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Strategic Pricing Insights for Real Estate Success: Data-Driven Approaches

In today's dynamic real estate market, leveraging data is crucial for achieving optimal pricing strategies. This guide delves into effective pricing systems using statistical analysis, emphasizing the transformation of data into actionable knowledge. Understand the nuances of market differentiation, visual simplicity, and the odds of selling in various regions such as Portland, Bend, and Colorado Springs. Additionally, explore the Pricing Paradox, as proven by academic research, to refine your selling techniques and enhance your understanding of market behaviors for successful transactions.

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Strategic Pricing Insights for Real Estate Success: Data-Driven Approaches

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  1. Survive & Thrive! Larry Kendall

  2. Strategy 12: Statistical Pricing System(Page 22)

  3. Pricing Strategy • You & seller against market • Turn data into knowledge • “Big picture to small picture” • Keep it simple & visual • Differentiate – “Odds of Selling”

  4. David Knox Pricing Videowww.davidknox.com

  5. Repeat Sale Index www.ofheo.gov Office of Federal Housing Enterprise Oversight

  6. Oregon Real Estate Markets(Home Appreciation Rate 1st Qtr. ‘07) 1-Yr. Qtr. 9) Corvallis 13.87% 1.46% 10) Bend 13.67% 0.37% 13) Salem 13.44% 1.85% 14) Portland-Vancouver 11.00% 1.33% 38) Eugene-Springfield 9.00% 0.75% United States Average 4.25% 0.45% Source: Office of Federal Housing Oversight

  7. Greater Portland Market(Detached home supply/demand ) April May June Total Sales 2nd Q 2007 2,405 2,572 2,496 7,473 For Sale 6/30/07 12,899 Odds of Selling 2nd Q 2007 (7,473 ÷ 12,899 = 57.9%) Windermere Odds of Selling (983 ÷ 1,561 = 63%) Sales 2nd Q 2006 2,606 3,057 3,390 9,053 For Sale 6/30/06 9,340 Odds of Selling 2nd Q 2006 (9,053 ÷ 9,304 = 97.30%) Source: Facts and Trends/RLS

  8. “Would you like to see your odds?

  9. Colorado Real Estate Markets(Home Appreciation Rate 1st Qtr. ‘07) 1-Yr. Qtr. 5-Yr. State of Colorado 3.30% 0.40% 21.15% Colorado Springs 4.17% 0.84% 27.25% Boulder 1.55% -0.28% 13.90% Denver 1.09% -0.34% 14.78% Fort Collins/Loveland 0.61% 1.38% 16.73% Greeley -1.56% -1.17% 11.52% Source: Office of Federal Housing Oversight

  10. Fort Collins Housing MarketResidential Listing Inventory Homes Listed Homes Sold

  11. $320,000 - $339,999(Detached home supply/demand ) The Market The Group, Inc. Sales 1st Q ’07 9 12 Homes Listed 1st Q ’07 33 13 Homes for sale 3/31/07 46 17 Odds of Selling in 3 months 27% 92% Odds of Selling after 3 months 20% 71% Source: IRES

  12. Property “B” Pricing Study

  13. ScatterGrams & Price Lineswww.scattergrampricing.com

  14. The Pricing Paradox(Dr. Barry Schwartz, Professor of Psychology Swarthmore College, “The Paradox of Choice”)

  15. The Pricing Paradox (Research study of sellers) Group AGroup B Original List Price $600,000 $600,000 Price Reduced $575,000 $575,000 Price Reduced $550,000 $550,000 First Offer $520,000 $520,000 100% rejected 100% accept/counter* * Pointed out - purchased 10 years ago for $250,000 Source: Swarthmore College Research, Dr. Barry Schwartz

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