How Real Estate Agents Can Give Vendors Realistic Expectations.
Every agent aims to deliver the dream result for their client’s property. Who doesn’t want to achieve a premium sale price that wipes everything else off the board? And let’s face it, that’s what most sellers want to hear.
But to avoid huge disappointment all round, it’s essential to educate prospective sellers to help them set realistic expectations of their home’s value. That can be difficult because every home is unique with its own story to tell, and trust isn’t always secured from day one.
Here are some tips to help ensure your vendors are empowered to set realistic expectations of their home’s value.
THE CURRENT MARKET APPRAISAL
Most agents have their finger on the pulse and have a ‘feel’ for the market. They read the latest property stats and know their local area well.
The discussion around pricing a seller’s home begins with a Current Market Appraisal, which gives credibility, talking through recent sales and active listings of similar homes in a seller’s area. It’s a useful process but requires significant trust to be the end of the conversation. Sellers need to be thoroughly convinced on the pricing issue to really feel comfortable where their home sits. Here are some things vendors can do themselves to get educated.
EXPLORE ‘ESTIMATED VALUES’
Encourage the exploration of computer driven estimated values as a starting point. Agents should advise their clients that while Rateable Values are helpful, they’re based on comparable sales at one given time, and they’re only produced every three years. The same warning applies for our HomesEstimate and other computer generated models. While they’re updated more regularly, they can’t take into account the wide range of variables associated with a home’s value. They’re a great starting point, but other insights are needed.
VIEW SIMILAR HOMES
Request that they attend similar open homes to check out the competition. They need to find out for themselves how their home compares with others nearby.
Build a checklist for them to consider the broad range of variables. Consider the size of the home and land, the number of bedrooms, the home’s age, construction, floorplans, layouts, quality of fixtures and fittings, whether it’s been renovated, the way it’s presented, views, school zones and so on. Ensure they understand that the asking price isn’t the final sale price.
RESEARCH HISTORIC SALES OF COMPARABLE HOMES
When similar homes are known, but aren’t currently on the market, it’s worthwhile diving into what they last sold for, and what their HomesEstimate is. This simply acts as another set of data to build an educated view of prices in the area.
MAKE IT EASY FOR VENDORS
Homes.co.nz has been produced to make the process of researching the value of a home easier for vendors. It’s a single map interface that allows the exploration of a neighbourhood’s current listings, estimated values, rating values and sales histories. While none of this replaces the human perspective and insights of the local agent, it will act as a path towards being an educated seller with realistic expectations.
Introduce vendors to Homes.co.nz to help them build a realistic understanding of value. You’ll gain trust and find the pricing process moves from a discussion full of emotion, to one more influenced by the facts of the current market