Here's how to actually compute that.
The "Five-Minute" Quick Sale Price Appraisal
The way to find market price (and thus quick sale price) is to follow these steps:
1. Input the property zip code into Realtor.com and see what the lowest-priced properties are in that market right now.
2. Plan on selling for even less than the lowest-priced property for an accurate quick sale price.
Notes (pretty simple, huh?):
- You'll typically see a lot of foreclosures in this group.
- 90% of the properties you get will be in foreclosure-like condition (or worse)
- Try to get $5,000 - $10,000 under the lowest selling price of a similar property on the market now.
Why is the Quick Sale Price So Low?
Remember, all properties you see online are sitting there unsold - they're available to anyone who wants to come along and buy them. You're looking for someone to take action NOW on your property.
Therefore you have to make your property more attractive to get the quick sale. The only practical way to make your property more attractive, is to offer it cheaper than everyone else - and don't even think about sprucing it up (sometimes it pays to have junk hauled out though).
Once you've arrived at a quick sale price that would make your property the most attractive in its class on the MLS, you should double-check to make sure there have been sales to support this price in the recent past. More importantly, you do NOT want to see a lot of sales for much less than your quick sale price over the last year.
Confirm the Quick Sale Price with FACTS
To confirm, go to Zillow.com and look at sold comps in the neighborhood (NOT assessed values or the “Zestimate” – look at actual closed sales in the area of the property). If you see several properties near yours that have sold for less than what you've figured, lower your estimate to be competitive with THOSE.
Remember - once you put a property on the market, the only thing that really matters is the "competition" from other properties in your price range. The reason we double check is because sometimes for a brief period, all the lowest-priced properties sell and are not replaced with similar properties for a while.
This could lead to your quick sale price figure being too high - and not resulting in a quick sale.
For example, say that over the course of the year, there are usually 3-4 properties like yours on the MLS for $20,000 - $28,000. There are few foreclosures for sale at any given time.
Above those prices, you get into occupied homes - and the prices start to rise sharply to $40,000, $50,000 and up to a retail value of $100,000.
Sometimes, all of those lowest price fixers may sell in a short window of time, and not be replaced by more properties in that $20,000 - $28,000 price range. So when you do your Realtor.com check, you see properties starting at $40,000 only and base your quick sale price off that.
By doing comps, you'll see a lot of sales over the course of the year in the $20-$30k range, and know that's where you need your quick sale price to be competitive.
Exceptions / Adjustments to Quick Sale Price
While most properties we encounter DeedGrabbing are fixers, you may occasionally get a deal going on a house that’s DEFINITELY a cut above the lower cost foreclosures. Determining a property quick sale price here is a lot trickier. You can cautiously compare the house against higher-priced similar houses, and price your house well below those.
In this case, you'll probably need to price the property more than $10k below comps to quicken your sale. In the retail world, buyers take action based on the attractiveness of the house itself as much as the price - houses become less of a "commodity" that you can reliably price.
Above all, NEVER blindly go with a Realtor's selling price estimate. These are rarely ever true quick sale price figures.
Realtors are used to determining property selling price for people who want every last cent out of their property, and for whom a quick sale isn't so essential.