Section 2.1 – Safe Records

Doing a Property Analysis

the main question

When you look at property in all SAFE statuses you will most likely see a pattern and answer the question, “is the property over or under priced.?” You will keep asking yourself if the SUBJECT property is “inferior to the other property…or if the SUBJECT is superior.” If you do it in this manner you will begin to determine property value.

s.a.f.e. records

• Solds
• Actives
• Failed (expired and or withdrawn and or terminated)
• Everything in the “under contract” status that applies

SOLDS

Ideally the only comps/closed sales are from the immediate subdivision.
The same style as the subject. (ranch style with ranch style or two story with two stories)
Similar age. It can be 5-10 years difference but even then styles change.

It really does not matter that much if a property is
3 bed and 2 bath and the comp is 3 bed and 2.5 baths

or if one property has a 2 car and the other has a 3 car garage

We can make adjustments for features.

It is better to pull too much data than it is to pull too few. Ideally there are 2-3, perhaps 4 solds that are relevant in the subdivision. But sometimes there is no subdivision data. That is why we look at SAFE records in every status. The back up plan if we cannot find recent or nearby closed sales is to expand the research to a larger RADIUS. However, the further you go away from the subdivision the less likely the sold comp is relevant.

ACTIVES

Once again, ideally you can find LIKE KIND properties very close to the subject property. The philosophy behind ‘active comps’ is to be able to say to a seller, “if this property down the street is not selling, and it is 150 square feet larger, and it has all these amazing features, and yet it is not selling….is it not selling because of the price or the marketing effort of the listing agent?”

Ideally you find 2-4 actives that help the seller get perspective on how their property should be priced. Actives are a great way to show a seller “what price they are not.”

FAILED LISTINGS

2-4 properties that expired or withdrawn or canceled or terminated.

Powerful part of the presentation. Most sellers think very highly of the area they live in. That the darkness of depreciation did not touch their doorstep. They often feel “that the other area may be affected but not their own area.”

EVERYTHING UNDER CONTRACT

2-4 pendings and or pending contingent or any status your MLS has for property under contract. In some MLS systems the under contract may be called pending or sometimes “active contingent” known as AC. In this final group, we want to see “everything that is under contract.”

DO WE REALLY NEED 12-16 PROPERTIES?

Sometimes it is very clear with just 2-3 properties, and we can determine the value. It is not a natural skill for a person to get a license and be able to explain the value of a property. It takes a look at all properties that are SOLD, or ACTIVE, or FAILED, or UNDER CONTRACT.

In the beginning of your analysis career it is best to over pull data. The seller cannot know more than you do.

WHAT ELSE IS NEEDED?

We need to see your CMA REPORT also known as VELOCITY REPORT. We must be able to see the CRITERIA you used in running the report. This will show up at the bottom of your report.

Plus we want to view whatever you provided to the seller or took with you on your initial walk through.

ONCE YOU HAVE SELECTED YOUR S.A.F.E. RECORDS

1. Tell us what the seller is asking and tell us what you think could be the right list price
2. Tell us which properties of those you pulled are the BEST properties to show the seller

SUMMARY

We will load it all to a system called the MIRO. We will review what we feel is the summary price for the house and how we will present it to the seller. Then you can BOOK the meeting with the seller. If for some reason they will not take the meeting we will send an email offer for their property.

What will happen after that?

With the rapport and trust you built on the walk through, we will work with you on the follow up system to convert the prospect into a listing. Remember, they only met you once, they may not be ready to turn the keys over to you to list the property. It may take 5, 6, 7 or so follow ups. But…..if you can get two listings every month, you will know with confidence that you are one of the few agents that can go out anytime they want and secure a listing.

LASTLY…

Your first analysis will be the one that takes the longest to prepare. MLS may be newer to you. Selecting properties is a learned skill. Soon you will be able to complete the property selection in 10 minutes. It is a process so be patient but know that it is worth it.

If you have a property that you you want to review with me:

send me the following

1. Realist record​
2. Velocity report that you took with you to the appointment
3. Zillow link ​

answer these questions

4. What do you think of the list price – is it overpriced? rightwhere it should be? underpriced?
5. Did they say, “We know we are a bit high”?
6. Do they have any buyer with interest
7. Why are they selling bought another divorce inheritance or other?
8. What can you say about the house condition? What looked dated / worn out /
upgraded? Give as much insight as you can.
​9. What was the discussion about the broker fee?
​10. Are they potentially able to buy thru us / have they already purchased?
11. Was this property rental / inherited / their residence?