Why Do Realtors Have Different Home Values When Doing Listing Presentations?

I have always thought that we all look at the same information. We all look in the neighborhood the home is in or the surrounding area if it is not in a subdivision. So, why do we all come up with different values of what the house should be on the market for?
Well, I concluded after a listing presentation the other day; it depends on how bad someone wants the listing, how hard they are willing to work, and what is fair. The couple I met today had interviewed six different Realtors before I got there. They were interviewing one more after I left. When I got done with my listing presentation I asked if they had any questions for me. What came next shocked me…
They asked how come we (being the Realtors) have come up with differing prices for their house ranging in the $210,000 range all the way to $280,000 range. I had a look of shock when they said that. I have had listing presentations in the past where the couple told me they liked me but the other realtor was willing to list it for more… I do not take over priced listings in this market….it is to hard to get them sold today at fair market value.
They told me that they have not discussed the values with any other Realtors. So, I asked why me? They said you seemed to be the most thorough in your evaluation of the comparable properties and your justification of your pricing falls in line with what we expected when we started this endeavor.
After perusing through the listing market analysis I noticed a trend based on the pricing strategy. The ones that were telling her to list for a higher price excluded key comparable sales that would not support their pricing strategy (and 2 of them sold within the last 60 days). Ones on the other end of the spectrum used limited properties that showed only bank foreclosures and short sales as comparable (this home is not a short sale). Thus that is how they justified the lower end of the pricing spectrum.
A few of us used both and adjusted accordingly. However; I also pulled tax records and other data to support my price….I was shocked to find out that I was the only one of the eight Realtors they had met so far that did that. I also provided them with a market strategy and pricing matrix based on how long it would take to sell their home. I also was the only one that did that.
After spending another two hours deciphering the data and explaining what some realtors left off and others added to justify their price they said they now understood….I walked away with the listing in hand and a client who realized I was looking out for their best interest….not mine.

Dave diCecco
Realtor/Broker
www.davedicecco.com