Carolyn Vernon, Branch Manager at Barfoot and Thompson Remuera believes that initial appraisals can make or break the sales campaign that follows.
Everyone loves guessing what a house is worth. Neighbours, friends, family. They’ll all have an opinion. But even real estate professionals such as agents and valuers will give you different price estimates too.
The question is, how should you handle different input from different people?
Carolyn Vernon, Branch Manager at Barfoot and Thompson Remuera, is a firm believer that what matters is a realistic market valuation.
“No agent has a crystal ball. But you should expect a detailed and carefully considered Comparative Market Analysis. Which is why our agents spend a lot of time up front, working through relevant market data. When the groundwork is complete, we present a transparent assessment,” says Carolyn.
But what if a competing agent says your home is worth a lot more?
According to Carolyn this happens more than you might think.
“Unfortunately, the tactic of attracting vendors with an inflated appraisal can backfire. Once the listing is secured, vendors are often pressured into dropping their preferred selling price to where the market value actually sits.”
“It can also mean that you’re missing out on the right buyers from the outset, resulting in a drawn-out campaign. This leads to frustration. Even worse, it damages the trust between agent and vendor.”
At Barfoot and Thompson Remuera, they do things the other way around.
“Rather than throw out a big number (i.e. bait), our agents will present an estimated value that reflects our in-depth research. If that estimate proves conservative, our vendors can happily increase their sale price expectations later on.”
“This approach also allows us to focus on the things that make the biggest difference for our vendors. If we can increase competition between the maximum number of buyers, the result will always take care of itself.”
