Admin

It's the hardest thing an agent does

By
Real Estate Agent with Atlanta Communities 303302

I think there several things that real estate agents do that can be difficult. Telling a client that they did not get the home they wanted due to multiple offers is tough. Explaining why the cat urine smell in the house needs to go away to a seller can be awkward. For me and many other agents though, I believe that pricing a home for sale is one of the hardest things we as agents do, if we are doing it right.

In the Atlanta area we have a multiple listing service that gleefully advertises that they have made doing a cma so easy it can be done in less than 5 minutes! I wonder how accurate it is? If we as agents are doing things correctly, there is much analysis that goes into the valuation of homes.

Yes, I understand it is easy to pull up homes that were sold over a given time in a given area, but this only gives us a report on Comparable Market ACTIVITY, not analysis. Would you be happy with the answer to your question about your homes worth if the answer was something like, "Well, 5 homes sold this month and 2 more came on the market". Are they similar in size, age, look? Are the floor plans the same? What about the roof and AC systems age? This is where the analysis comes into play.

If you are taking 5 minutes to value a home, you are either really, really good, or you might be taking a short cut. I average about 3 hours on the valuations I produce. I do not advertise these as Free, just ask! I do not charge for this service, but by offering these out as free! we are devaluing one of the most important things we as agents do.

Posted by

Peter den Boer, Associate Broker, Realtor

Atlanta Communities Real estate Brokerage

 

Ph. 770.713.1545

www.denboerhomes.com

 

I write about daily life as a Realtor in the Towne Lake Community in Woodstock Georgia.

Comments(40)

Show All Comments Sort:
Karen Steed
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton - Tallapoosa, GA
Associate Broker Haralson Realty

I do love it when people say "Zillow says my home is worth X dollars."  I ask them "When did Zillow come by and see your home?"

Apr 10, 2015 02:53 AM
M.C. Dwyer
Melody Russell Team at eXp Realty of California, Inc. - Felton, CA
MC Dwyer-Santa Cruz Mountains Property Specialist

You're right Peter, it takes hours to do a great CMA.    Some of those hours were previously invested in touring comparable properties in person.    Looking at photographs is a short cut.     

Apr 10, 2015 03:16 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Some homes are easier to price than others and I can often give a good ball park based on description and location.  But that is no substitute for good solid research.  Each property is unique and in different condition.  If I am pricing for sale it always takes some time.

Apr 10, 2015 03:25 AM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

Very good points! I do my homework and even take the potential seller out to see their current competition.

Apr 10, 2015 03:32 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Real Estate Broker

I also spend a lot of time on my market value analyses. And any time I have a seller who "argues" with me based on what some other agent told him/her, I ask if they provided as in-depth an analysis as I did. Virtually always, the answer is no.

Apr 10, 2015 04:03 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Real Estate Broker

Karen Steed ~ that is a fabulous response! (And I'm stealing it from you, by the way!)

Apr 10, 2015 04:04 AM
Theresa Akin
CORPUS CHRISTI REALTY GROUP - Corpus Christi, TX

5 minutes for a CMA. I do cmas for buyer's and seller's and I can assure everyone it takes me a couple hours. I have taken buyer's and seller's out for comps and not often but i have. I have always felt if you take the time to do it at the first interview when the seller asks about putting his house on market, even if seller lists someone else, the you will have that information when it comes on market if you have the opportunity to represent the buyer's end.

Apr 10, 2015 04:04 AM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

I agree.  Pricing a property is becoming more difficult by the day, as there are few comps.  I am grateful for Dallas area appraisers who share information with Realtors.  My heart aches for buyers who go through multiple attempts to have a contract accepted by a seller. 

Apr 10, 2015 07:13 AM
Christi Farrington
Dagny's Real Estate - Wilton, CT
~ Your representative in Fairfield County, CT

An accurate home analysis is definitely NOT a five minute process!

Maybe the Seller needs to 'see' their competition in the price range for which they are 'hoping' to sell their house.  

 

Apr 10, 2015 07:17 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

These automated cma's often are not very helpful.  As they seem to mention "this is just a starting point"

Apr 10, 2015 01:52 PM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

It takes hours to do a Market Analysis properly - it is truly one of the most important services we can perform.

 

Apr 11, 2015 01:17 PM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Karen Steed I would also like to borrow that question - it is hilarious and spot on at the same time!

Apr 11, 2015 01:18 PM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

A competitive market activity report and a competitive market analysis report are two distinct and unmistakable documents. Some agents use the term analysis when they only generate an activity report. So, IMO, how you position yourself as a professional will determine how and when you use  and illustrate the two. 

Apr 11, 2015 03:35 PM
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

5 Minutes.

Can't bake a cake in 5 minutes, and it's value is much less than a house.

Would you eat the chicken I prepared....in 5 minutes?

There are a lot of things that simply must take longer than 5 minutes to produce an acceptable result.

However, the conventional concept of CMA preparation of pouring over MLS descriptions and adding for a shed and subtracting for garage laundry, adding for new HVAC and subtracting for cosmetic condition is equally unacceptable and INACCURATE. But, it's the way we've always done it, very subjective.

Promising the moon while knowing the seller has real counter-intentions is where the problem begins. Seller counter-intentions is a real indicator other obstacles are in wait should you actually pull off a miracle.

There is little difficulty in sharing with the seller the results are EXACTLY as I predicted.  As long as my objectives and the sellers objectives are not in conflict, we should co-exist peacefully. It is when the agent attempts to IMPOSE their will that "the hardest thing" starts to emerge.

 

Apr 12, 2015 12:41 AM
Dorte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Peter,

A 5-minute CMA is worth exactly what you paid for it.

Apr 12, 2015 01:17 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

When it comes to assessing and interacting with Real Estate values that enter into the hundreds of thousands of dollars....5 minutes is not time well spent

Apr 12, 2015 11:25 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

 Peter - It can be hard to value a property, and I can't see doing a good job of it in just a few minutes.

Apr 13, 2015 03:32 PM
Winston Heverly
Coldwell Banker Access Realty - South Macon, GA
GRI, ABR, SFR, CDPE, CIAS, PA

Hi, I can't believe I missed this post, great read on todays hot topic. Thanks for sharing.

Apr 16, 2015 12:37 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

So true!  If we don't do a thorough enough job, we could be costing the sellers money, selling for less than market value.  If we offer a price suggestion that is too high, we could be costing them time on market.  Great post!

Apr 17, 2015 12:00 PM
Ernest Villafranca
Better Homes and Gardens Real Estate - Oakland, CA
3923 Grand Ave. Oakland CA, 510-418-9443

I check current prices, and prices three months back. If I could only check prices three months forward.

Jun 06, 2015 01:38 AM