hey what's up guys, I'm a 80 year old man.
gonna teach about real estate today so what were gonna talk about is
how to calculate your list price. I'm gonna expoint to you exactly why we do what we
do and how everything goes down
I'm gonna show you how to grow your business
These are the things that today's market, you're gonna love what we did in here
alright, were gonna start making some money, that's how we do it
Hey what's up guys john cochran here in today is system Saturday day that I
you a system that I use my business and you can rip off duplicate using your own
local market now
on today system Saturday what we're gonna talk about is how to calculate your listing
price
whenever you're getting ready to sell a particular property now guys
whether you are a
real estate investor or just a a realtor going to be
listing a property up onto the market this is the most crucial part in my
opinion
of actually getting a property to sell is coming up with that correct
price a year and that the public will buy that and is very very simple whenever you can
really break it down
think guys I will tell you this the price that you bring into the market
to
it is should be the price that should selling for so don't try any of this
you know hey if if I if the comps and everything it's
its I'll I'll probably end up getting 130 out of it was listed at 140
or 150 and just let the buyer take me down on that guys
it does not work we list all of our properties
for exactly what we get for every single one of them now the goal
on this is to get them into multiple offers situation and get more for that
however but I'm just telling you right now that we list our properties
for exactly what we want and we don't pat it up up we don't do any that stuff
we list for exactly what we want but how do you calculate this
this listing price to come up with that magic
figure how do you do that in all comes down to the very first thing you
gonna do
and you got a full comparables around your property
now when you pull comps or comparables
um.. you do this very very simply
you want to go anywhere between a quarter mile to a half of a mile
around your subject property in a radius search
particularly you wanna go a quarter mile around
your subject property you're also when you're pulling comps find out what your
value is you're looking for all these properties around yours
that's sold that's sold with then
the past 6 months now why that why do I want
sold properties within the past six months guy's that is the most
accurate way to literally find the value of your property
and you're going on find the value an actor in value over property
if you search a mile around your property you know any go back two years
market changes so much
so you need to be looking for other properties that sold
within six months of your
list date in that the properties or a quarter mile around your subject
property that have the similar bedrooms baths and square foot
of the property that you're getting ready list this
is huge now once you find all the comps
once you find all of these comparables and you find out you know
there's you know exact amount of properties you know and that's another thing is
that you wanna have anywhere between at least 2-3 sold comps if it
doesn't have two to three sold comps on it
guys don't even you shouldn't even bought a property but you have to have
so comparable to go by
now when you have the sold comparables
and you do the search the searches always gonna come straight from the MLS
doesn't come from Zillow it doesn't come from trulia doesn't come from realtor.com
it doesn't come from john cochran.com it comes straight from the MLS
because that's gonna be the most accurate data holiness into the MLS
will give you a great idea
of what other properties a a quarter mile away from your subject property
are actually selling for, its gonna tell you those numbers and how
how long days on market, now coming up in calculating your list price, when
you're gonna be selling
you need that information but let's just really done this down for you
now all you have to do is you just need to identify what
retail would be
on your particular property that you're selling if
if was already fixed up if it fix up to the nines what would retail
be that's the magic number you gotta find out what retail would be so
if you can actually you look at all these comparables
and you come up with a retail figure
let's say say one hundred thousand dollars and maybe you're gonna be
wholesaling this property of
but retailers is one hundred thousand dollars so you're gonna be looking for
your target buyer is gonna be real estate investor
so when they go that fix up property if they sell that property
they it's already fixed up they're going to rate a lot for one hundred thousand dollars right
so if your extra strategy is to wholesale this property you take the retail
figure x .5
= your
so in this case it's just 50 percent in this case
if you identify retailing you're gonna be wholesaling these deals of
if you identify retail at one hundred thousand dollars
you're gonna be wholesaling these properties up or listing
this property for fifty thousand
