{"id":3949,"date":"2008-08-18T11:00:49","date_gmt":"2008-08-18T18:00:49","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=3949"},"modified":"2008-08-18T10:58:26","modified_gmt":"2008-08-18T17:58:26","slug":"increase-your-value-by-decreasing-the-value-of-comps","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3949\/increase-your-value-by-decreasing-the-value-of-comps\/","title":{"rendered":"It Takes More Than Comps to Beat the Competition"},"content":{"rendered":"

As real estate agents we are always looking for ways to help our clients make sound decisions.\u00a0 If we find a way of doing so that also differentiates us from the market – all the better.\u00a0 In the next two posts I am going to share a new way to value property that not only\u00a0gives clients a vastly superior\u00a0ability\u00a0to make home-buying decisions, but should decrease defaults and foreclosures substantially too.\u00a0\u00a0Do you think that will make me a better agent?\u00a0 More valuable?\u00a0\u00a0Here’s one more way to differentiate yourself in the marketplace of real estate agents.\u00a0 (Warning: this post and the next involves some arcane securities concepts and\u00a0new ideas that will require even more of your time and effort.\u00a0 If this does not interest you, stop reading now.\u00a0 Pick up a newspaper.\u00a0 Enjoy the classifieds.\u00a0 Maybe polish up the old resume…)<\/em><\/p>\n

CMAs<\/strong>
\nIn a recent article by Greg Swann discussing the woes of the real estate market<\/a>, he mentioned homes selling for less than they would cost to build.\u00a0 He referred to homes priced “below their fundamental value.”\u00a0 Over the past six months or so I have been discussing with Brian Brady different ways to value a property.\u00a0 Having both come out of the securities field (I was once a securities broker and “enjoyed” some pretty exciting… read: stressful… years as an options trader on the exchange floor), the discussion revolved around how property would be valued if it were a security investment.\u00a0 First, Comparative Market Analysis or CMAs would be used only as a qualifier or a secondary validation.\u00a0 They are circularly self-serving and relationally compromised.\u00a0 Instead of “comps”, let’s wow our clients, protect them and increase our value as agents at the same time.<\/p>\n

A New Way to Value<\/strong>
\nRemember I warned you that this would involve extra work.\u00a0 That is because there should be four<\/strong> values to any property and they should all be calculated before we advise our clients.\u00a0 Here are the four values in ascending order:<\/p>\n

    \n
  1. BREAK-UP VALUE\u00a0– this is the value of the land itself along with any profits Read more<\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    As real estate agents we are always looking for ways to help our clients make sound decisions.\u00a0 If we find a way of doing so that also differentiates us from the market – all the better.\u00a0 In the next two posts I am going to share a new way to value property that not only\u00a0gives […]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-3949","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":789,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/789\/maybe-we-need-more-salaried-agents\/","url_meta":{"origin":3949,"position":0},"title":"Maybe We Need More Salaried Agents","author":"Doug Quance","date":"December 21, 2006","format":false,"excerpt":"I've been running some stats on advertising, Google rankings and agent performance over the last couple of days. One of the top agents in Atlanta has not had a selling-side transaction all year. Very unusual for this agent. Another top agent - who ranks very high in Google and has\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3689,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3689\/the-new-real-estate-model-part-3-patrick-dunne-purcell-a-real-estate-firm\/","url_meta":{"origin":3949,"position":1},"title":"The New Real Estate Model – Part 3.2: Patrick, Dunne & Purcell, A Real Estate Firm","author":"Sean Purcell","date":"August 4, 2008","format":false,"excerpt":"A Real Estate Firm based on the legal model could have many looks, as do actual law firms.\u00a0 But for a starting point I am going to lay out an achievable structure that will accommodate the greatest majority of agents.\u00a0 The firm would consist of three distinct levels as well\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1871,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1871\/why-supplanting-the-national-association-of-realtors-can-work-where-other-reform-initiatives-have-failed\/","url_meta":{"origin":3949,"position":2},"title":"Why supplanting the National Association of Realtors can work where other reform initiatives have failed","author":"Greg Swann","date":"August 31, 2007","format":false,"excerpt":"I call it the Law of Somebody's Dinner. Free market solutions to problems tend to work because entrepreneurs or investors won't get to eat if they don't. Government solutions tend not to work because government employees get paid the same -- or even more -- even if nothing works as\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":258,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/258\/sleaze-versus-sleaze-we-didnt-get-this-awful-reputation-by-accident\/","url_meta":{"origin":3949,"position":3},"title":"Sleaze versus sleaze: We didn’t get this awful reputation by accident . . .","author":"Greg Swann","date":"August 28, 2006","format":false,"excerpt":"Give a glance to these excerpts from this article in today's Arizona Republic. There will be a quiz at the end. Sleaze:Home builders are spending big bucks and dishing out heaping helpings of hospitality during what has become the summer of love in the Phoenix new-home market. The objects of\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1592,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1592\/shackpricescom-a-tear-down-innovative-map-search-portal-reconstructed-as-estatelycom\/","url_meta":{"origin":3949,"position":4},"title":"ShackPrices.com a tear-down? Innovative map-search portal reconstructed as Estately.com","author":"Greg Swann","date":"June 28, 2007","format":false,"excerpt":"The most-innovative little map-search in Seattle, ShackPrices.com, today relaunches as Estately.com, a name perhaps more fitting for a town where you can still get a decent fixer for less than a million dollars. The site is also launching its monetization model with this release: A fee-based referral system for users\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":459,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/459\/blogoff-post-82-weblog-review-the-phoenix-real-estate-guy\/","url_meta":{"origin":3949,"position":5},"title":"Blogoff Post #82: Weblog Review: The Phoenix Real Estate Guy . . .","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"Hey, wait. I'm the Phoenix real estate guy. Jay Thompson is an East Valley Realtor who publishes The Phoenix Real Estate Guy weblog. All gussied up in a brand new weblog template, this blog is fun reading. Well-researched, deeply-linked and yet still great fun to read. 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