seller’s Report. You can also reorder, rate (worse, same or better) and add notes to selected comps. All in one place and with the highest level of accuracy afforded to today’s Realtor®.
Pro Tip: While selecting comps within RPR, note that properties marked with a blue star are used to calculate the Realtor Valuation Model® (RVM®). As the only official valuation product of the National Association of REALTORS®, the RVM goes beyond traditional automated valuation models (AVM) by incorporating listing and sales data from the MLS into the equation.
Create a comp analysis on your mobile device: The RPR app now offers the ability to create a comp analysis using your phone and then text/email a colorful Seller’s Report to your client! Best of all, if you’ve selected comps on the RPR website, they can be viewed on mobile and vice versa. There’s also an interactive map to choose comps and advanced search functions such as property status and type.
Sales Comparative Analysis & Valuation Workbook
RPR’s Sales Comparison Analysis, primarily used by appraisers, goes into a more detailed property evaluation, typically used for harder-to-price homes. The tool leads you through a series of steps to confirm or adjust factual information about a property, and then search for and select comps. At that point, you can adjust and weight the comparable properties to yield a result that summarizes the valuation and range for the subject property.
Satisfied with your analysis? Save or share it by generating a Valuation Workbook. The Valuation Workbook summarizes the evaluation made using the Sales Comparison Analysis. It includes details about the subject property and the comps and adjustments made in the workflow, as well as an overview of local housing market conditions.
Valuate® is a web-based financial analysis and marketing tool for the purchase and sale of commercial and residential investment properties. The platform allows agents to perform real time, interactive investment analyses in a collaborative work environment. No more multiple versions of stagnant PDF files. With Valuate, digital files are easily edited and shared with colleagues, partners and clients. Valuate also provides real time scenario analyses while pitching to prospects or updating existing clients. Make edits to the analysis on the fly for wherever the conversation leads; answers questions instantly.
Read or watch more about all of the topics addressed in this article on narrpr.com.