How to Avoid the Most Costly Home Selling Mistake that Virtually 100% of Traditional Agents Make When Pricing Your Home
By Lee Abraham
As a real estate appraiser, expert witness and agent for the past four decades, I am on a mission to let every home seller know that there is a clear and obvious alternative to using outdated traditional property marketing methods that will likely sell their home for far less than its maximum potential price.
How Do You Uncover the Illusion of Home Selling Expertise?
Almost 100% of sellers rely on a Traditional CMA to set the list price for their home!
A Traditional CMA (Comparative Market Analysis) gives the illusion of expertise by taking the price per square foot of recent comparable sales and multiplying them by the square footage of a home to calculate its price range.
The problem with using the price per square foot of another home is that no two homes are exactly alike. For example, if your home has a new expensive kitchen, and the CMA only averages the price per square foot of comparable homes with older kitchens, this could be a costly mistake for you because the CMA does not account for the premium value of your upgraded kitchen.
CMA’s also don’t consider how to increase the home’s perceived value with strategic, cost effective home improvements. In addition, a traditional CMA doesn’t take into account the effectiveness of a comparable sale’s property marketing campaign, seller motivation, agent negotiation skills and dozens of other key elements that impact the sale price of a home.
If a Bank Won’t Give a Loan Based on a CMA , Then Why Should You Trust a CMA to Set the List Price for Your Home?
Banks use variations of what’s called the price adjusted sales comparison method. This is much different than a comparative market analysis, or CMA.
Allowing a traditional agent who relies on a CMA to determine the maximum potential price of your home is a costly mistake because a CMA doesn’t take into account adjusting upward or downward for the dissimilarities of the property that impact the selling price of your home. This price adjusted method can help you sell your home for up to 20% more money than by using a CMA.
Need Proof? Bankers laugh at the thought of using a CMA to protect against making a bad loan on an overpriced property. Lenders hire licensed appraisers, not agents, to estimate the market value of a home because appraisers perform a Price Adjusted Sales Comparison Analysis to justify and support their value conclusions. You should do the same before agreeing to a list price.
The Only Reason to Hire a Listing Agent is to Sell Your Home for Maximum Potential Price
Using a Price Adjusted Sales Comparison Analysis is just one of the top 10 home selling secrets you need to know if want to sell your home for its maximum potential price.
Relying on a severely limited tool to price a home is a lose-before-you-start strategy, yet virtually every traditional agent uses a Traditional CMA.
Why would Traditional Agents use such a simplistic tool? It’s obvious. The inconvenient truth is that the barrier to entry to become a licensed real estate agent in the State of Texas is embarrassingly low. In fact, agents are only required to take 180 hours of coursework to become a licensed real estate agent! By comparison, hairdressers and barbers are required to take 1,000 hours of coursework! What’s wrong with the picture?
If your agent is not expertly trained to proactively managing all of the variables to sell your home for the Maximum Potential Price, then what exactly are you paying them to do
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