This is your Velocity Report:
What is a Velocity Report?
A Velocity Report shows properties for sale (“Active”), under contract (“Pending”) and (“PC-Pending with Contingencies ”) within a reasonable proximity of your property, and within approximately 10% of your property’s value. This report dissects your market from a buyer’s perspective. Buyers may not always consider closed comparable sales; however, they do view competing homes on the market.
Let’s look at your numbers. If your report has a lot of “A ” records in green, those are the properties that are still active on the market. Ideally, “A” records have and equal ratio to “P” records. For example, if there are 10 properties for sale, and 8-10 properties under contract, it illustrates an abundance of buyers in your market. However, if there are 10 properties for sale, and just 1-2 pending properties, prices are unfortunately falling due to low demand.
An additional factor to account for on your velocity report is when the active properties far exceed the pending/under contract, the days on market (DOM) often climbs over 100 days to sell a property…sometimes even over 200 days on the market. When this happens, Sold properties on the report are often equal to the number of Canceled, Expired, and Terminated property count. These failed listings are what is called a “leading indicator” of property value.
If this is your market, it is unfortunately not great news. However, there is a bright spot in this conversation. Based on our observation of your property, we have quite a bit of insight as to why your property did not sell. In order to successfully sell a home, both marketing and analytical insight into very specific trends around your property are necessary.
Would you still be willing to accept offers? If so, can we talk?
What Went Wrong?
We realize you may have been called by 10-15 Realtors (per day!) that want to list your property. When choosing an agent, the decision will be in part based on the marketing plan, but should heavily be based upon market insight that reveals buyer pent up demand for a property like yours.
These are the most common questions sellers ask themselves when their property did not sell.
- Was it the wrong time of the year?
- Did the agent have the wrong marketing plan?
- Was the asking price the issue?
- Are there strong indicators that show that there is a pool of buyers?- We believe there are.
The Quality of Buyers
There are often two types of buyers. Those with, and those without a sense of urgency. Since the 1990’s we have focused on working with the “have to move” not the “want to move” buyer.
When interviewing your next agent, dig deeper into the marketing plan question when it comes to “how will you find the buyer for my property?” Does the agent have verifiable relocation experience? Discover what an agent will do outside of placing your property in the MLS.
We know how to find the buyer.
ANALYSIS – Determining Your Value and Defending it
When Realtors interview for a listing, they often lead with their strengths. Few sellers ask about the “strategy for contract negotiations.” If given the opportunity, we would like to demonstrate for you how we handle this extremely important part of the process of representing you.
We of course look at comparable properties, but so does the buyer. There is often disagreement about those properties, as the buyer is going for a discount of the sale price. Price per square footage is oftentimes one of the worst ways to determine or defend property value. We provide verifiable data that focuses on the wisdom of the financial decision to purchase your property.
* The appreciation trend of other like-kind property in your immediate area.
* The superior features of your property vs the solds and or other properties for sale in the market.
* The velocity and trends to address the buyers concerns
Zillow’s Zestimate, Realtor.com’s estimate, and 20 other sites’ algorithms often confuse the purchaser. Ideally, the agent you hire is not relying solely on closed sales, nor price per square foot.
We excel at producing a defendable position for your property and have already begun building it for you.
Fox Financial Relocation
member of eXp
Call or Text: 239.744.0188
Fox Financial Relocation
member of eXp