I helped a team member price a home that she is hoping to list. We exchanged one another’s opinion on price and landed on a range that we thought was most prudent based on the comparable sales.
The Sellers’ Viewpoint
It’s not unusual for homeowners to think that their home is worth more than it really is. In fact, it’s unusual when they don’t. When I followed up with my co-worker to learn the vantage point of this particular seller, there were no surprises. Both husband and wife think that our firm has by far and away the most expansive and effective marketing strategy. Their conundrum is that they think their home is worth more than we recommended. In fact, another agent from another firm agreed with them.
Making It About Them
Of course the team agent was very focused during her presentation on attempting to help the homeowner determine the list price that would procure the most money. Rather than simply disagreeing with the homeowners’ perspective, she informed them that she would be better positioned to help them with their decision if she could look through the comparables that the other agent used as well. They were happy to oblige.
The Challenge
My co-worker was immediately conflicted to see that the other agent, hopefully unknowingly, is setting the seller up for disappointment. The subject property is a raised ranch, and all of the comparables used by the other agent are colonials. In Fairfield County, Ct., raised ranches sell for a minimum of a 20% discount compared to colonials. Yet there was no adjustment made in the agent’s analysis. She left that up to my teammate.
The Best Experience
Over the years, we have helped many people achieve their real estate dreams and have had many experiences that were more than satisfying for our clients. Our best experiences have been those whereby the homeowner trusted our expertise. One of the things that make it difficult for homeowners to make such a determination is the dramatic variance in opinions that they sometimes receive from Realtors. Pricing a home is not an exact science. It seems as if the more opinions that a homeowner receives, the more confused they become.
Decipher the Noise
Once again, the best advice that I can give is to consider the source. I’m not a big believer in placing much stock in testimonials. I have learned via the hiring process, that it’s not that difficult to find people who will say good things about you. Not to mention the fact that everyone’s definition of “good,” is different. Rather, request that each agent provide you with information that shows their track record with:
- Getting their listings sold
- The sale price/list price ratio of the properties that they sell
- Median market time
- The market presence of their office
When it comes to getting your home sold, listen to the experts.
What has been your experience when attempting to determine the value of your home?
