From a client’s point of view, one of the most important things that an agent brings to the table is the ability to properly and accurately price a home for sale. This video shows your agents how easy RPR is to use and how effective it is at estimating and setting home values. The Realtor Valuation Model® or RVM®, is a breeze to use and gives agents the option to adjust the value by inputting home condition and home improvement factors. They’ll also see how to choose comps and create a CMA, all with just a few simple clicks.
Pricing a Property
In this video we’ll walk you through pricing a property on RPR – from using the RVM, RPR’s automated valuation model, to refining the value of a property, choosing comps and creating a CMA.
Let’s get started.
From RPR’s homepage, search for your subject property, hit enter and your Property Details page will appear. One of the first things you’ll notice is the Realtor Valuation Model or RVM. The RVM estimates displayed are the product of multiple Automated Valuation Models, each using proprietary algorithms and arriving at its own estimate. The RVM can be a great starting point for pricing discussions with clients. RPR’s RVM goes beyond traditional automated values by incorporating listing and sales data into the equation.
The RVM is accompanied by a 5-star Confidence Score. A 5 indicates that different automated valuation models yield similar estimates for this property.
Now let’s move on to refine value and comp analysis — tools designed to further determine price.
Every property details page has a refine tool. Start by reviewing the basic facts of the subject property. If one of the property characteristics needs to be corrected, such as Living Area, Bedrooms, Full Baths or Year Built, enter the updated value and the property’s valuation will adjust.
Next, refine the property’s value for home upgrades. From the dropdown, choose the type of home improvement, enter the completion date and cost. Upgrade values are calculated using the date of the improvement and pricing information from Hanley Wood that has been refactored by RPR at a local level.
Here, subtract the cost of needed improvements from the refined value of a home. It is useful when helping homeowners to consider the monetary effect necessary repairs will have on the property’s value.
Now use the sliders to adjust value based on local market conditions and how the property relates to comparable properties like home exterior and interior, lot size, view and privacy.
At the top of the refined value page, see how these refinements change the estimated value.
Next up to pricing your property, you’ll want to perform a CMA. Do this by visiting the Comp Analysis tab.
RPR’s comp analysis offers a step-by-step wizard that walks you through the process of validating basic facts about a subject property, selecting comparable properties, and then adjusting those comps to yield a price and price range for the home.
Let’s create a comp analysis.
1)To begin, press the blue “Confirm Home Facts” button on the Comp Analysis page. This is where you’ll verify or modify the property’s basic characteristics such as living area and number of rooms. The facts you change are highlighted in blue. Once you’ve made your changes, select “Confirm Facts & Close.” A checkmark and confirmation will appear where you’ve completed the first step.
2) Next, choose “Find Comps.” If you already have a specific property in mind, enter its street address here.
Otherwise use the search criteria shown to the left of the map. This criteria will auto-populate based upon the subject property characteristics, but can easily be changed to meet your needs. Narrow your search based on sales timeframe, property status (active listing, off-market, recently sold), distressed status, beds and baths or living area, and many other parameters to really fine-tune your search.
To add geographic search restrictions, use the search tools directly above the map, such as custom areas or geographic boundary overlays like ZIP or School District.
After choosing Search, the results will display below the map. Comps returned in this search that were also used in the AVM or RVM® calculation are flagged with a blue star, but are not weighted differently than any other comparable property.
Now check each of the properties you want to include in your analysis. As you select each comparable, it will be added to the sidebar list of selected comps.
Once you are satisfied with your comp selection, choose “Update Valuation and Close.”
The average price of your comps will appear at Step 2, with the ability to edit if you want to make any changes to your comp selection.
3) Next we will adjust the comps in comparison to the subject property. Here the comps you selected are presented in a grid. Specify which order you’d like them to appear in your reports. Choose from the dropdown to change the order, or click “Remove” to remove the property from your comps list.
Use the sliders to rate each comp relative to your subject property. This adjusts the weighting of the comp in the analysis. Decide whether the property is worse, the same, or better than your subject property. Your changes are previewed on this page, so you can see their effect before completing them.
When finished, select “Update Valuation and Close.”
Your adjustments will now show on Step 3, with the ability to edit the result, if you choose.
4) Your final step before generating a Seller’s Report is to review your result. To, override the valuation result, enter your own value or round the suggested price up or down. Also, choose to keep the value range, or edit/remove altogether. If you bypass this step, the comp result from step three will appear in your report. The result will also appear on the Summary tab of the Property Details page. If you complete step four, the new value and range will appear in those locations.
Now you’re ready to generate the Seller’s Report. The Report reviews the subject property, shows the condition of the local market, presents comparable properties for side-by-side comparison, includes a pricing strategy and a worksheet for estimated seller proceeds.
Select “Create Report” to be directed to the Reports Generation page.
Choose “More Details” to identify which elements to include or omit in the report.
The Seller’s report is a very comprehensive report that can span over 80 pages. Omit any sections you don’t think your client would be interested in at this time to make the report more digestible.
Also choose whether to suppress the estimated value for the subject property and/or the estimated value for the comps.
On the right side of the page, choose which cover page elements to include.
Personalize the report if you intend to send it directly to your client.
Choose your delivery method and select “Run Report.”
Now you have a perfectly priced property with the best deliverable to send to your client!
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Realtors Property Resource® (RPR®) delivers on-the-go access to an all-encompassing real estate platform, available exclusively to REALTORS®, and offered at no additional cost. Easily accessed through desktop, iOS and Android devices.