If you're going to be a great listing agent, you're going to have to master the market and learn how to price property. You've got to be better at pricing property than any agent in your market. You've got to know the inventory, and you're going to need to learn how to communicate in a way to position yourself to sellers like you're a true market expert. So I'm getting ready for a listing appointment tomorrow. I'm going to do a full-blown comparative market analysis and I said, "Well, why don't I turn on the computer, give you a behind the scenes look?" I'm going to show you guys step by step, how I do my CMAs, and at the end, I'm actually going to do a full-blown seller's net sheet so you can see how I prepare for my listing appointments. Now, before we jump in, some things to consider when you go do a CMA or a comparative market analysis. You want to put your detective hat on. You are looking for concrete evidence, no emotion. We're looking at this through our logic brain, not our emotional brain. And we're looking to establish a price range. Too many real estate agents are trying to go into a listing appointment with the actual price. Well, I look at it through the lens of an appraiser. An appraiser doesn't go to the property and give the homeowner the appraisal amount on the spot, do they? No, they don't. They go to the property, they view the property, they preview the home, ask the seller some questions, do their research, and come back with an appraisal report. Well, as a listing agent, I think you should use something very similar. So, what you're going to see in this video is how I establish the price range, how I prepare for the appointment in a way where I walk the seller through three pricing strategies. And then when I have a chance to meet with the seller, walk through the property, I come back to them a day or so later with my actual list price recommendation. And so, that's what I recommend for you as well because without actually walking through the property, I believe it's virtually impossible to come up with the most accurate price of a home by just what we can find online.
So, let's jump right up into it and I'm going to show you guys exactly what I do. I'm going to walk you through, step by step, how I do all my CMAs and how it all works. So let me go ahead and share my screen. All right, so here we are in my MLS. Now, your MLS may look a little different, that's okay. I think you'll still get the picture as I walk you through this step by step tutorial. So the first thing that I'm going to do is I am going to go check the public record of the property, and I'm going to grab some critical information that I'm going to need to help me get through this process. So, I'm going to go ahead and do that now. I'm going to pull up the property. All right. So here is our property, and I'm going to be taking notes as I do this CMA, which I always think you should do too. So you should always have something to take notes with as you're doing your CMA because remember, we have to be the detective. So I'm just verifying home ownership with the prospect that I'm meeting with, which is great. Now, here's what I'm going to get. So I want you guys to pay attention and stay with me here, step by step. I'm going to show you exactly what I do to price a home. So the first thing that I'm going to do is I'm going to grab the SEV or the State Equalized Value. The reason I do that is as I value homes, I'm going to maybe come back to that and compare that to other properties that are selling right now. And this may tell us a lot of information later, and I'll show you when that's going to happen. I'm then going to look at and confirm their... I'm going to confirm the sales price, okay? I'm going to confirm the sales price. So let's see, right here, this home was bought in 2016 for $242,000 and it was actually purchased and I actually sold the prospect this home in 2014, and it was actually $259,900. So I'm just going to Mark that down as the original purchase price in 2014 of $259,900.Now, why do we want the sales price? Well, we want to see, "Okay, what was the market like when they bought the home? Was the market, when they bought it, better or worse than it is now?" And so in 2014, as I'm making this video in 2021, the market is much better now. The values are higher now than they were when this person bought the home in 2014. So right off the get-go, I've established what I call my floor. So my floor is $259,900. And so we're not going to be below that, okay? So as you're newer to pricing property, you want to make this as easy as you can. So you're not completely shooting in the dark. All right. While I'm here, I'm going to grab some property information, grab their square footage. So they are 1416, and this is a three bed, one and a half bath. I know they have a finished basement. They've got a two-car garage. Okay. I'm just going to grab... It's a one-story ranch. Ladies and gentlemen, this is huge because ranch style homes, if you don't know, are very rare. So ranch style homes tend to sell much better than any type of property because they're in such high demand. All right. So I've got the information that I needed from public record. Now I'm going to go ahead and search for the MLS listings. The next thing I'm going to do is I'm going to look at the property, when they purchased it. So remember what we talked about. They bought the home for $259,900. The other thing that I'm going to look at is the days on market when they bought it. Was it in a competitive landscape when they purchased the home? This tells me how desirable the property potentially is going to be when we hit the market.
