Ask a thousand real estate agents how to price a home, and you’ll get a thousand different responses, methods, and prices. It sounds like a joke, but it’s essentially the truth.
In fact, team leads, brokers, and MLSs spend inordinate amounts of time and money training their agents on how the CMA process is conducted to produce a “price.” Then, agents can choose one of the various CMA presentation tools out there and put that “price” in it. Even scarier is that agents are taking averages of price per square feet, plugging that into an AVM, and BOOM…a “price.” Might as well use some bones, ruins, or smoke rings to make a price. Wonder if the public really knows this, or understands it?
These challenges create plenty of fear, uncertainty, and doubt. Clients aren’t sure what price to believe, as every CMA, AVM, and pricing method will get them a different result. Even Zestimate, designed by so-called industry leader Zillow, has been proven inaccurate.
Here in Charleston, we needed a house sold and went to Anton Roeger, our founder and CIO, to sell for us. As an experiment, he said, “Check the Zestimate for your house. But don’t get too excited.” So, we did just that, and were astounded by the results. Zestimate was 23.6% overpriced! The home would never sell at the Zestimate price in that market. And how do agents address this with their clients? Clients who want to sell for as much as they can, and who trust companies like Zillow when they show sellers a high price. As an agent, if you come to them with a different price, and no concrete evidence to back it up, you might lose your client.
Our house closed, and we got a great price, even though seasonality wasn’t in our favor and it was a serious buyer’s market at the time. We used Anton to sell, and he used APC Residential to price. We trusted Anton’s price because he was supported by a visual & interactive pricing report that explained the market into which we were trying to sell. Our agent explained seasonality and used real-time MLS data to validate market conditions.
Agents, Teams, Brokerages, and MLSs need new tools! Pricing, including Rental, is solved, with APC Residential. This is the tool agents can use to create trust in pricing. Home pricing doesn’t have to be a crapshoot anymore. Become the pricing expert.