Opinions of Value

2006/11/16 Originally published in the Vernon Morning Star.

Recently a loyal past client of mine called me to tell me he is being transferred to Alberta. He tells me that he has called me first as his previous real estate experience with me was more than satisfactory. All in the same breath he tells me he will be seeking the opinions of value from two other Realtors he does not know. In fact, has never met them. One of them was recommended to him by a friend, the other just a name out of the weekend real estate ads. Somewhere he was advised that he needs three opinions of value.

What sellers sometimes fail to realize, is that the data used to establish market value is virtually identical from one Realtor to another .... even from one certified appraiser to another. The real estate board keeps excellent records on the sale price of every property sold through the M.L.S. system, which is the vast majority of sales. Appraisers occasionally hear of a private sale that Realtors may or may not know about. But other than that, we are all consulting the same library of sales information. After that, it is about how we compare the prices of homes that have recently been sold, to the home that is being evaluated. How the data is interpreted by the realtor or appraiser is what creates the different evaluations.

But, the real fact is it's the buyers who set the sale price, not the Realtors. Buyers look at all available properties in their chosen locations and price range and make informed offers. When buyers are looking at homes it takes them no time at all to establish whether or not a home is overpriced.

So, when choosing a Realtor don't choose according to the highest price expressed by Realtors. Instead, ask yourself how well you know them? or were they recommended to you by someone you respect? Then, study the capability of the Realtor. How dedicated are they to providing the best coverage and advertising? What are their sales achievements? How is their track record? The broader the coverage the more potential buyers are reached and the better the likelihood of a seller getting a top price.

Competence and lots of energy in handling buyer inquires and generally doing a proper job reaching the buying public is a much more sensible reason for choosing a certain Realtor to market your property....not which Realtor gave the highest evaluation. Of course it is very possible the Realtor who provides the highest opinion of value could be the one who will be the best marketer, but it is not necessarily so.

Jane Field works with RE/MAX Vernon. Jane has over 30 years experience in the Real Estate business. To suggest topics for future articles or to ask Jane questions, email or call 503-3755.

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