You may not realize it from all the marketing and hype around how we Realtors tend to think of ourselves (“multi-million dollar producer”, “#1 agent in [fill in the blank]“, etc.) but the general home buying and home selling public really doesn’t think very much of us, as a group.

Sure.  In order to call ourselves Realtors we commit to abiding by the National Association of Realtor’s Code of Ethics. We are regulated by the various States where we are licensed to work. We can only renew our license by participating in continuing education and some of us even go the extra mile to earn professional designations which require additional levels of experience and education.

No matter.

Year after year, a Gallup poll suggests that Realtors are near the bottom of their Honesty and Ethics Poll from November of 2008 — even below Bankers and Lawyers (but above Congressmen!).

Pricing Your Home For Sale

This is never more evident that when a Realtor sits down with a potential home seller to discuss what price the seller’s home should be offered for in the marketplace. We Realtors will complete a thorough Comparative Market Analysis showing homes that are similar to the home seller’s house and in the same neighborhood or very near by. Homes that are currently on the market (the competition), homes that are under contract and homes that have sold recently.  However, no matter how thorough Realtors may be and how much real, empirical data Realtors may be able to provide, there is always the emotional context to consider. Most home sellers have a strong emotional bond with their home even thought they have made a decision to sell it.

If you combine the emotional bond of the home seller with his house with the inherent suspicion that the Realtor just want to “price the house low for a quick sale” and doesn’t really have the interests of the home seller at heart you can sometimes end up with a house that’s priced too high for the market.  It ends up sitting and sitting and sitting on the market with no offers and, sometimes, no visits to the house by potential buyers.

A Solid Alternative For Pricing Your Home For Sale

Happily, there is an alternative.  It’s called a Pre-Listing Appraisal.  It’s ain’t free — anywhere from $300 to $400 in the MD Suburbs of DC. However, it will take a lot of the guess work out of the process and it take the Realtor’s self interest in getting the listing out of the picture, too.

There’s a wonderful article by Rita Bradley , a California Property Appraiser, that talks about the benefits of a Pre-Listing Appraisal.

Also, don’t forget that in an effort to win your business, some agents tend to recommend an asking price that’s on the high side. This could be disastrous for your finances. When you hire an appraiser you will get an un-biased opinion of what your home is truly worth. The appraiser has no incentive to value your property too highly.

— from Sell Your Home Fast – Obtain a Pre-Listing Appraisal

I completely agree. In fact, I like this concept so much that I’m willing to offer a Pre-Listing Appraisal for any of my clients that want one — on my dime. I’ll still prepare the Comparative Market Analysis and I’ll remind my clients that the  buyer’s mortgage company or bank will order another appraisal anyway.  However, it’s a whole lot more likely that a Pre-Listing Appraisal will:

1. create more activity by potential buyers visiting the home because it’s priced competitively
2. eliminate any surprises when the appraiser for the buyer’s mortgage company does their job
3. create an offer from a potential buyer that is closer to the list price
4. create an offer sooner rather than later

There is no perfect solution to pricing your home to sell quickly in a market as volatile as this one.  Getting an objective appraisal is a great start.

If you’re interested in knowing more about the appraisal process or if you’re interested in knowing what your home may be worth in today’s market, just shoot me an e-mail or give me a call at 240-417-9100.