Real Estate Values
Using Your Local Real Estate Agent
To establish real estate values, a CMA (Comparative Market Analysis) is a great way. As of this writing, most real estate agents will do this for free in the markets that I'm familiar.
You should start by calling two real estate agents that are known to work in your neighborhood. Set up appointments with each of them either on subsequent days, or make sure that you leave enough time between appointments.
Personally, I'd leave 3 to 4 hours between the appointments just in case you get a long-winded fellow like myself!
The
agents will probably do a presentation of some sort about why you
should list with him or her and may give you market values then, or may
set up a time to return with the real estate values.
It would be my advice that you not tell them you plan to sell by owner until they have given you values. After you have been given a listing price by all means tell them you are going to “try” for sale by owner.
Of course we both know that after finishing your Master's Degree in Sell My House FSBO you won't be just trying but accomplishing!
You will notice in my header above I said 2 or 3 real estate agents so now the why.
After both real estate agents have given you their opinion of real estate values, or a broker price opinion, you may have a problem.
The first agent says your house values at $295,000.00 and the 2nd agent told you $272,000.00. Which is it? Why are they so far apart? What to do?
Reasons Why Values Can Be So Far Apart
When a CMA is Done by 2 Different Agents
The first reason for 2 totally different values can be as simple as one real estate agent not knowing the neighborhood well enough or being new to the business.
The second reason could be the “Hidden Agenda” Let me explain.
When the pricing given is well above market values, the real estate agent may be inflating the price thinking if there is other agents coming in, you will go with the highest price.
Of course after being on the market for a short time they are trying to convince you to lower the price!
When the values given are well below market value, the hidden agenda may be the “quick sale”. The real estate agent in this case may be trying to “low ball” you so that the property will sell quickly and therefore the agent will receive a nice commission cheque.
Solving the Problem
Who is right? Who is wrong? What shall I do?
You call the 3rd agent! Now all you have to do to be reasonably certain, is take their opinion of the real estate values and compare it to the other two.
Dollars to donuts, the third price will be close to one or the other. If it is $293,000.00 probably $290,000.00 - $295,000.00 is in the ball park. If the third price is say $269,000.00 then you can be reasonably certain that somewhere between $268,000.00 - $273,000.00.
When it comes to CMA real estate values, you still have to use some caution even when you use 3 Realtors.
Using a broker price opinion is usually a very good way to establish price, but it lacks one extremely important ingredient.
Do you want to know what that is? To jump ahead, go to House Appraisal and find out. This method will eliminate one of the huge drawbacks of selling for sale by owner.
The Whole Package
When you take this Master's Degree Sell My House FSBO course, I promised the whole package. This information is not watered down. I explain the the what, where, when, how and also that very important WHY!
After you look at the why, you hopefully will be thinking “That makes perfect sense”.
For More Information on Pricing Your House
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