Unit 1: Listing Presentation

Question 1

John is selling his brick and frame, 1500 sq foot ranch style home. He has set up listing appointments with 3 real estate brokers. He is trying to sell his home for the 4th time in 3 years. Previous list prices of his house were $315,000 (180 days on market), $300,000 (90 days on market), and $250,000 (90 days on market). There are currently 6 listings for ranch style homes between $175,000 and $235,000. There have been no listings in this area as high as $315,000.There have been five 2,000 sq foot 2-story dwellings listed for $285,000-299,000 during the past 3 years. The highest sale of a ranch style home in the past 6 months is $215,000 (125 days on market). The highest sale of a 2-story home was $265,000 (137 days on market). Anita looks at the CMA and makes some calculations. She discovers that $200,000 will not cover commission of 5% or closing costs for the seller. She recommends listing the home for $215,500 which will cover all costs. This will be tough, as the highest sale of a ranch in this town is $215,000, and the other actives are in better condition than John’s home.