A client called and wanted to know what the “magic number” was to sell her home. Keep in mind, the property had been on the market for over 3 years and we were her  3rd REALTOR. The question was, how do we find the magic number without leaving money on the table?  We have developed many ways to help our clients determine their magic number including comps, impressions, virtual tours, on site visits and our magic pricing strategy.

The Magic Number determined by Comparables

The magic number can be determined many ways.  One of the most common ways is by comparable sales.  A magic number is especially easy with identical villas or side by side home sites using relatively recent comparison sales(not listed properties).  Comparison sales can be helpful in establising square foot price for homes in a given area, but because homes are often unique to themselves, establishing the magic number can sometimes fall short.

The Magic Number determined by Activity

Today the internet helps us sell real estate fast!  The on line photos and virtual tours help agents and sellers determine whether the property is priced correctly simply by the virtual tour activity, showings, second showings and offers.  Buyers today have property information at their fingertips and if a great property matches their needs pops up, these buyers will make their interest known with virtual tours click-ins,  contracts contingent on their visit or scheduled showings.  The graph below shows how value can be determined based on this activity. – See more at BlogHiltonHeadAgent.com.

The Magic Number Based on Fact and Emotion

Our seller clients get two reports in the first 30 days of listing their property.  The first report will include a magic number based on comparables, days on market, average list to sell, price per square foot, number of similar properties for sale, condition and location.  This magic number is based on fact.  The second magic number they will receive will be based on impressions and emotion.  This report is based on feedback from agents and buyers that visited the property either virtually or physically.  From this feedback we determine a magic number using our “magic” formula.  It is amazing how close this number usually is to the actual selling price if the seller adjusts the value in a timely manner.  Of course, all bets are off if more than 30 days pass before the value is adjusted by the seller, because we all know that fair market values can change over time.

The magic number determined by cut-offs

Properties are priced in $50,000 increments and if the home or propery is priced in the corrct grouping , it will sell.  The reason for this is that buyers travel in $50,000 price ranges.  These price ranges are natural cutoffs for property pricing.  If a property is priced on the wrong side of these cut-offs, the property will sit on the market and most likely will not be shown.  We have seen properties priced over their respective cut-off sit on the market as they compete with a higher class of properties, while adjusting the price under the cutoff triggers the sale.  Sometimes it can only be a matter of a few thousand dollars holding the property back from being sold.

What is your properties Magic Number?

Whether selling or just wondering what your properties current value is, we would be happy to send to you our 5 page report that includes your properties magic number.  Of course, there is no obligation to list your property with us and this is not a requirement of this offer.  Please contact us at robbie@robbiebunting.com or call us at (843)785-7111 ext. 1 for your free report. Thank you.