So I know because I sold them the home, I represented the buyer, We were in a crazy multiple offer situation, but don't worry. If you weren't the agent and you don't know, the days on market's going to tell you a lot. If the days on market was very, very low, you know it was a competitive landscape. And so you can take note of that. And so we're going to go ahead and just make sure... We're going to go look at the photos from the previous listing. If you haven't been to the property before, this is critical. This information for you to go and look at the previous listing photos is absolutely critical. So you know what you're working with. It's hard to price a property when you don't know if they have any updates, you don't know about the property condition. So you're going to go to the previous listing, we're going to pop this open. Terrible front photo, by the way. So if you guys are going to list houses, please, please do professional photos, and please don't make this the first photo. Why? Because we have to realize that buyers are making a decision, whether or not to go look at a home based on the photos. If you're representing the seller, this is not putting your client's best foot forward. All right. I'm going to share a cup of coffee with you guys as I go through this. So I'm just going to go through the photos pretty quickly. They've got a decent, updated kitchen, and I noticed how it's pretty well. They've got granite, I'm kind of just showing you guys, stainless steel appliances, hardwood floors. The pictures again, are terrible. And so all my listings have professional photos. That's a non negotiable. So nice, updated bath. So it actually has two full baths. And I said one and a half before, there's actually two full. So that's the front. It's a cute ranch. It's highly desirable and a great price point in my marketplace. Let's just keep going. So there's the master bath. Okay. There's the finished basement. So it's a nice ranch, brick ranch home, decently updated. So make a mental note of the property condition of this home. So as we go through the CMA, we know what we can compare to. Okay. So now I've got my public record. I'm done with my previous listing notes. Now I'm going to go ahead and start my research on the property value. So while I'm in the previous listing, I'm actually going to look at a few different tools. You may or may not have these in your MLS. I want to see what the automated valuation tools are saying that this property is worth. I'm not putting a bunch of weight in it. I'm not letting them do the work that you're supposed to do as a market expert. I just want to see what the computer based evaluations say. So I'm going to go ahead and check into Remine first. So we've got a couple of tools. We've got Remine, and we have RPR, and we have our local MLS. Okay. So let's get that out of here.
So when I'm in Remine, all you have to do is hit valuation and Remine believes this home is worth $306,000. So I'm just going to make a note of that. Again, I'm not putting a bunch of weight into that. I'm just curious. This may help me in my journey. So now I'm going to go to RPR. And RPR is just a corelogic tool, Here we go, that does automated valuations all over the country. You should have this as a part of your MLS. So let's pop this open here. Okay. So we don't need that. Skip that. All right. So this RVM is coming in at $287,700, so this is lower. So I'm just going to make a note of that. And we may find out that these are completely off. And the last one I'm going to check is My Local MLS. My Local MLS gives us their opinion of value as well. I'm sure yours does too. So we'll just scroll down and we'll say, "Okay, so my MLS says this property is worth $303,000." So Remine and my local MLS are pretty much in the same spot here as far as values. Their confidence score. So the MLS is saying, "We've got a 70% confidence that this property is worth $303,000." And then they also give you a range, right? So that's what we're looking to do. We are also looking to establish a range, a price range. So now I've got everything I need to go ahead and start my manual CMA. So what we do, I always start from home and I always go to search. And I always start off with a map view. I'm going to show you why here in just a second. So I go ahead and pop into the address, I hit enter. Okay, here's the property. What we want to do, I'm just going to zoom out a little bit. We're only looking to get comparable homes in that neighborhood. I see too many real estate agents doing a radius around the property. That's a massive mistake. And I'll show you why right now. If I were to do a radius, a one mile radius, like a lot of people teach, the problem with that is, a one mile radius from this property, and I do... You're going to cross major streets and get comps in other neighborhoods that may or may not be comparable to the properties in this neighborhood. So instead of just doing a radius, that's the lazy way. I want you to actually draw the radius around this specific neighborhood. So what we're going to do is we're going to... I'm going to kind of zoom back in and I just want to get a really good glimpse into the neighborhood streets. Because you can see, this little section doesn't even connect to our neighborhood. So I don't even want to get this little corner right here.
