The Sales Comparison Grid (Part ll)
Hello luxury agents and welcome to Part II of our discussion on the Sales Comparison Grid. We talked about how make the adjustments using percentages rather than dollar amounts last week. This time we’re going to talk about how the sales comparison grid can calculate benchmarks.
As you know, I like benchmarks. Popular benchmarks include selling price per square foot of living area; per square foot of land area or per front foot of waterfront area – they are all fine. I like assessment ratios because buyers seem to put so much credence in the property tax assessment when they are evaluating a house to purchase. Therefore, the assessment ratio is something most buyers are pretty familiar with. Sellers relate to it also.
Start by calculating what typical homes are selling for as a function of their assessment. Are luxury homes in your market selling for 110% of assessment or 85 % of assessment? It varies from market to market.
In today’s video I’ll show you how these benchmarks are automatically calculated on my spreadsheets, and how you can use the ratios to be more effective in your business.
Once again, if you bought my book “Selling Luxury Homes”, don’t forget you get a free consultation with me via telephone, and until next time, make it a great week.
