2. Overview:
Property was listed on the market in late July for $369,000. The price
was reduced to $339,000 the next month, then reduced again to
$299,000 the month after that. The property was previously used as a
rental, but the owner is getting tired of college student tenants who
cause damage and wear out materials faster than the average tenant.
The proceeds of this sale will go towards investing in a flip which will
make back any losses they may have to cut. The property is currently
vacant.
Goals:
1. Analyze the market to establish an expected sales price.
2. Create a game plan to get this property sold for its highest
value given the seller’s desired timeframe.
3. What does this report include?
This report will provide information on the relevant and Hyper-
Local market in your area, comparable properties, estimated sales
price, and a sales strategy. “Relevant” meaning at least 3
bedrooms, between $200,000 and $400,000 list price, 3 or more
bedrooms, move in condition, and near E Carson St.
4. Active
18%
Sold
53%
Expired
19%
Withdrawn
10%
Off Market
29%
Market Over Past Year
Active Sold Expired Withdrawn
This is a general representation of
the competitive marketplace:
Properties between $200-400k, 3+
bedrooms, and close to E Carson St.
• 53% of the listings in this market sold within the last year.
• 18% are still trying to sell, while the remaining 29% are no longer on the market at
this point. Some of the properties are off market right now due to waiting until the
spring market, renting the properties out instead of selling, and change of mind.
Market Report – South Side (Relevant)
5. Market Report – South Side (Relevant)
3 3
2
1
13
6
5
3
4
7
2 2
0
2
4
6
8
10
12
14
200-250 250-300 300-350 350-400
#ofListings
Price Range ($ in Thousands)
Satus vs Price Range
Active Sold Off Market Linear (Sold)
• The higher you go above
$250k, the smaller your buyer
market gets (as shown by the
dotted trend line)
• 48% of the sold homes were
priced between $200-250k
• There were more listings
pulled off the market than
sold in the past year for
properties priced between
$250-300k
6. Market Report – South Side (Relevant)
0
1
2
3
4
5
6
January Februrary March April May June July August September October November December
#ofOfersAccepted
Month Offer Was Accepted
Offers Accepted• The hottest months
for getting an offer
were April, May,
September, and
October.
• There were no offers
in January,
February, or
November.
• The selling market
seems to be from
April to October.
7. 0 0
360
96.5
22.5
94.5
175.6
67.5
10
124.6
0
97
Avg Days Until Contract
Avg Days Until Contract
Market Report – South Side (Relevant)
The average days until contract from April to
October (the selling market) is 84 days. This
means that you would have to list your home at
least 84 days before April to get maximum
exposure to your property. 84 days before April is
Saturday, January 7th.
One marketing tactic is to pull the home off the
market in January and February since no offers
were accepted in those months last year. This
could be effective, but I believe it would reduce the
exposure to anyone looking for a home. People are
relocating to Pittsburgh for work throughout the
year which is represented by the 2 offers that were
accepted last year in December.
8. Market Report – South Side (Relevant)
0
20
40
60
80
100
120
140
160
180
200
200-250 250-300 300-350 350-400
Average Days Until Contract by Price Range
Price Range ($ in Thousands)
Any home over $300k in
Southside is likely to take
longer to sell.
The turnover rate for homes
between $200-300k is faster
than $300-400k. Homes
between $300-400k still sell
but that must be the accurate
pricing otherwise it will greatly
reduce the likelihood of selling.
9. Market Report – South Side (Hyper-Local)
*Hyper-Local meaning a ¼ radius around the property address
Active
17%
Sold
61%
Expired
22%
Other
22%
Market Over Past Year
Active Sold Expired
The Hyper-Local market makeup is
very similar to the wide market
makeup of the Southside.
In the spring 2017 market, we can
expect that 61% of the Hyper-local
listings will sell.
The market is warm but not hot.
39% of listings are not selling. It is
important to strategically price and
market the property to outshine the
competition in the H-L market.