So this is the neighborhood, right in here. It's a bigger neighborhood. So I'm just trying to see where these streets connect. All right. So here's a main street. This Mary Knoll Road. I'm not going to cross this, okay? So I'm going to draw my radius. I'm just going to go right in their neighborhood. So I'm going to go around. I'm going to go right up to right up to that street, then I'm going to go down. I want to get over there. All right. So this is their neighborhood. Now that I've established this radius, I'm confident that I'm in the right place. I'm not getting comps from over here, and over here, and over here, and all bunch of different neighborhoods. Now I'm going to hit criteria. Now, this is what we want to whittle down as much as possible. When you start doing a lot of CMAs, you start going on a lot of listing presentations, your eye's going to get trained to go down right here with how many matches the MLS is finding. Appraisers and appraisals are using three to five comparables. That's what we also want to get. 362 matches is way too many. We don't want that. So we just want the active properties, we get the active properties. Well, we need to see what the competition is doing. How do buyers shop? Oh, yeah, that's right. They comparison shop. So if I'm going to list this property, I've got to see what our competition is doing. What are they priced at, and what type of property is it, and how does it compare and compete with ours? Then I'm going to look at the pendings and the solds for the last six months. I'm going to start with six months first, and I'm going to see how many comps I get in... All right, so I have three. That's good. Let me go out a little bit further because I'm... Let's go out a year. Let's see how many that gives us. So that gives us eight. I'm going to leave this alone right now. Watch what's going to happen. I'm going to continue putting in the criteria that is most comparable to our property. So I'm going to hit residential. I'm going to hit sale. I don't want any leases, okay? Now our house is a three bedroom, okay? So that already took two of those matches out, which is what we want. That's okay. And I don't want this number to go down any really further. I'm going to go ahead and hit results. Had I had a lot more results here, I could have put in two full bast. I could have put in my square footage range and while I'm here, so I don't forget, what the appraiser does, which is what you should do when you price property, is go plus or minus 20% of your square footage. If your square footage is 1,000 square feet on your subject home, you want to look at homes that are 800 to 1,200 square feet. So I'm going to go ahead and hit results. And I'm going to first look to get rid of any outliers. So you can see... Your eyes should go right here to price. And we're trying to see, "Okay, is there anything that's just crazy out of left field here?" Like a million dollar house or a house that's selling for way less, and no. They're all in range. This one that hit the market, that's active. We're going to look at this. That's the highest price, which is okay, we're going to look at this. But all of the solds, look at all the solds here. The solds are $230,000 to $330,000. And so I'm going to look at this and we're going to get into that in just a second, but there's no outliers. There's none of these properties that I'd say, "Well, we absolutely have to get rid of that because that thing sold for a million dollars, it's not a million dollar house, and it's not a $50,000 house." So the next thing I'm going to look at is I'm going to look at the bottom of the market and the top of the market, okay? So we have a pretty big range here. It looks like $100,000 range. We've got a property that's similar in square footage to ours that sold all the way down at $235,000, so I'm going to make a note of that and we're going to explore why. And then I've got a property that sold for $335,000, okay? So there's my floor and my top end prices. But let's start to... We're going to start to do a compare... We're going to start to do a comp analysis now.
