How it Works
About Price Plays™ : Art & Science of Influencing Home Price
Price Plays has codified real estate negotiation, into 3 Stages of bite-sized strategies.
How it Works
Price Play scenario definitions
Below is a sample Price Play scenario – a snapshot of the average likelihood if you run the play.
How we create Price Plays
Your Price Plays inform you of opportunities throughout the 3 stages of your home’s negotiation for sale.
3 negotiating stages of every transaction
We create a library of Price Plays for you and for your agent.
We begin from the domain of experts with strategies that have succeeded and failed.
You will also receive safeguard tips against many unscrupulous tactics and fraudulent practices.
Besides the hand-to-hand negotiating combat you may expect, we’ve gone a lot further.
Science has made incredible strides into the inner workings of how we make decisions.
We love science because it gives us principles from which new opportunities are born.
So we’ve included strategies that apply the science and psychology of negotiating.
That’s Price Plays – art and science.
See the key factors that influence price.
Your agent’s profile: 6 qualities that influence your home’s price
Strategically choose your Agent. Your Agent’s Profile (below) affects all stages. Use HomeToHome’s Agent AQ Search to choose your agent. Review their Agent Service Plan and use your Guide’s checklist to evaluate.
- Client Preparation: Educating client for each stage.
- Market Alignment: Aligning client’s expectations accurately to inventory, pricing, timing, and opportunity. Strategically prepare clients to win.
- Property/Purchaser Acquisition: Identifying best properties/buyers for client’s needs and executing purchase agreements.
- Negotiation: Knowing when, what, and to what degree to negotiate in client’s favor. Utilizing every skill in the agent’s arsenal to maximize value for client.
- Vendor Management: Coordinating inspectors, appraisers, lenders, contractors, etc. Developing strong list of resources for clients.
- Execution: Overall ability to orchestrate all elements of a purchase agreement to protect client’s interests.
6 key factors that effect a home’s value
Home Leverage Profile reflects property characteristics, the seller’s timing & motivation, and the market. Use HomeToHome’s MarketPrice and RateThisHome to maximize Home Leverage.
- Home condition : Size, location, age, structural integrity, upgrades, staging, curb appeal
- Market Conditions : Comparables: active, pending, recently sold. Local economy
- Marketing : Price strategy, media creation, target buyer type, advertising campaigns
- Market Timing/Buyer Pool : Maximize demand of qualified buyers
- Seller Position : Timing, motivation, & equity position
- Title condition : Clean, encumbered, restrictions, CC&R’s, liens, etc.
Your value profile: 6 key factors that effect your home’s price
The 6 factors of Buyer or Seller “readiness” qualifies the client’s option to act decisively and favorably. A strong buyer is more attractive to a seller. They’re more likely to close the sale on the home. Similarly, a strong seller is already prepared and aligned with the market. Use your Lender’s Finance Plan and Profile, LoanSense and CashToClose tools to sharpen your negotiating position.
- Representing Agent: Expertise, competence and integrity
- Home: Expectations, location, condition, and list price
- Finances: Loan(s), cash position, equity, tax considerations
- Motivation: Readiness and desire to execute
- Execution: Client’s ability to cooperate with trust and honesty
- Credit: Client’s understanding of significance, qualification process, and true cost of credit
Home’s Price Profile: 4 key factors that determine a home’s value
After you have optimized your Home’s Leverage Profile, your Agent influences the Home’s Price Profile in your favor. The Home’s Price Profile is determined during negotiation between the Buyer & Seller. The Price Profile is described by these 4 factors:
- The List Price is the advertised price of a home. It should not be confused with a Market Price or Sold Price.
- The Home’s Market Price is the expected sales price of what a ready, willing and able buyer will pay.
- The Home’s Appraised Value, conducted by an independent professional on the Lender’s behalf, may affect the buyer’s ability to purchase.
- The Home’s Sold Price is the negotiated price that the seller is willing to accept and a buyer will pay.
Use HomeToHome’s HomeScene tool to generate different Term Sheet scenarios when negotiating for your most favorable Sold Price.