10. Market Report – South Side (Hyper-Local)
1
1
1
0
6
2
2
1
3
0
0
1
200-250 250-300 300-350 350-400
#OFPROPERTIES
PRICE RANGE
STATUS VS PRICE RANGE
Active Sold Off Market Linear (Sold)
55% of homes sold for between $200-250k
12. 2511 Jane
• Sold for $268,500 in 21 days
• On-street parking
• 3 Beds/2.5 Baths
Compared to 24th, Jane has:
- Worse curb appeal
+ Better Kitchen
+ Open Concept
- Worse Fireplace
+ Nice patio slab in back
+ Staged
13. 2102 Sidney
• Sold for $314,900 in 11 days
• On-street parking
• 4 Beds/2 Baths
Compared to 24th, Sidney has:
= Similar curb appeal
+ Better Kitchen
+ Better Condition Brick Wall
+ Better Outside Area
14. 153 S 19th
• Sold for $303,000 in 97 days
• On-street parking
• 3 Bed/3 Bath
Compared to 24th, 19th has:
+ Better curb appeal
+ Better Kitchen
+ Open Concept
+ Furnished
+ Sauna
+ Better outside area
= Nice Bathrooms and Finishes
15. 2801 Jane
• Sold for $287,500 in 55 days
• On-street parking (Parking
option with fence removal)
• 4 Bed/3.5 Bath
Compared to 24th Jane has:
+ Parking option
- Outdated in every room
+ Rooftop Deck
16. 158 S 20th
• Sold for $294,900 in 6 days
• 2 Car Attached Garage
• 4 Beds/2.5 Baths
Compared to 24th 20th has:
- Worse curb appeal
+ Back Deck
+ Garage
= Average Kitchen
- Worse Bathrooms
= Nice floors and finishes
17. 131 S 19th
• Sold for $270,000 in 12 days
• On-street parking
• 3 Bed/2 Bath
Compared to 24th, 19th has:
= Similar curb appeal
+ Better outside area
+ Better Kitchen
= Nice Bathrooms
+/- More modern living room
18. 1914 Sidney
• Sold for $308,400 in 46 days
• 2 Car Detached Garage
• 2.5 Beds/2 Baths
Compared to 24th, Sidney has:
+ Better curb appeal
+ Garage and Yard
= Nice but small kitchen
= Rough brickwork
- Worse floors
- Smaller house
19. Walk through of Property
Pros:
• Nice floors and paint job
• 1st floor washer and dryer
• Ductwork looks new
• Window trimmings in 1st floor BR
• Smell of BBQ from Double Wide
• Nice big showers
• Small upstairs porch
• Upstairs bathroom/closet space
• Cool black stand in upper master
• Has a lot of potential
20. Walk through of Property
Cons:
• Bad impression from outside
• Can you hang a TV over fireplace?
• Insulation on front door. Noisy
• No staging
• Kitchen faucet not attached
• View from kitchen window is garbage and rust
• Basement is rough
• What’s the best use for 1st floor BR?
• Not all light switches seemed to work
• Black stand in master really loose
• Burnt out light bulbs
• Beeping throughout the house drove me insane after 20 minutes
• 1st floor BR slopes down
• Neighbors door looks right into 1st floor bedroom
• Door cluster by 1st floor Bath
• Captured 1st floor bath
• Pipe leak in 1st floor bathroom
• Top of stairs not flush
• Captured room on 2nd floor in back
• Deck door frozen shut? Couldn’t open
• Clean up outside
• Handle for downstairs toilet isn’t attached
• Caulking in some areas isn’t well done
21. Estimated List & Sales Price
• Avg Sales Price of Homes within ¼ mile that are move in ready
= $269,988
• Based on the prior Comparable Properties, I believe the sale price will be
between $270-280k ($275k expected value)
• Based on the properties that are currently on the market in South Side, I
believe you should be listed at $285k. With the average home in South Side
selling for 95.7% of the list price, I believe 24th will sell for $272,500.
• Weighted Average Sales Price – the price adjusted for the importance of each
analysis
= (269,988 x 15%) + (275,000 x 60%) + (272,500 x 25%) = $273,623 Sales Price
• Average Sales Price in Hyper-Local market is 95.754% of the list price.
= $273,623 sales price / 95.745% = $285,783 ~ $285k List Price
22. Sales Strategy
• See where the market is in March and price accordingly ~ somewhere
between $275-290k. Expect to sell for $270-280k, depending on how
well you execute the sales strategy to generate more buyer leads
• Aggressive marketing: Internet, Phone, Email, Businesses
– Internet: Facebook, Google, and Youtube ads
– Phone: Calling everyone who clicks on the MLS page and chasing leads
– Email: Send emails to all agents and brokerages surrounding South Side
– Business: Ask to put for sale flyers in SS businesses (Double Wide)
• Mild staging: Artwork, lighting fixtures, rugs, towels, few chairs,
maybe a bed…Focus on Living Room ~ 1st and last impression
• New Pictures after staging to get more showings
• GET IT IN SHOWING QUALITY
23. Sales Strategy - Continued
• GET IT IN SHOWING QUALITY:
– Outside: Add stair mat in outside front (similar to 90 24th st), put railing
out front on stairs (maybe), remove trash can, bottom of front door not
flush, paint chipping, for sale sign is sideways, mail in mailbox, branches
growing on right side, window film bubbling on front door, old light fixture,
remove junk behind the house, remove/replace green sheet on fence, clean
up the visible gutters, front door frame needs finished.