Let's go see why this property on Hillandale sold for $235,000. So let's just check this thing out. So it took them 34 days to sell the house. They went on the market at $269,000. Okay. So agent didn't know how to price the property. They sold it way down at $235,000 in a market where houses are selling so fast. So they overpriced it, which tells me why their days on market were so high, 34 is high right now. This is where you're going to start to learn as you become a better listing agent and knowing the market. So it's a three-bedroom ranch. Just like our property, let's look at the condition. So the lot is a mess. Okay. Ding, ding, ding, ding, ding, ding. Hopefully you guys are staying with me here. Look at the property's condition. It is pretty much a rehab. You pretty much have to go into this house and gut the entire thing. So now that we know what we know, I'm going to go ahead and go back to our properties. This is an outlier. I'm going to cut this one out of my pricing analysis because our property is not a rehab and that's really bringing down the value. So let's go to this next one on MaryKnoll sold for $245,000. So let's see. That's still on the lower end. So this is a colonial, there's only three pictures sold in 22 days. Same thing here. $269,000, they sold at $245,000. So their list price to sold ratio, same agent. Isn't that interesting? So this agent likes to overprice properties. And let's just see. So nothing on the inside of the home, I'm going to keep getting some more data because I'm a detective, right? So there's no property description, there's nothing. A very, very weird listing, which again, I don't know who the... Let's see if it's a bank. No, it's privately owned. No description. Look at their list of sold price ratio. 90% in a market right now, where the average is almost 100% list of sold price ratio, theirs is way, way, way, way down there. So this may be another outlier. I might not include that in my CMA yet. Let's look at this other one, okay? This is right down the street on MaryKnoll. Okay. Here's a property that's almost identical to our subject property. Now, this sold in 85 days. Why is it taking so long to sell? My experience tells me that when we open up the pictures that this property is going to be super outdated as well, but let's look. Three-bedroom, two and a half-bath, a little bit bigger than ours. They listed it at $275,000, got $265,000. Let's take a look. All right. Well, it's not at all. It's not super outdated. So this tells us a lot. The kitchen's okay, some weird tiling here. It's not great. It looks like they ripped off a backsplash. Let's just keep digging to see why this house took so long to sell. It's not that updated. Okay. So it's not as bad as I thought it was going to be. It's not great. Privately owned. Let's just see. I'm just looking for any type of data that might help us. I'm shocked that that house took that long to sell. I don't think it had a... Oh, it's on a slab. So ours is on a finished basement, okay? So, again, this is why you have to be a detective. You're looking at why is this... This just doesn't seem right. Well, it was on a slab. Everything else is in line, it's okay. I'm going to put this in the analysis, but it doesn't help our seller. So let's keep going. Now, this one is on their street, sold at $295,000. Okay. So this is a ranch, just like our client's, okay? So this is almost an identical house. You saw the way our house was built with the garage on the right hand side like this. This is going to tell us a lot right here. So, okay, and it's not updated at all. Remember how our subject property was nicely updated. This one, it hasn't been touched, it looks like, in a couple of decades. So this needs to be completely brought up to date. And let's just see, I bet you this is on a basement. This hasn't been touched since... I don't know, it looks like the '70's maybe '60s. These houses were built in the '50s. So this needs a lot of love, lot of love. But let's just see, which is great for our seller, a non finished basement. So let's just see. This sold in 56 days. They asked $295,000, they got $295,000. This is a great comparable. This is absolutely going to be in our analysis. All right. So that's a good one. We're going to absolutely pick that property for sure.
