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So the first thing Iím going to do, Iím going to take the listing. Iím going to take
the address. Iím going to take the address. Iím going to go into a general search. Going
to go to my map and put it in, put in Great Falls. Then find out where we are on the map,
okay? Then Iím going to extend it out, okay it again. Zoom out a little bit, going to
use my handy-dandy rectangle-radius device over here and grab these listings. Iím going
to focus on homes sold since, homes listed since, letís say, November. And weíll look
at homes between 1.3 million and 1.8 million.
Now that one has at least four baths. I really think we need a four or five bath to match
it and a four to six bedroom home to match it. Letís see what we get in that area, what
things are closing for, solds and other contract and the active. What we want to take into
account is the acreage as well so Iím going to be flip-flopping back and forth to compare
the house to this one.
All right, 27 listings to choose from. Iím going to go through, weed this out, pick them
down, but first thing I need to do is go reacquaint myself with the listing in question.
Letís see whatís these pictures are. Okay, this is definitely a high level home, Brazilian
cherry wood floors, gorgeous completely, elegant inside and stately, very classy. It shows
extremely well. Theyíve really done an excellent job presenting this house. Look at that kitchen,
really fancy lights etcetera. Letís see if we can get a better view of the front, nice.
And then letís head over to some of the other pictures, going afterwards to the rec room
All right [unintelligible][00:04:03] Öthis was a foreclosure. Iím sure it was in terrible
condition. Letís just click on the pictures real quick and confirm. Yeah, I mean look
at that mirrored thing. We donít want it. Move on to the next one.
Not nearly as classy on
the front end. A smaller lot, very big though. It boasts a chef kitchen so there must something
good about this house. Itís supposedly 8,000 square feet. Iím a little bit suspicious
of that though but letís see. Okay, you can see the backside. Itís completely a step
down in terms of how classy and elegant it is.
The inside of the house is really nice. It just isnít as elegant as the other one although
it has some great features but you can tell itís just a step down especially surrounding
the house on the outside. Itís not the same. Itís not nearly as elegant inside as either.
However, it closed for 1.5 million. Itís a reasonable comp to compare and priced backwards
from like towards.
This one on Miller Avenue, it closed for 1.5. It was a brand new house which is interesting
there. It also was listed 1.65 million. So I think itís a nice comp for us. Just want
to see since itís not you know, mostly empty with terrible photos of it. Itís sort of
hard to really take in how nice it was or wasnít, dark, swamped photos. So weíll definitely
keep this one as a comp.
Then Seneca Knoll. This one listed 1.799 and it closed 1.799. Brand new kitchen, mahogany
panel, den, over 300 grand in upgrades. So we definitely want to look at this one because
if itís that good, we can price backwards from this one that closed 1.8 million and
get a good idea whatís happening.
Okay, huge, pretty big lot, looks like they have a swimming pool back there as well. Interesting,
big kitchen. Oh itís a narrow kitchen. Itís a little bit dysfunctional. I wonder, I mean
itís got some neat things the kitchen, but it sure is different. Gosh, it doesnít seem
as nice to me as the home weíre trying to run numbers on.
What we want to check is make out a map where is it located in relation. Anyway, it closed
1.79 million. Thatís really interesting. I wouldnít have thought it would have closed
This one is two acres, under contract, Lake Windermere, lakeside, waterfront haven. Now
below comps for two irresistible acres. Okay. Getting a look at these pictures, go through
and see how it relates. Completely not as classy inside. You know, some big functional
rooms but itís not near the elegance. That closed for, well itís under contract for
six months. It was listed 1.35 million. Probably theyíre getting there somewhere around 1.3
million based on what Iíve seen lately. So weíll include this in our numbers.
Great Passage, this is also under contract. Listed 1.5 million, one acre, five and a half
baths. That extra bath, thatís quite pertinent. Letís look at these photos and see how it
measures up. Hmm, itís nice, big, open space, a lot of sunshine. Big, modern kitchen, wow.
Now that style is not for everyone but obviously a lot of money has gone into this thing. This
is a great house, very interesting. So not as finished as well either on that lower level,
just very open and plain. That sort of where it falls behind the other one. Letís say
1.5 million under contract. We can price up from there.
Well you get the ideaÖI had to weed through 27 listings to pick out the comps we would
use. Iíll spare you and move on to comparing our best comps.
All right, so we have our list here. We went from 27 listings. We narrowed them down to
12 comps and based on those, now we examine these more intensely. For these homes that
are in the upper price bracket, it takes a lot longer to figure out where youíre going
to come in with your initial offer price. Regular homes, you can usually run numbers
for them 30 minutes. These homes sometimes take an hour and a half to do. So Iím going
to take a couple of pieces of this and show them to you.
So 759 Miller closed for 1.5 million this year. It was new home, very classy inside.
Seneca Knolls under contract, closed for 1.8 million. Letís compare it to the one we have
and confirm we can go backwards from it. Its weakness is that kitchen, that funky, narrow
kitchen that does not seem to open up in a grand way. Yet it closed for 1.8 million.
I mean my initial impression is somewhat I would have pay for that but Seneca Knoll is
a special neighborhood in Great Falls. Homes do close higher there.
Lake Windermere, under contract 1.35 million. Great Passage, this one is under contract,
1.5 million. If I recall, we looked at these photos and we thought ours was, home weíre
looking at is much nicer than this. Now this had the modern flavor to it. Thatís right.
Really neat home, very modern, crisp and clean, not nearly as sort of stately inside. Its
weakness was, I have a feeling itís a smaller space down. Anyway, it is a good home. This
is a good comp. Itís listed 1.5 million. It was under contract right now.
Falls Pointe, 1.575, listed just the same price ours listed at. It closed at 1.575.
Now these photos are really good. It would be a great comp for us. It has a great backside.
It has some nice features to it. This is a great, we would use this in our [unintelligible][00:11:29]
1.7 million dollar home. Itís not worth that.
This one listed 1.65. It closed for 1.65. Smaller home. Get these photos, very plain
inside, not all that fancy but clean, crisp.
Okay, yeah our home is
a step up from this one yet it still closed 1.65 million, very interesting. Iím very
surprised. The one weíre looking at is priced 1.695. So itís interesting that our home
is a step up from this one yet this one closed 1.695.
At the same time, this one closed all the way down 1.575. Sort of conflicting messages
weíre seeing here. The initial impression thatís coming to me, I need to see them on
the map how close are these two to our listing for example.
What we want to do is one, get our comps together, get an idea on what itís really worth. Then
two, we want to pick the most strategic comps, put our case out there. Sometimes with like
video email, that way the listing agent can pass it directly on to the seller. So itís
like a one-on-one negotiating with me directly speaking to the seller and making my point
of why their home is not worth this but itís really worth this. Therefore, itís in their
interest to negotiate with us and come down and be realistic about it.
So our listings right here, this one here closed for 1.65 and this one here closed for
1.575. So we would focus on this listing here when we get back with them later and make
our initial offer price.
Then our home is much nicer than some of these other homes. I really think that the home
in question based on all these weíve been doing, this home will appraise easily for
1.65 million. My impression is that we would offer 1.5 million and try and make our case
to them that the economy has dealt dipping in the recession. The days on the market are
going up for Great Falls, real estate etcetera, and get them down into the, to come down under
1.6 million because it probably is 1.65 million. Thereís a good chance though they would come
under 1.6 million. They would get down into the 1.5ís. So we would offer them 1.5 million
and see what happens from there.
So just walking you through the process. Thatís how it works.