– Inside: Door insulation (lots of noise from the street), artwork on the brick,
fix kitchen faucet, add window trimmings to kitchen window to hide view,
add window trimmings on all windows, fix pluming issue in 1st floor
bathroom, fix handle on 1st floor toilet, try to fix the top stairs not being
flush, crooked finishes (vents, drawers, change burnt out lights, use rug
where floor is sloping, add artwork; lighting; rugs; window treatments;
table; chairs; desk. Make the living room the best staged ~ 1st and last
room they see.
24. Sales Strategy - Continued
• Layout
– The 1st floor room would be a nice office space so that people could walk
through to use the bathroom and not intrude on someone’s privacy.
– As you come up the stairs, there is a room on your right which would be a
great bedroom with a balcony and a walk in closet and/or office space that
flows into the bathroom.
– The 2nd bedroom is on the left side of the stairs and the master is on the very
top floor.
– The 2nd bedroom does not have direct access to a personal bathroom, but could
use the downstairs bathroom if needed.
– The captured 2nd floor bathroom is the biggest functional issue and it’s best use
is a bathroom for the whole 2nd floor.
– You will NEED to help buyers visualize this layout otherwise they will be
attracted to an easier property layout in another house. Use a few pieces of
furniture to give them the idea of the best layout.
25. Summary
• Keep on Market
• Fix issues listed in Walk Through and Showing Quality
• Update pictures once issues fixed and mild staging complete
• Reassess market in beginning of March and drop the price to
between $275-290k based on competition in South Side.
• Utilize aggressive marketing strategies
• If you really need to move it, offer 3.5% commission
• You should get an offer for $275k+ by June
26. Question: What about price dropping?
• The idea is to price drop now with the intention of selling quickly
as opposed to renovating the kitchen, face-lifting the front, and
touching up a few details inside to sell for a higher value.
Goals:
1. Assess the market to see if we could expect to sell in the next 3
months at a lower price.
2. Create a cost-benefit analysis to determine if it would be more
profitable to sell now at a lower price or update and sell for a
higher price.
27. Assess the Market
1 Bedroom, 0
2 Bedroom, 53 Bedroom, 1
4 Bedroom, 2
Current Listings $250-300k
1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom
1 Bedroom, 4
2 Bedroom, 5
3 Bedroom, 5
4 Bedroom, 2
Sold Listings $250-300k
1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom
37% of the market is 3+ bedrooms. Only 1 3 Bed. 43% of market is buying 3+ bedrooms
28. Current (Price) Comparable Properties
Address Exterior Interior Interior
82 S 14th St
3 Beds/2 Baths
$275,000
(Just listed 12/28)
1711 Larkins
4 Beds/2.5 Baths
$269,900
2016 Sidney
4 Beds/2 Baths
$264,999
Based on the current market, you should price 24th between $270-275k as-is
29. Past (Price) Comparable Properties
Address Exterior Interior Interior
131 S 19th
3 Bed/2 Bath
Sold for $270k
In May, 12 DOM
2511 Jane
3 Bed/2.5 Bath
Sold for $268.5k
In Nov, 21 DOM
2328 ½ Sindey
3 Bed/2 Bath
Sold for $250k
In Dec, 172 DOM
Based on past sales, you should expect 24th to sell in the $260-270k range as-is
30. Overall Market Assessment
• In the current condition, you should price 24th between $270-
275k and expect it to sell for $260-270k.
• The sooner you want it to sell, the lower the price should be.
• If you want to sell as fast as reasonably possible, I would
recommend listing at $270k (dropping $30k).
• Buyer’s online activity picks up around the beginning of
February so the aggressive price point will hopefully cause
potential buyers to act fast before someone else buys it.
• If the listing doesn’t sell in the next 3 months, I am sure that it
will sell in the next 6 months (spring market) at that price point.
31. To Renovate or Not to Renovate, that is
the question.
• The reason for renovations would be to increase total profit. We need
to assess whether it would truly increase profit and if it will help the
property sell faster.
• At the $300k price point, the home should at least have the kitchen
renovated at a cost of around $20-30k (varies). Expected sale price
would be $285-290k after renovations.
• As is, the home could sell for $260k and you would net around the
same amount as if you had done renovations.
• There are more buyers who can get preapproved for the lower list
price, so it should allow you to sell the property faster.
• Summary: Lower price = Faster sale. Renovations = higher price but
net a similar amount vs as-is. If you really want to sell fast, I would
drop the price. It also minimizes your cash outlay which reduces the
riskiness of return on investment.