And then let's look at this one on Randolph. This is the highest sold comp in the neighborhood in the last six months. It's on an unfinished basement. This sold in 25 days. They asked $339,000 and got $334,000. That's in line. Let's check it out. It looks like a Cape Cod. So not a ranch, but the setup is very similar to our property. This is right in the same neighborhood. Nice brick paver patio, two-car garage, just like ours. Nice lot, nice landscaping. Let's see the inside. Okay, the inside is nice. This is updated wood trim here. Let's look at the kitchen and bass. All right. So kitchen has no updates at all. It's decent. Nice pictures, right? That helps a lot. Hot tub inside. Hot tub inside, that makes it kind of weird. A lot of buyers are like, "Ah, I don't want that in there." So that deters some buyers for sure. I just want to see the bathroom. Okay, bathrooms are nicely updated. I want to see the basement. So this is a Cape Cod. It's nice. This is nice and big. It's not crazy. I wouldn't say this is crazy updated. The bathrooms are updated and they don't have a finished basement. Again, our property has a finished basement. So right now, let me just level set with you guys. We haven't looked at this active yet, but based on the solds, we know for sure this one sold at $295,000 on a... This one was on a basement. Let me just remind myself. This is an unfinished basement though, right? Let's see. Yeah, unfinished basement. Okay. So I know for sure that our property is more updated than this property. I know it's got a finished basement. So all ready, all ready, we've just established our bottom line range for our pricing analysis, which is $295,000, which is the bottom level. So we're going to break through a major price threshold of $300,000. This was the first thing on my mind. I was like, "Can we break through $300,000?" Well, based on the data, no emotion. 100% certainty, we can break through $300,000. So $300,000 is going to be the bottom of my pricing recommendation, when we talk about a range. So hopefully you guys are all seeing that you got to the same place. As you're watching this, you can use the comments to communicate with me, let me know what questions you have, and then after I upload this to YouTube, I will go down there and answer some questions.
All right. So that's my bottom line. I really want to see what's going on now with this active listing. So let's look at this. $379,000 has been in the market for two days. I'm going to share with you guys a couple of tricks that are going to help you. All right. First off, we've got a nice professional photo that always helps a lot. So this is a tri-level. So these typically are a little bit harder to sell. It's on a crawl and a slab. So it's interesting. Their price is way up there. That other one was $335,000 so right now, my range is at $300,000 to $335,000. Before I get into that one, let me just look at this one more time. So this is Randolph, it's bigger than ours, this is the Cape Cod. Okay. So this is the Cape Cod, it's bigger than ours. Let me just go back, and...So none unfinished basement. Okay. So this one was decently updated. It's 500 square feet bigger. So you've got to take that into consideration. So this is probably my top number right now. When did they sell? So this sold in July of 2020. So the market in the inventory is lower now, which would probably have driven this price even up more. Let's go look at this active, see what's going on with it. All right. So they want $379,000. Okay. So let's see what's going on in here. So let's check it out. Nice and open. The layout though, for me... A lot of buyers won't even consider a layout like this because it is a bi-level, they're very hard to sell it. It doesn't appeal to a lot of buyers. Okay. So nice kitchen, nice open, big layout. Nice updated kitchen. Let's see what else they've got. It's a beautiful kitchen. There's no doubt about it. So they've done a lot of work to the property, we're going to now...
Remember I told you we're going to come back and look at the SEV. We're going to look at what this city is valuating this home from a tax perspective and how that relates to our subject property. This is like a tri-level, there're three floors in one house, it's weird. All right. So it's decent. It's decent. Nice master. Let me just go through the photos. They've got nice hardwood floors. Those are the updated floors, great backyard, great stamp concrete patio. All right, that's decent. So watch this. What I'm going to do... Well, first thing I'm going to look is I'm going to pull their public record, and I'm going to say, "Okay, well, what is the city assessing their home's value at?" Well, if we look at the SEV, let's see when they bought it. They've been here for a long time. They don't even have the when these people bought the home because they've lived there for so long. So this SEV is pretty low too because they haven't been reassessed for a while.They're way down at $120,000. Remember, our property was assessed at $143,000, suggesting the value of this home... Of our home should at least be this one, if not more. So let's go back here. Now, what I'm going to do, here's a little trick. I'm going to pull up showing time. I'm going to say, "Okay, let's see..." I want to look at how many showings they're getting. Are they all blocked off with showings? Because this is going to tell us a lot. I want to see the traffic they're getting at this price. So if I schedule a single showing, all right, so you can see today's Thursday, they don't have... They've got some decent traffic. So all these black marks outside of this big block, this is when the seller can't show the property. All these little blocks here tell you how many showings they have. So this looks like two showings back to back. And then these are all individual showing, so they've got... It's decent, I wouldn't say it's crazy. So they've got, one, two, three, four, five, six, seven, eight, nine, 10 showings. It's not bad, it's not bad. They've got 10 showings over the next two days. So Friday looks like a busy day for them. So they're getting traffic. That's the thing. That's what you want to look at when you hit the market and you've seen my listing presentation, you want to know when we hit the market at X price, you expect an offer within the first week in today's market, or you expect a lot of traffic. So they're getting a lot of traffic.
