In our line of work, we work with a lot of homeowners along with many real estate agents. CCS works with some of the best real estate agents around. We found this article in the Green Bay Press Gazette on Sunday, April 15th and thought it would be a nice one to share with homeowners looking to buy or sell. After all, your home is typically your largest investment.
Excerpts are taken from Dear Monty:
Reader Question: I envision the real estate service is delivered differently than a physical product. I can touch a product, examine it, use it according to instructions to “test” if it works. Outside of the legal documents, much of the real estate service is oral. I cannot “test” it in a traditional sense. Can you share examples of specific “tests” to perform to pick one real estate agent from several?
Monty’s Answer: Much of the communication that takes place throughout the real estate process is oral. The telephone and personal conversations with real estate agents often take place during the most critical events, such as a home showing, negotiation or a listing presentation.
In addition to the legal documents, there are other physical “deliverables” that play essential roles in the real estate process. Two notable examples are the competitive market analysis (CMA), a written document describing the agent’s opinion of your home’s value, and specific multiple listing documents, such as property data sheets and statistical market data.
Two Big Reasons Testing is Important:
Separate opinions from multiple agents will produce different results thus, the varying viewpoints will allow you to make a more informed decision.
The other is that there are masses of marginal agents (un-trained, unethical, and/or incompetent).
When to Test:
Testing should occur during the process of interviewing the agents you think you’d like to work with. The screening process mostly involves requesting specific MLS data, reviewing their CMA deliverable or following up on a promise or a statement they made.
The CMA – Without disclosing your opinion of the value of your home, ask each agent for their opinion of what your home is worth. You want to know the best price the market will bear and the lowest price you should consider. You want a range of value in print.
MLS Market Data – Tell each agent you want MLS market data in your price range and your area. Ask them for actual MLS data that shows how many homes similar to yours have sold in the past year. Then ask them how many listings have expired or are still for sale.
Agent Statements – Each agent most likely will share the reasons they are the best choice to handle your listing. If you take notes and follow up, you can verify their words and follow-up ability.
For the article in its entirety, and more details of the testing examples shared, please go to the Green Bay Press Gazette link here.