Choosing a Broker
You’ve decided to put your home up for sale and contact 3 real estate agents for a market analysis. The first says that your home should be priced at $350,000, the second says $359,000 and the third says $369,000. Which one to choose?
A market analysis is the broker’s opinion of what someone would be willing to pay for your property, based on similar homes that have sold recently. When comparing your property to others, adjustments to value are made to compensate for the various amenities and differences between the properties. Correct pricing of your home will minimize the amount of time it’s on the market.
Two things come to a potential buyer’s mind when looking at a home that has lingered: “There must be something wrong with the home,” or, “I can give a low ball offer because the seller must be desperate by now.” At this point, you may well be desperate to sell, especially after months preparing a home for showing and the delay on your future plans.
Another pitfall to overpricing: unless your home is being purchased by a cash buyer, your sale will be subject to a bank appraisal. If the home doesn’t appraise, the sale is in jeopardy. You don’t want to go back to the negotiating table a week before closing, or in the worst case, go back on the market!
While most brokers are honest professionals, there are those who may puff up the price just to get your listing. The result is a lengthy market time, and an eventual price adjustment.
Then, there are those in the real estate industry who promise a “quick sale,” or a “reduced fee” … sounds tempting, doesn’t it? Allow us to translate. “Quick sale” = underpriced listing. “Reduced fee” = compromised service. Make sure that you choose someone who makes you feel comfortable, and who earns your trust and confidence.