This is really interesting because my top line was $330,000, $340,000. These guys are way up at $380,000 and there's 1,600 square feet. It's going to be... I can't wait to see what happens with this property over the weekend. And so this is definitely bringing up my bottom of my range however. Remember our bottom range was $300,000. Now this just brought the entire thing up. So our range is probably more like $325,000. I've got to see what happens with this property over this weekend. So they went from... It looks like they accepted an offer and came right back on. Let me just see. All right. So there's no notes in here. Yeah, it'll be interesting to see if they get an offer over this weekend. And I'll talk to the seller when I go on my appointment tomorrow, but... So I'm going to go back and now my range is going to go up. So now I'm probably more like $325,000 to $350,000, and this number, it's super high, super high. It'll be so interesting to see what they get here. It'll be really interesting. Man, that's got me a little perplexed that this property is asking for so much. I'm going to take it into consideration at $375,000. So the question is... The thing that I'm thinking about right now as I'm doing this CMA is, I talk a lot about price bracketing, meaning there's major price brackets in question here. We've broken through, we're clearly through that $300,000 threshold, which I'm comfortable with. Price bracket, it means every $25,000. As a buyer searches for homes online, as you know, they're looking for houses between X price and X price in whole numbers. They don't look at homes at like $307,666 to... You get the point. They look at $325,000 to $425,000, $400,000 to $500,000, $300,000 to $400,000, $300,000 to $350,000. So we have three brackets here that potentially we're going to have to break through, which is $325,000, $350,000 and $375,000. Obviously, I can't see us going more than $375,000. And so I'm just trying to really look at what our range is going to be because $325,000 to $375,000, a $50,000 swing makes me a little nervous. At this type of price range, the range I'm trying to get into is $20,000 give or take, is where I typically want to have my range when I'm in the $300,000 over brackets, maybe $30,000 tops.
So, right now, and I'm going to meet with the sellers tomorrow. I'm going to look at... And it depends what happens with this property. This property SEV is smaller. They have 1600 square feet, which is a little bit bigger than ours, their lot, they've got a two-car garage, a lot of similar... It's a newer built home, still built in the '70s. It's not a ranch, ranches are in higher demand. So I'm going to have the range you guys right now, I'm going to go in with a range of $350,000 to $375,000. And you kind of saw how I got to that number. This may alter. Basically we'll get an offer at like $355,000, then our property might go down. Well, absolutely will go down. But right now for my appointment, I'm going to take in everything into consideration. So I'm going to go back and I'm going to actually get my CMA. So I'm going to absolutely bring this comp, then I'm going to grab this one on Randolph and this one sold how long ago? Okay, this one was in August. So nothing sold really recent. And I'm going to bring this one on Vreeland. And these are going to be the three comps I go with. These other two are way too low. These ones need to be totally updated. And so these are the three comps I'm going to use. And so I'm going to go ahead and hit CMA, go ahead and hit pages. So I always include... I'll show you what I include. So I always get a three up comparison with subject, days on market chart, and the map. I go ahead and hit finish. I've used CMA. This is going to generate my CMA, and then we're going to do the net sheet together. And you're going to see, okay, how I get fully prepared. And the thing is going through that exercise that I just went through, is I know these comps inside and out, and I'll revisit those before I go on my appointment tomorrow, but now I can speak intelligently with absolute confidence with what's happening with those properties. All right. So here's my CMA. I'm just going to... I'm going to save this. So there we go. All right. So I'll show you what it looks like real quick. So I have a snapshot of the CMA and it kind of breaks down each comparable and all the details. So this tri-level is just super interesting to me. I can't wait to see what happens over the weekend.