dollars which obviously means you have to buy a way below
or below this fifty thousand dollars in order to create a spread
and that deal and this will give your wholesaler you know your
other real estate investor it will give them enough skin in the game
to where they can make money on the deal probably somewhere around this
your selling for fifty thousand let's just say you bought it for 45 your selling
for fifty thousand you're gonna make five thousand dollars a wholesale is
gonna put
or the investors gonna put ah you know twenty twenty five thousand dollars in
this thing so they got seven grant $72,000 wrapped up
in this
they're gonna sell for 100 they can make $25,000 on that all
day
that's the formula .5 take retail
x .5
equals your list price that if you're going to wholesale the deal of
now if you're going to prehab that deal
the formula is very very similar you gotta start with your comps
you have to start with your comps go quarter mile a way look for the sold
properties within six months you need 2-3 comps
and they're coming from the MLS say you did same exact process you have to
identify
their retail value first, okay
so if you're gonna take a prehab this deal your gonna make this property rent
already a free
not everything's gonna me knew when it but it's going to me pretty nice
you're looking for an average buyer not a buyer to get emotional about what
an average buyer somebody that's actually looking for a little bit of a deal
something a little bit of of that retail back the
the formula is very very simply you a take retail value
so you a take the retail value and you times at
by .1 which is 10 percent
equals your list price very very simple so
if you taking you identify that your retail value on a prehab is gonna
be $100,000
so got one hundred thousand dollars and you take 10% off on that
that means that your last price is going to be ninety
thousand dollars okay so that's a deal that's the deal it's ten thousand dollars
of
a retail however when we calculate our list price
we will never put anything up onto the market for ninety thousand dollars
never
okay so in this case we would put that right up onto the market for
$89,900 we always we always always always
will round down or something because 89.900
sounds it's not but it sounds a lot cheaper
$90,000 very very simple now
if you have a deal that you just rehab this thing I mean this thing is
awesome you put all the new doors into the new group the new Windows you put
everything inside the trend the Tile the carpet inside the floor
everything they kit everything inside this thing as new
and you
rehab this deal you go through the same exact process you
could go when you pull your comps a quarter a mile away from the subject property
within six months from the MLS in 2-3 sold comps
you take the retail value that's exactly what you list it
for so retail value equals
your list price, okay very very simple so on the same exact situation
if you getting your rehab this property
you take the retail value let's just say that it is $100,000
you're gonna listing that property at 100k
but where where where Jon list it 99,900 because
99,900 sounds way
cheaper now let me just cover this for you real quick so
why did ah why do we not prices why do we not pad these is like what I said so
at the very beginning in this video I shared with you
you know our list prices are list price so I why did I not say
you know what on this win rehab did that's nice
what prices thing at 109,900, 109,900 because
I'm willing to take 99,000 for but let just say price in a 109,900
not not not the market super super hot guy's a lot of people do that but let me
tell you
behind the scenes on what happens of that and what buyers actually do
so if you take this property
and you listed at 109,900 knowing that you want the 99.900
figure for that house so the hundred thousand dollars for that house your
mind just says will just let them
come on and take it down of a list price
okay that's where your mind things however what you don't know
and what you actually do when you do that is you missed so many different
buyers
and you you literally just chop them out the equation so
if a buyer is approved
and their approved up to one hundred thousand dollars
there never gonna know about this price because they're not gonna be looking
at properties for a 109,900 there a proof for $100,000
that's why we do it that way is because you know if if a buyer right here if
they're approved
to 90,000 if they approved 100,000 they never know about that thing
so that's why we don't
had any of those in our list price our list price is exactly what we want for
me that's the formula
point a retail x.5 is your list price
ah retail x.1 or 10 percent of
is your prehabing price and retail value is
you're list price whenever you rehab your property so guy's
like us on Facebook subscribe to our YouTube channel comment below
let me know what you think of these formula I don't know meyo or seventy
percent or any that Jaz
we don't know any of that stuff we we just make a simple math that it works
so comment on this video below, and I'll see you on the next system Saturday.