Empower better pricing conversations

“How should I price it?”

“How much should they offer?”

These could be the two most important questions agents face. 

Traditionally, agents have relied upon pulling comps and creating CMAs to establish a property’s value. This takes a ton of time. It also relies on a static, dated way of analyzing data.

I was recently talking to a broker friend of mine about how his agents value properties and how inefficient he found the process. Then we dove deep into how agents have conversations with their clients about property values.

His contention was that, as an industry, we have not done a good enough job of coaching agents on how to discuss property values. Furthermore, for most consumers, it’s kind of a mystery which is why, among other things, consumer-focused AVMs (automated valuation models) have been such a hit with consumers for years.

If an agent is relying on a consumer’s belief in whatever number that AVM spits out, or will take the listing at an inflated price just to be able to say they got it, they are doing themselves, and their client a huge disservice.

AVMs are statistically based computer programs that use real estate information such as comparable sales, property characteristics, and price trends to provide a current estimate of market value for a specific property.

What AVMs can’t do is provide the property intelligence and market insights that a good agent can bring to the table. Hence, why we believe it is critical for agents to be given the tools to empower them to have more substantive conversations with their clients.

The goal should be to arrive at a price that is good for the seller and buyer, and a price that will reduce the amount of time the property is on the market.

In today’s environment, where prices, in many markets, have become inflated due to lack of inventory and a huge amount of consumer mobility, the foundation for these conversations cannot be forgotten. Furthermore, the more confident an agent is in having these conversations, the more they will be viewed as the trusted advisor they strive to be.

One of agents’ core needs is accurately setting the bid/ask price on homes, yet they do not have a simple and sophisticated system for doing so. 

It takes a lot of time to research, compile, and price properties. Many agents either don’t have or don’t take the time to do the exhaustive work it takes to create and deliver the property intelligence and market insights consumers expect and deserve.

Consumers receive a "high-touch" and transparent experience with most everything they do. This is why it is so critical they receive the same when it comes to pricing properties.

Pricing conversations mark the beginning of the home sale or purchase process and will set the tone for how the experience with a particular agent will likely be.

There is a growing trend of agents who take this matter very seriously and are willing to invest the time and resources to meet consumer expectations. In our view, those agents will have a distinct competitive advantage over those who keep doing things the old way.