So thank you everybody for joining. Another Power call wednesday morning we’re plowing through the week and I hope everyone’s focused, laser focused, end of the month, getting the deals across, because again, the way you finish the month will dictate the tiers where we are next week.
So that’s going to be an exciting, exciting conversation. So wanted to start off by thanking everybody for their attendance. I think yesterday in the email summary that I sent around, we had 87% of the agents join, which is a huge number.
So thank you for joining, thank you for your attention. I hope you’re finding these topics beneficial. Thank you for the people who are sending me messages to me and thanking me for the training.
I appreciate it. Sorry I haven’t been able to respond to you all, but just super busy at the moment. So let’s jump into today’s topic.
This is a little bit more advanced today, which I hope everybody’s going to enjoy. But the past few sessions we’ve covered kind of some basic topics when it comes to working with owners, in my opinion, relatively simple things. We’ve outlined it’s our role as agents to actively engage owners and that we need to make this part of our daily routine, especially when we don’t have buyers, right? We don’t treat owners as door openers and only call them when we have clients for them.
We’re making it part of our daily routine. We covered the important questions to ask when qualifying sellers, and we covered the types of profiles to look for that need our help. So as I said today, we’re going to step it up a bit and talk about the framework for valuing properties.
And this in the real estate industry is referred to as a Comparative Market analysis, or the CMA, which you see in front of me. And this is the framework that we as agents use to determine the market value of a property. Now, that’s probably a conversation that you don’t hear a lot of people talk about in Thailand because it’s very difficult to figure out the market value.
But I’m going to introduce to you a huge competitive advantage that is going to help us work more intelligently with all of our clients. So stay tuned for that. So at the end of the day, the right price is the single most important factor for selling or renting a property.
I think everybody will agree with me, and it’s what our clients come to us for. We’re the experts. And this is one of our main roles as agents, to be the source of information for our clients so that they can make more informed decisions.
So every day we’re going out, we’re seeing properties, we’re selling properties, we’re collecting more information. And all of that information makes us the experts. And it’s why people come to us and it helps us value real estate.
So the CMA is just the basic framework that puts that knowledge into perspective. So I don’t want to kind of talk down to anybody who’s doing this, but posting properties on Facebook Marketplace does not make you a real estate agent. Anyone can post the property on Facebook Marketplace, but adding a CMA to your day to day approach to servicing clients will make you an incredible agent and that makes you a real agent in this market.
So we’re going to run through the overview of the framework today, and I want to start off by highlighting the importance of price when it comes to maximizing buyer activity. So these graphs demonstrate two things. The graph on the left shows the importance to list a property at the right price when it hits the market, as this is when it has the most exposure.
So you can see that it comes on the market timing. You’ve got weeks below here and that the first couple of weeks when the property is on the market has the most visibility, the most activity, and then interest drops down. The second chart here shows that if the asking price is too high for a property, it appeals to a smaller audience of buyers.
So a perfect example of these two factors kind of combined together is how our system works, our ranking algorithm and the automated property alerts to our database. So when a property is listed on FazWaz, it has the most exposure for the first 30 days, it’s a new listing, it shows up, it has more visibility, it has more ranking power. So when you add a new listing, it automatically gets the most visibility because it gives it an opportunity to have the whole market look at it and it automatically gets matched to our entire database of clients that are potentially interested in that property based on what they’ve looked at before.
So if the price is too high, it’s going to miss out on a huge portion of that audience. And that not just in the minds of our clients, but also as the agents as well. So if a property is priced too high when it comes on the market, then it’s quickly going to start deranking because people aren’t going to be interested in it.
We’re not going to get the inquiries, we’re not going to get the leads, we’re not going to get the viewings, and it’s going to get lost within the website and it’s just going to become a dead property. So I think there’s a lot to learn from the importance of price and that price is really everything, right? So the question then comes, well, how do we actually determine it? Right? So it starts with the inputs. So the main inputs included in a CMA, we call them comps, right? In real estate we call them comparable properties.
So what comparable properties can we use as a baseline to help us price the property? And when we come to comps, we look at three different areas. We look at current live listings in the same projects. So these are active listings that are listed in that same project.
