Sales

1. Tuesday,
June 3, 2014
CHAMBERSBURG
SALES MEETING
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2. Best of the Hotline
APPRAISAL CONTINGENCY
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James Goldsmith, Esq.
Caldwell & Kearns
General Legal Counsel
Pennsylvania Association of REALTORS®
www.PARJustListed.com

3. In mortgage transactions, when working with the buyer, always
check the Appraisal Contingency Addendum box in the
Agreement of Sale
APPRAISAL CONTINGENCY
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X

4. Always check the box next to ‘The Purchase Price’
APPRAISAL CONTINGENCY
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X

5. Real life bad examples:
“Portion of roof to be replaced.”
SPECIAL CLAUSES
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6. Does your special clause answer
the four questions:
• Who is to perform?
• What is to be done?
• Who is to pay?
• Time frame to perform?
SPECIAL CLAUSES
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7. When in doubt, have someone else read your special clause.
SPECIAL CLAUSES
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8. DO YOU KNOW YOUR MARKET?
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9. 1. In the month of April ‘14, what percentage of homes were
purchased with cash in Franklin County?
A. 7%
B. 9%
C. 13%
D. 23%
MARKET QUIZ
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10. 2. In the month of April ‘14, what was the average length of time
a property took to go under contract in Franklin County?
A. 62 days
B. 92 days
C. 132 days
D. 152 days
MARKET QUIZ
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11. 3. What was the median SOLD price in Franklin County in April
‘14?
A. $150,000
B. $140,000
C. $130,000
D. $120,000
MARKET QUIZ
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12. 4. How does the listing inventory of homes compare from
April ‘13 to April ‘14 in Franklin County?
A. +17%
B. +7%
C. -7%
D. -17%
MARKET QUIZ
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13. 5. How does the number of settlements compare year-to-date
from 2013 to 2014 in Franklin County?
A. -13.0%
B. -1.30%
C. +1.30%
D. +13.0%
MARKET QUIZ
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14. 6. What percentage of homes sell in Franklin County within 180
days of being listed?
A. 53%
B. 63%
C. 73%
D. 83%
MARKET QUIZ
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15. TIE BREAKER: What was the dollar volume (to the nearest $1,000) of
residential real estate SOLD in Franklin County in April ’14?
$19,236,000
MARKET QUIZ
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16. • Click ‘rbi Market Stats’ in MRIS
• Multiple uses:
 Listing presentations
 Item of value for past clients
 Absorption analysis
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MRIS MARKET REPORTS

17. Ninety days ago you took a listing in
_________ Township for $_______ which
was within 5% of the value indicated in your
CMA. You’ve completed all the marketing
activities that a prudent real estate agent
would perform but you’ve only had two
showings on the property and no offers.
Your seller is growing a little frustrated.
What do you do?
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LISTING DILEMMA
FOR SALE

18. 06/03/2014 18
WEAKNESSES OF A CMA
• Does not show inventory levels
• Does not show whether prices are rising or falling

19. 06/03/2014 19
THE INTERACTION OF . . .

20. 06/03/2014 20
PRICING STRATEGIES
ABSORPTION RATE ANALYSIS

21. 06/03/2014 21
ONLINE RESOURCE

22. 06/03/2014 22
CLICK ‘LEARN CENTER’

23. • Web based training
• Virtual instructor training
• Designations and certifications
• Independent study
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PROGRAM GUIDE
2014

24. • Inventory – Total number of homes
for sale within a defined market
segment
• Absorption Rate – Rate at which
homes will sell within a given period
of time
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DEFINITIONS

25. • The number of houses sold and closed in
a particular time period – three months is
preferred
• How many listings currently in the MLS
• Do not count under contract or pending –
only settled
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CONSIDERATIONS

26. It’s not that
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ABSORPTION RATE FORMULA
difficult

27. 1. Closed Sales in 3 Months ÷ 3 Months = Monthly Absorption
1. Total Listings in MLS ÷ Monthly Absorption = Number of
Months to Absorb Current Inventory
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ABSORPTION RATE FORMULA

28. A thorough examination of the market determines that there
have been 300 closed sales in the last 3 month. At the present
time, there are 600 residential homes on the market. What is the
absorption rate?
1. 300 sales ÷ 3 months = 100 homes selling per month
2. 600 homes in inventory ÷ 100 homes selling per month =
6 months of inventory on the market
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ABSORPTION RATE EXAMPLE

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ABSORPTION RATE SUMMARY
BUYER’S MARKET
More than 6 months
of inventory results in
a downward pressure
on prices
SELLER’S MARKET
Less than 6 months of
inventory results in an
upward pressure on
prices
BALANCED MARKET
6 months of inventory

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FRANKLIN COUNTY
ABSORPTION ANALYSIS – APRIL 2014
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
0 - $49.9K $50K -
$99.9K
$100K -
$149.9K
$150K -
$199.9K
$200K -
$299.9K
$300K -
$399.9K
$400K +
3.0
5.2
10.7
7.7
14.8
81.0
15.1
MonthsInventory
Price Range
Buyer’s Market
Prices are Decreasing
Seller’s Market
Prices are Increasing

31. • Jeff Culler
• Bobbi Washabaugh
• Jason Rugh
APPLAUSE – APPLAUSE!!!
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32. PROPERTY/NEEDS EXCHANGE
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33. • Tomorrow morning – June 4th
• Breakfast will be served from 8:30-10:00
AM by Chef Tom
• Pick-up your Berkshire Hathaway
HomeServices goodie bag
 Business cards
 Name badge
 Name riders
 Assorted ‘stuff’
BH KICK-OFF BREAKFAST
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