Convincing sellers to NOT overprice their homes by making graphs

The market is overpriced. So if you are a real estate agent trying to communicate with sellers, how do you get someone who wants to test the market at $500K to realize a more reasonable price is $375K? There are surely many strategies, but today I want to mention the power of graphing neighborhood sales. I don’t mean to beat the dead horse by bringing this up again, but knowing how to graph will help you communicate effectively, stand out from other industry professionals, and seize your role as a market trend expert instead of letting Zillow have all the glory. Sure, you can show your client a graph of city or zip code trends by using Trendvision, but it’s hard to argue with neighborhood-specific data.

making graphs - image purchased by sacramento appraisal blog

A letterhead to give your sellers: Before we dig in, here is a letter I wrote for sellers about things to consider when pricing in this market. This letterhead is based on a post I wrote recently, but I tweaked a few things. See the image below and DOWNLOAD here (PDF). Feel free to email or use as you see fit. Obviously the letter does not address a specific property. If you need a letterhead for your specific property, let’s talk about some consulting.

letterhead

Excel Tutorial: I know, you don’t use Excel because it’s only for nerds. But let me break it down for you below so you can join the club. Previously I shared a tutorial on how to graph with Gnumeric, but I had a few requests for using Excel instead since that’s what most people already have on their computers.

land park two-bedroom graph example by sacramento appraisal blog

This graph shows the range of similar-sized neighborhood sales is between $300-375K for the most part (instead of $500K). This can be a very powerful visual, especially when you begin to show the sales at $375K have been remodeled.

A tutorial on how to show the market: I recommend watching the tutorial below and then pulling up some MLS data for a neighborhood you are working in so you can create a graph by following the steps I took. This is perfect for Sacramento MLS, but as long as you can export data from your MLS system, you should be okay too. You may need to pause my video several times or rewind at moments. Whenever we do something new, it takes a while to catch on. If you don’t have Microsoft Paint to paste the graph like I did, you can use a different photo editing program, or maybe use a snipping tool on your computer. Additionally, you can open up Paint and simply start a new file, and then paste your graph (as opposed to opening an existing photo like I did). Watch below (or here if it’s too small below).

Please let me know if you have any questions. I hope this was helpful. Perhaps this will spur on a new skill set for you that can make a difference in your business.

Questions: Was the tutorial helpful? Anything you need clarity on?

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How to make a graph using new and old MLS data

I wanted to show you how to make graphs by exporting current and historic MLS data. Sounds exciting, right? I used a screencast below to give a brief tutorial. I show some examples of graphs in the beginning of the video, but you can also click market trends to scroll through more.

Why does this matter? Knowing how to work with numbers is very powerful. Making graphs can help you understand the market more deeply and assist clients to see what you are seeing. Both agents and appraisers can visually show things like a decade of sales in a particular neighborhood, all sales of a certain size or bedroom count, or even compare multiple tiers of data in a neighborhood (as I show you in the second tutorial below). This can be very convincing to quickly illustrate value trends and even help establish a list price (plus it makes you look smart in the eyes of your clients). You may want to check out a beginner’s tutorial I did for making scatter graphs in MLS and download Gnumeric for free here.

Tea or Lunch: If you’re an agent and want to sit down in person, just buy me a tea or lunch and I’m glad to teach you how to do this.

Coventry Neighborhood Elk Grove

Tutorial on how to use new and old data in MLS (watch below or here):

Tutorial on how to use multiple segments of data: (view below or here – examples include REO vs Traditional Sales, 2-bed vs. 3-bed, model match sales vs. entire neighborhood, etc…)

How might making graphs be relevant for your business?

If you have any questions or Sacramento home appraisal or property tax appeal needs, let’s connect by phone 916-595-3735, email, Twitter, subscribe to posts by email (or RSS) or “like” my page on Facebook

How to make a multi-level graph in MLS

Are you a visual learner? I am. Today I want to show you how to export data from MLS to make a great visual presentation. This can come in very handy for real estate agents and appraisers when comparing different segments of data in a specific neighborhood, city or county. You might consider doing something like this to display a difference in bedroom count, price vs. square foot range, distressed vs. typical sales or even something like pool vs. no pool. In the video example below I show you how to plot Arms-length vs. REO vs. Short Sales in a neighborhood (like this graph in Elk Grove). I hope it’s easy to understand. Enjoy and let me know if you need any clarification. Happy graphing!!

If you have any questions, or real estate appraisal or property tax appeal needs in the Greater Sacramento Region, contact Lundquist Appraisal by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.