The Art and Science of The Deal!

[Timothy Woolery]

As a Real Estate Agent it's important to understand the Art and the Science of a deal.  You can buy and create the best marketing, but if you don't understand the art or the science of the deal you will not get the results that your clients deserve.  

It starts off with the Science of the listing price, too high and you will not get much interest, too low and your clients may not get an offer at or above market value.  Market value is not always easy to find, depending on the area and type of home.  

The Art is marketing and negotiation is huge!  

Deal Deep Dive

I met a client in an area where there was very few townhomes, and the area was a sought after and close commute to Minneapolis, MN. I sought out a few sources and did my homework, and due to the demand and developing a very strong Comparative Market Analysis (CMA) I listed for $219. I used RPR and Homesnap, as well as had a second look by a veteran agent. When you list a property there is a lot to get done and a lot of timelines that need to be met. I strongly suggest having a checklist and use the coming soon to prepare your listing for going active.

After hosting several open houses, I was getting mixed reviews on price, I was about to lower it at day 20 of being on the market when offers started coming in.  One family came to 5 open houses and almost had tears in there eyes on how badly they wanted the property. Hint to buyers agents- don't let your clients show that big of a tell at an open house, because the "we have lots of other properties and this one isn't really one they're interested in," doesn't work when their entire family has came in 5 times to look at the home.

I received multiple offers and one came in at $210,000 and I advised my client that we can get more, shortly after we received a counter offer of $215,000. We listed in a "Sellers Market" and that area moved into a "Buyers Market" also the property had very little upgrades and so the market value was $210-$215. 

I was nervous for the appraisal after seeing some changes in the market and the fact that a lot of work needed to be done, I made sure to put together a nice packet and show how I arrived at the price I did. It appraised for $215 and it sold in 60 days, with an FHA loan!

Everytime I listen to the biggerpockets podcast, I always ask what is the art and science that is being used to help investors get the deals and achieve the level of success that they have.

What is the Art and Science of your deals as an investor or an agent?