Hi Liz,
Just checked in and saw your answer to my earlier question.
If you're in Chatham NJ, send me an email. I'd be more than happy to give you my opinion.
Chatham hasn't been as hard hit as many of the other towns because of the rail service into Manhatten.
Jackie@JacquelineHaynes.com
Thanks,
Jackie

Liz:

When Realtors provide you with a CMA (comparative market analysis), the numbers should be nearly the same. Unfortunately, many agents are simply trying to get you to list with them (as Brandon mentioned earlier) because a sign in your front yard will generate business for them; in the form of buyers who may not buy your house. But that buyer's "sign call" is now a lead for the agent trying to sell your home.

So when agents provide you with a price for your home, ask to see which "comps" they used to determine that price. Be sure that they are comparing your home to those that are truly similar (year built, sq.ft., same neighborhood, same features such as countertops / flooring / fixtures, overall condition of the home, and MOST important...sold within the last few months). If the Realtor has done their job, then a comparison of apples to apples should give you a good idea of what your home is worth. And the same thing goes for the Appraisers as well. Ask to see which comps they used as the measuring stick for your home. They should be the same as what the Realtors were using.

Finally, the process of appraisals is more of an art than a science. And it is common to have a range of values which can all be applied to your home. Because you have to remember that the sold price of a comparable property is just that....the sold price. We typically don't have any additional information that may have skewed the true value of the sold property. For example, the seller's could have sold their home to family so that the price was unrealistically low. Or there might have been a bidding scenerio with multiple offers competing for the same home; which can often drive the final sales price well above the original asking price. This will throw comps out of balance too. And finally, with the number of foreclosures on the rise in some areas, the final sales price of a foreclosed "short sale" property might have been accepted just to satisfy the lender's requirements to get the home sold. This too can throw true appraisal values out of whack.

Bottom line, when pricing your home...the more information you have gives you a better (true) picture of value. Don't just take someone's word for it, ask to see the proof in the pudding. Or in this case, the proof in their pricing.

Good luck.

Liz,
My advice in interviewing an agent somewhat addresses this issue. It's long winded, but could help.

In choosing a Realtor possibly the first thing I would look for is some letters behind the name. These do lend some sort of creditability. Certainly having a referral to him or her is a plus, but is certainly not a sure thing. The agent that was referred to me by three friends was an absolute disaster. As far as choosing one on your own, drive around the neighborhood and look at signs to find out what brokerages are represented and look their site up on the web. Go to the agents roster and select a few. I would try to find the Realtor's listings on Realtor.com and see whose listings are the best described with and are featured listings with multiple photos and a virtual tour. From those use the criteria below. Some of the criteria are obvious, and couple not so much so.

1. Your call to the agent was answered, or returned in a prompt manner.
2. The agent showed up on time for the appointment, and was neat and professional in appearance.
3. Be sure to mention the names of other agents you have talked with, or will be interviewing. If the agent you are interviewing gives any indication that could be interpreted as a knock against the competition, he or she has failed on an important criterion. If, on the other hand, the agent is complimentary about his or her colleagues, that is a plus.
4. The agent should be prepared with facts and figures, marketing plan, and offer suggestions. When an agent says "This property is perfect. You don't need to do a thing to it," it could very well be a big red flag.
After finally finding four that have met all of the above criteria, of the four suggested listing price ranges choose between the agents that have the two in the middle. Of those two, choose the agent you felt the most comfortable with. There is a lot to be said about trusting your "gut." The reason I disqualified the one with the high suggested price is that it could be a good chance the agent is just giving the info that you want to hear to get your listing. Not a very honest practice. I threw out the low, based on the possibility that this agent is just looking for a easy and quick sale at your expense. However, easy and quick are not adjectives normally found used in this market. If all four or even three suggested prices would come in extremely close, just go with the Realtor that you have the best feeling about of the group.

ELV!S posted these great interview questions below on another thread. They should be of some help as well. As a supplemental question to ELV!S’ question about photos, I would ask if the agent uses a professional photographer.

• How many homes, of my type, have you sold? (recently, 6 mos, 1 year, 5 years)
• What is your list / sale ratio?
• What is your average "days on market"
• What is your marketing plan for my home?
does it include internet (where?), do you offer multiple photos, virtual tours, color brochures.
• Do you do open houses (why / why not / how often?)
• What is your price recommendation (why / how did you arrive at that / do you have comps to back that up?... do you have a "quick sale" price, and a normal sale price")
• What is your plan if I'm not under contract in 30 days / 60 days / 90 days ...etc....
• Why should I hire you? What do you bring to the table that's different than the myriad of other agents out there who want my listing.
• Will you offer a reduced commission (why / why not?)
• Are you a full-time agent?
• Do you practice dual-agency? (why / why not?)
• What do you think of Agent A and Agent B (the two other agents you're interviewing)
• Are you planning any upcoming vacations or are you going to be unavailable, and who is your back-up when you're gone?
• What weekly communication can I expect from you?
and lastly
• Is there anything I haven't asked you, that you think I should have?
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A great post from a TruliaVoices Member named Alan in New Jersey brought this question to mind:
Will buyers have to sign in to view my property on your site?
The preferred answer is obviously “no.”

If there is even a remote chance of you eventually going FSBO, try to make sure that in the listing agreement that the Realtor protection period is short as possible. Try for 30 days, and that a protected list of buyers is given to you within a 3 business day period after the expiration of the listing. This should be written in the agreement. Finally, remember commissions are negotiable. Good luck.

Liz,

Honestly, you have to look at the numbers that the Realtors are giving you and be "realistic". If you're getting price opinions and the Realtors think that they're trying to get you to list with them, then I hate to say it but you don't always want to go with the highest price. It's not right but some Realtors may want you to think that they can get you more, just to get you to sign a listing agreement with them. We see this all the time, then they're beating you up for price reductions.

I have a saying right now with this market. "If you have an outstanding home that far exceeds your competition, then it should have an average asking price. If you have an average house, then it should be the lowest priced home". That's what will get your home sold in today's market.

I do a lot of Broker Price Opinions for companies and they want a sales price that will get a home sold within 30 days. Those houses are scattered all over and that's your competition right now.

I would hate to see you list with the highest price and then sit on the market for 2 years.

These appraisals were all done within a month of each other.

Hi Liz,
the problem is that home prices are currently dropping by around 1% per month.
When were your appraisals conducted?