CAMO – 7 Felipa Ct, Tiburon Profit Maximization Strategy
by Andy Falk 2/2/2006
CAMO Goals
- Pricing. You get feedback from other agents about possible price positioning in the market. - Pre-marketing. Possibly getting a buyer into contract before you get on the market, when your leverage is greatest. - Shorter time on the market. With this premarketing you hit the market with momentum, exposure, & qualified expectations instead of going into it cold.
CAMO – Limited Strategy
• Just have 6-12 agents come through that are likely to have good buyer prospects. This will likely lead to a reasonable offer on your property in the current market. • Advantage, get good pricing feedback from well qualified agents. • Disadvantage, limited pre-marketing
CAMO – Open Strategy
• Open up the CAMO to all agents on the tour day, Wed. The likelihood of getting an offer from this activity would be even greater from a pure numerical prospective. If you already have a good idea of the market value you should disregard most of the white noise from random agents. Pricing feedback being $100,000’s off is common. • Advantage: maximization of pre-market exposure
CAMO – Market Value Pricing Strategy
• You know the market value and the owner agrees, but we’re looking for more feedback on the $1.4 price expectation. • Advantages: you probably will see someone step forward early with a nice offer in the ballpark. Moreover you can set the expectation that in order to take an offer before the property goes on the market you are hoping for more, and you may get it.
CAMO – Over Pricing
• Take the position that the owner is looking for $1.6 million. • Let the other agents know that the owner would be open to any ‘reasonable’ offer. I’d say I think $1.6 is a little high, and if anyone came in lower I’d do my best to get the offer accepted. Advantage: Shooting higher could get a higher offer. You still have the option of putting on the house at $1.4 later.
CAMO - Conclusions
• CAMOs allow listing agents effective means of marketing homes outside of the regular market • There are strategic choices that need to be made regarding CAMO pricing and showing • You should be able to get at least get the market value for your house though a CAMO, and possibly significantly more though over-pricing • Please note that over-pricing is not a recommended strategy on the open market