Dear David,
When we need to get something fixed around the house and don’t have a “go-to” service provider, we usually get two or three estimates, then decide what to do. We’re thinking of selling our house this spring, should we use the same process to establish the value of our home? – JUST WONDERING
DEAR WONDERING: Humans tend to be creatures of habit, and over the years I’ve come to understand that consumers and businesses interact in a few specific ways. My practice thrives on repeat, referral and recognition relationships. Others, like roofing companies, provide estimates that consumers match up against market competitors. When sizing up one service provider against another, it’s important to make sure you’re comparing apples to apples, not avocados. In the realm of consumer electronics for example, two laptops might look similar from a distance, but their capabilities and performance may be vastly different.
When your home needs a new roof, it’s fairly simple to get a few estimates and compare the materials and warranties to establish the right choice for you. Pricing a home is a bit more complicated, and I often cringe when I hear people say they are getting three opinions to establish market value. Selling your home is not the same as replacing your roof. If you approach the transaction in that way, you can end up compromising your position.
Before you list your home, you have two important and separate decisions to make. The first is picking a Realtor. If you are not already working with someone you know, ask your family, friends or business colleagues for recommendations. Trust is paramount in this relationship, and many factors will affect your decision. Your home is often your largest asset, and finding the right agent is one of the most important financial relationships you’ll make. Reflect on which qualities you want to see in an agent. If someone leaves you feeling like you need a second opinion, you probably do. When you’ve decided who will sell your home, your second major decision is how to price it. The market will ultimately dictate the value of the property, but your pricing strategy and your agent’s ability to position it in the marketplace can greatly enhance the outcome of your sale.
Approach discussions with your agent like a surgical consult. A skilled surgeon will often set their patient’s expectations by speaking in terms of probabilities. If someone predicts a higher-than-normal end result, they may be overestimating what willhappen in order to gain your confidence.
PRO TIP: Big decisions often come down to comfort levels. When I spoke to my doctor about a recent shoulder surgery, he was confident, concise and left me feeling comfortable. After speaking to him, I didn’t feel the need to speak to another surgeon. The same should be true for your real estate agent. #Advice #AskDavid #TheNegotiator
