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Tuesday,June 3, 2014

CHAMBERSBURG SALES MEETING

06/03/2014

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Best of the Hotline

APPRAISAL CONTINGENCY

06/03/2014

James Goldsmith, Esq.Caldwell & Kearns

General Legal CounselPennsylvania Association of REALTORS®

www.PARJustListed.com

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In mortgage transactions, when working with the buyer, always check the Appraisal Contingency Addendum box in the Agreement of Sale

APPRAISAL CONTINGENCY

06/03/2014

X

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Always check the box next to ‘The Purchase Price’

APPRAISAL CONTINGENCY

06/03/2014

X

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Real life bad examples:

“Portion of roof to be replaced.”

SPECIAL CLAUSES

06/03/2014

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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

06/03/2014

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When in doubt, have someone else read your special clause.

SPECIAL CLAUSES

06/03/2014

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DO YOU KNOW YOUR MARKET?

06/03/2014

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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

06/03/2014

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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

06/03/2014

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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

06/03/2014

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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

06/03/2014

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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

06/03/2014

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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

06/03/2014

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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

06/03/2014

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• Click ‘rbi Market Stats’ in MRIS

• Multiple uses: Listing presentations Item of value for past clients Absorption analysis

06/03/2014

MRIS MARKET REPORTS

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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?06/03/2014

LISTING DILEMMA

FOR SALE

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WEAKNESSES OF A CMA

• Does not show inventory levels

• Does not show whether prices are rising or falling

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THE INTERACTION OF . . .

SUPPLY DEMAND

2006/03/2014

PRICING STRATEGIES

ABSORPTION RATE ANALYSIS

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ONLINE RESOURCE

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CLICK ‘LEARN CENTER’

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• Web based training• Virtual instructor training• Designations and certifications• Independent study

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PROGRAM GUIDE

2014

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• 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

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• 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

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It’s not that06/03/2014

ABSORPTION RATE FORMULA

difficult

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1. Closed Sales in 3 Months ÷ 3 Months = Monthly Absorption

2. Total Listings in MLS ÷ Monthly Absorption = Number of Months to Absorb Current Inventory

06/03/2014

ABSORPTION RATE FORMULA

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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 MARKETMore than 6 months

of inventory results in a downward pressure

on prices

SELLER’S MARKETLess than 6 months of inventory results in an

upward pressure on prices

BALANCED MARKET6 months of inventory

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FRANKLIN COUNTYABSORPTION ANALYSIS – APRIL 2014

0 - $49.9K $50K - $99.9K

$100K - $149.9K

$150K - $199.9K

$200K - $299.9K

$300K - $399.9K

$400K +0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

3.0

5.2

10.7

7.7

14.8

81.0

15.1

Mon

ths I

nven

tory

Price Range

Buyer’s MarketPrices are Decreasing

Seller’s MarketPrices are Increasing

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• Jeff Culler

• Bobbi Washabaugh

• Jason Rugh

APPLAUSE – APPLAUSE!!!

06/03/2014

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PROPERTY/NEEDS EXCHANGE

06/03/2014

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• 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

06/03/2014