We look at historical sales data in the same project and depending on if we have enough comps that are active in the same project or historical sales in the same project, we’ll then refer to current listings in historical sales in comparable projects. So these are the three inputs included in a CMA and this is what we’re responsible for looking for and assessing. So the question comes up, how can I do that in Thailand, right, where historical sales data isn’t available in most other markets? You just go online, you look and see what things sold for.
It’s very easy to get comps. So we’re going to look at two aspects of this. The first is accessing current listings that are online, right? Very easy to do.
You go on FazWaz, you look on the project, you see what units are available in there for sale or for rent, and then you go to the competitor websites as well to get a better indication of the total units that are on the market. Great, easy, comparable coming up with comps for properties that are currently on the market. Super easy.
The second part not so easy, right? So how do I price a property when I’m using overpriced properties to base my logic on? That’s a very good question. If everyone listing their properties doesn’t have access to historical data, then in principle they’re just guessing as well. So how do I price a property when there is no historical sales data or rentals? So that’s changing, right? And it’s because of everybody on this call that we sell and we rent a lot of real estate.
So we’re in a very unique situation where we need to provide that data to you guys so that you can make more informed decisions when speaking to owners, when speaking to buyers, when pricing, negotiating price reductions, that this tool can be used for everything. So this is something that I’m hoping to release next week, maybe the week after. I’ll show you a little bit about it now.
But this is going to allow everybody to access all real estate transaction market data in your region. It’s going to be sales and rentals because rentals in terms of yields is important for working out the value of a property as well. It’s going to show us list price to sole price.
It’s going to show us the top projects and it’s going to show us days on market, right? So we’re going to start introducing more structure and better framework to help everybody make better decisions. And it’s a huge competitive advantage and nobody has access but you guys. So in order to access this information, you’re going to have to work through us FazWaz agents.
So I’ll show you quickly the dashboard now. And this is going to change. We’re making a lot of improvements to include more information, but you can see that we can look at different property types in different regions, in different subregions.
So I put on a condo filter here in Phuket for sale in the region where our office is. And we can see that this year we’ve sold 518,000,000 baht worth of condos in this area of just condos, the average sales price, the price per square meter. So you can see it’s all condos.
It then goes to show you the regions where we’re selling and the value, the distribution by bedrooms, off plan versus resale. And then at the bottom, it shows you the actual units that sold. So we’re going to improve this and we’re going to put the project name next to it.
We’re going to put the size, we’re going to put the list price and the sale price. Because when you fill out your deal, sum up form, this is where it goes. It goes into this master sheet that houses all of this data, where we’re able to track the list price, the sole price, how long the property has been on the market.
And this data is now going to fuel this dashboard that will give you access to all of this information. The best thing is that it’s interactive as well. So you can come and say, well, listen, I just want to look at the resale units.
And you can see it updates everything. So now we’re just looking at the resale units. Maybe I just want to look at resale units and the two bedrooms.
So what’s going on in the resale segment of the market? Just two bedrooms. You can see that that changes the average price and the price per square meter. And then you can say, well, let me just look at Chintale, right? And then it updates it again, square meter.
So it’s interactive, it’s smart, everyone should be running out and buying an iPad so that you can use this and communicate with your client. So that’s an introduction to that and we’re going to roll that out in the coming weeks and is a huge advantage to you guys to actually include historical sales in your CMA. So when it comes to actually putting the CMA together, it’s just a simple template that puts all of that data in one place.
So I’ll share this template with you, but you can see across the top we have historical sales and you can see across the bottom we have comparable properties in that these are slightly different with the historical sales data. We have a little bit more information. So you can see here, this is actually just made up by me, so don’t pay too much attention to this, but you can see that here’s a couple of the project name, the location, bedrooms, built up area, square meterage, plot size for houses, list price, sole price, percentage to list price.
So you can see on average what properties are being discounted you can see the date that it was listed on Fazwas, you can see the date that it was sold and then you can see the days on market. So you’re able to actually use this information and say, hey, look, properties that are priced more competitively are on the market for a shorter period of time. And that you can use a comp score to help the owner understand the like for likeness of the comparison.