So all the comps, all the details of the comparables, then we have a days on market analysis, which is, if you guys have been following me for any length of time, you know I put a heavy, heavy, heavy emphasis on this. And then I have a map. So I can show the seller to say, "Okay, this property is on your street. This one's two streets over this. This one's three streets over. This is the active. This is on that MaryKnoll." This one's super interesting thing to me. So I'm just going to go ahead and save this. All right. So I'm going to say Vreeland CMA, save it to my desktop as a PDF. All right, cool. Now, I am going to do the seller net sheet, okay? It's amazing how many agents go to listing appointments and they don't have a seller net sheet. You're there to walk through the numbers. I was talking with my agents, my coaching program yesterday about this. You know how you talk to an insurance agent and you go get a quote on your home and auto insurance, or you go visit the dealership and find out how much prices are in cars? This is your quote process as a real estate agent. If you're not showing them the numbers, what are you there to discuss? So you have to do a seller net sheet. Here's how you do it, okay? I'm going to give you all the ratios as well. So we go to finance, and most of you have this in your MLS because I work with a lot of our agents in our coaching program and I look at many, many different MLSs, and you should have this. So if you go to seller estimated net proceeds, this is where I'm going to put in the options, okay? So I'm going to put in three options. So remember I told you $350,000 is going to be my low mark right now. And then I'm going to put in $365,000 and then $375,000 as our top end. I don't know their mortgage balance right now, so I'll take that into consideration when we actually get to the property and I'll ask them about it. All right. So transfer tax, okay? You've got to know this as a top listing agents, sellers pay for transfer tax, title, real estate commissions. The buyer pays for everything else. So transfer tax in Michigan is calculated as 0.875% of the sales price. So I'm going to take... Because I want to show them worst case scenario numbers, because what we're not putting into this analysis is tax prorations. These are the taxes the buyers are going to pay back the seller after they purchased the home, which is going to increase the sellers net bottom line proceeds. So this is truly a worst case scenario projection. So I put in $375,000 times 0.876%. And so there's my transfer tax amount. So I'm going to throw that in there, $3275. Now we're going down to the title. Now title premium is typically, this is on average, calculated at $500 for every $100,000 in sales price. So if we take $375,000, okay? So $500 for every $100,000, so we get $300,000. So that's already $1500, almost $400, okay? So I might just go up to $1750 as a good estimate on how much the title premium's going to be. We charge a $295 broker compliance fee in Michigan, and I'm going to put in the worst case scenario commissions in here, okay?So we're not talking about the flexible compensation structure at this point in time, we're going into the appointment looking at worst case scenario. So the estimated seller net proceeds is... Let me just go like this. I'll show you if we view the report, this brings up a nice snapshot of the three scenarios that I could walk the seller through tomorrow, and I can walk them through what would happen if the property sold at these three prices, break down all the costs, I'll put in their mortgage payoff.
So track that off of this number and at the appointment, I'm going to have this sheet in front of them, circling numbers, and at the end of my presentation, I circle the number and say, "Mr. And Mrs. Seller, is this a number you can live with?" And so what I did for you guys is I actually recorded a live listing presentation. I'm going to put that video right here, go and check that out, so you can see how I present all of this information at a live listing presentation. Now you've seen me prepare for the listing presentation, now you can see what it looks like in real life.