Hiring a Broker: Look Beyond the CMA

Generally, sellers will hire their listing agent in one of three ways:

1) They will list with an agent that they know and trust through personal and business relationships;
2) They will list with the real estate agent they have worked with in the past; or
3) The seller will interview several agents prior to choosing the one to list their home.

If you already know or have a past experience with a broker – great! You’ll know what to expect, how to interact with the broker and trust that they will work in your best interest.

If you choose to interview brokers then look beyond their valuation or Comparable Market Analysis (CMA) of your property. CMAs from the agents competing for your listing should fall within a similar range. However, if one agent's CMA is significantly on the high side - don't make that high price the singular reason for giving that agent the listing.

Hire your agent based upon their total marketing presentation, advertising package, track record, and reputation. Also consider your connection and ability to communicate effectively with the agent.

Any agent can price the home at a level you choose. Remember it is the total listing package that you are ultimately hiring and paying for.

Price Well

When it's time to sell your home, it's very easy to be enticed to overprice your home. We all know that prices were at an all time high in 2006-2007 and that prices have dramatically taken a nose dive in the past few years.

It makes sense that you want to price your home above the fair market value. You may have purchased your home when prices are a high and don’t want to loose money. Or you may have made improvements that you hope to see a return on. However those factors don’t change the price a buyer is willing to pay or the amount an appraiser will value your home in today’s market.

Be careful in the pricing of your home, as you probably won't realize you are priced too high until after you suffer from a lack of showings and minimal interest.

People generally purchase buy by comparison shopping. They will look at the better “deals” first unless your home is so unique that it can not be compared to other properties.

Find out what homes are on the market at the same price level as yours. Do they have more features? Are they in a better location? Updated? The buyers will likely be attracted other homes at the same price if they will receive more home/value for the price.

Also, if you do find a buyer at your price, know that they buyer’s financing could fail because of a low appraisal. The appraiser must prove that the house meets a standard and price that justified by market conditions and sales history.

So what can you do insure your home will be shown and that your price will stand up to an appraisal? Work closely with an experienced Jaret and Cohn Broker who knows the market in your neighborhood and town. And strongly take into consideration market trends, comparable properties and the advice your real estate agent offers.