Hi folks. Lenn Harley wrote a post today titled “Looking at Real Estate Teams and Team Specialists”. If you haven’t read it please take a moment to do so. In her article Lenn wrote…
“The assumption is that training for property valuation is for listing agents for CMAs and not for buyers agents. IMO, one of the most valuable skills any real estate practitioner can have is that of accurate property valuation.”
I have to say I agree with that statement. As most of you know I have been primarily a listing agent for many years. Over the last 18 months or so I have had to revamp my business and now find myself working with more and more Buyers.
I find that one of the advantages I have is that I know how to value property. My market is saturated with foreclosures and Short Sales. Because of this, the listing price means nothing. The listing price is normally quite a bit lower than what the property will eventually sale for.
The purpose of a low listing price is to create a bidding war. I completely understand this strategy and have no problem at all working within the rules of this “game”.
My Buyers are counseled to make offers based on the value of the property not the list price. This is very important for Buyers and their agents to understand when working in this kind of a market.
How many of you have had Buyers that insist on offering below listing price on every property they look at? How many of you counsel then to do this? Is the extent of your counsel telling Buyers to offer 90% of list price? Be honest. When was the last time you prepared a full blown CMA (Comparable Market Analysis) for a Buyer?
Do you even know how to prepare a market analysis? From some of the offers I see coming in on my listings my opinion is that..no..you don’t. Your Buyers are missing out on properties because they are hung up on the listing price. Your job is to make sure this is not a stumbling block for them. The best way to do that is to make sure you are giving your Buyers a CMA.
This Buyer CMA can be for a specific property or it can be based on the style and type of property they are looking for. Does that make sense?
Here’s a CMA I prepared last week for a Buyer. We ended up getting his offer accepted even though there were about a dozen offers on the property. Check it out. Any questions?
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
Are you a Florida REALTOR(R) looking for a change? Check it out.
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