Has Your Real Estate Agent Made This Rookie Home Appraisal Mistake?
Traditionally, a home appraisal is a document of record detailing historical sales data of what similar type homes like yours sold for in your suburb, and when.
It’s also a guide to a potential sale price that’s neither right nor wrong, and not necessarily indicative of what your home might sell for.
Damn right, and I hear you.
But here’s another important distinction about the process, that’ll really bake your noodle.
You see, almost anyone can go online now, and source statistical information from any one of several different online real estate portals about their property, and what properties around them have sold for.
While some reports generated are wildly inaccurate, some are not.
For me, I’ll always enter a home with the notion my potential client already has a ball park idea of the historical value of their home.
Hey, we’re Kiwi’s.
We like to think we know everything about our own patch of dirt, right?
With all this information readily available, everyone has an opinion. And it doesn’t matter whether each opinion is right or wrong, because whenever each of us reaches a conclusion based on what we believe is factual evidence and logic, we all think we’re right.
The truth is, there’s 9 different home appraisal values.
Yours, your partner’s, your neighbour’s, your friend’s, your lawyer’s, your accountant’s, your family’s, your real estate agent’s, and the market’s.
Everyone has an opinion, some based on fact, some based on fiction, and each of these opinions has been emotionally adopted into the psyche of their respective owners, but the only opinion that really matters, is the market’s.
We’ve got to commence a marketing campaign before we have any idea of where the market truly values your property. Yes, it’s important to know the approximate value of your home, but if you genuinely want to sell, the only opinion we truly value is your audience’s, because they hold the cheque book, and the pass-code to your next chapter in life.
Here’s a classic, everyday Real Estate scenario.
Three real estate agents from three different companies have been invited to provide a home appraisal for a home owner thinking about selling their property.
It’s almost a given that each of them show up for their respective appointments, research in hand, thinking they have a one-in-three shot of securing the business, by coming up with the highest home appraisal figure.
This is the amateur agent’s way of trying to secure business.
Amateur agents make the classic mistake of thinking they need to seduce their potential client with a home appraisal value which bowls the homeowner over with ecstasy, that they forget their appointment has a hidden vendor agenda.
It’s actually their job interview.
This is the time agents need to put their home appraisal report to one side, and focus on how they can provide REAL value for their potential client. How they can exceed their client’s expectations by presenting a rock-solid plan that gets them sold in 30 days, or less.
In a cooling Auckland Real Estate market, while knowing the approximate sales value your home might achieve is somewhat important, what’s more important is the value your agent brings to the campaign of marketing and selling your home.
Now, more than ever, agents need to demonstrate value in their fee by showing you a plan of how they’re going to put your home on-stage and in the spotlight, in a category of one, where’s there’s no perceived competition or price limit and generate a sale price that surpasses their appraisal figure.
Because honestly, that’s what every campaign deserves, and more.
In fact, next time you have an agent through to give you a home appraisal, why don’t you ask them this exact question, and see what sort of response you get.
Personally, I like to go to each home appraisal presentation with the aim of giving at least double the value of our fee. With the average fee in Auckland now around $25k, some of you may laugh and ask, “Tim, how do you demonstrate at least $50k worth of value in one presentation?”
In some case’s I can’t, but the intention is always there, and I know at the very least, the information and skills I possess have the power to transform the appearance and perception of value in almost any property from average, to outstanding, resulting in a sale price that rocks my vendor’s world.
And I do this by following the #1 golden rule of show-business.
“Give the audience what they want, and leave them wanting more.”
You may have heard someone else say the same thing another way.
“If you want massive sales success, find a hungry crowd and feed them.”
In my free time, I love to sing. I’m a covers band rock vocalist. I’ve performed in front of audiences of 5, up to 15,000. When you’re standing in front of any sized crowd, you want to make sure of only one thing.
Give the audience what they want, what they expect, and leave them wanting more.
Without exception, your audience (the market) is who your agent must appeal to, and seduce.
Right now, in Auckland, it would appear values have pulled back a touch, so wouldn’t it make sense to engage an agent who can implement a plan to increase your home’s likeability, and value perception, and create a marketing campaign that gets your home top-of-mind with your audience?
Call me for your “home appraisal” today.
Because no one stages, showcases and sells Real Estate like I do.
Originally published at timwebb.co.nz on August 5, 2017.