And then you’ve got subcomp notes where the comparable properties that are on market. So these are currently listed on the market. Historical sales that we obviously don’t have the sold date, we don’t have the sold price, but it allows you to put in the link.
And this is a great framework so that you can walk through owners to help them understand the value of the property. And that’s essentially what the CMA is. So in the interest of time, I’m going to keep moving on here.
So I think that hopefully your mind’s racing and you can see that all the benefits that come from doing a CMA right to you, you can stop guessing, right? And that you can price with data that’s going to help you stand out amongst all the competitors and it’s going to help you spend time on properties that will sell right, and it’s going to help you win exclusive listings too. So you’re going to be able to go and use this information. And a great question you can ask sellers and say, hey, what historical sales data did you use to help price your property? They’re going to be like, what are you talking about, historical sales data, right? Here you go, TADA.
Right on the owner side, it benefits them because they get realistic pricing, true market value, it helps them maximize profit. So again, a quicker sales cycle and a more competitively priced property creates more demand and more interest, which means multiple bids and a faster sale. Because at the end of the day, sellers want the most amount of money with the least amount of stress.
That should be right, sorry, most amount of money, least amount of time with the least amount of stress. And that’s what we want to deliver as a business and we need to all step up our game to do that. I mentioned this already, the CMA has more use cases than just with owners.
It’s a great tool to analyze a property to determine the overall value when adding a new listing to the platform. It was my favorite tool to use as an agent to get a price reduction with the seller. So if I’m every agent on this call, and we’ll speak about this in upcoming Power calls, I’m getting on the phone, I’m calling owners, I’m identifying properties that have been listed too high at a price that had just kind of fall into the depths of spazwaz and that have been forgotten about.
And I’m calling those owners. And I’m negotiating with them a price reduction that will help them sell their property in the next two to three months. Right? And that’s my focus.
And this is a great tool to help you do that. You will stand out, you will be more successful. And it’s a great tool to determine an offer price on a property when you’re working with buyers and sellers.
So, as I just hinted there, back to my diagram, the CMA is the middle part of this and it helps answers a lot of questions when it comes to is this property sellable? Well, the answer is always yes. Every property is sellable at the right price. You have to determine that.
You have to dictate that, and you have to do that in a way that is more intelligent than anybody else, right? And stop guessing. You will have data, you’ll be able to have intelligent conversations. And now you just need to get the owner to agree and understand to your price.
So that’s it a bit of a recap now. So the main value you can add to the business and to your clients is having intelligent price conversations with owners. Find the owners that are motivated to sell.
I think that’s clear. Use the CMA to show them that the price that it will sell for. Get the price that you want.
Right? And I think anybody who brings me any exclusive listings and say, hey, Brandon, I got an exclusive listing even though I told you not to do it yet. Love the enthusiasm, love the potential, but this is why you’re bringing me properties that have been listed on the market for years at the same price. Right.
Bring me a property that you’ve negotiated a price discussion and we can sell. Right? So use the CMA to show them the price and get the price that you want. Pitch to win it exclusively.
So next week, I’m going to walk you through a whole new listing presentation that we’re working on and that’s going to be a great tool for you to run through. It’s going to have that slide on intelligent pricing and I’ll walk you through and show you how I would pitch owners to win exclusively. And that this is the role we need you to focus on now as an agent.
We do not need you to self gen clients and post clients on Facebook. We do not need that. We have all the buyers in the market and we have a huge database of direct owners.
Your focus should be on finding great properties and great projects and securing a price that can sell. If you do that and you list it on all of our platforms, it will sell. I promise you.
This is how we’re going to move the market to be much more transparent and much more educated. We are the only people that can do this. So I hope that fires you up.
It fires me up again. I’ve gone over time. I can’t help it.
I’m a salesperson. I talk too much. But I hope you found some value in that.
And please send me messages. What else do you guys want to learn about? Where can I help you? What’s not clear? And I believe tomorrow we’re going to talk about the released reasons and that we’d listen to your feedback. We took all your feedback from the Friday feedback form.
We’ve revamped some of the reasons and I’ll walk walk through that tomorrow, which hopefully everybody will be excited about. Until then, go sell and rent some properties. Thanks, guys.