A real estate agent that is certified as a Pricing Strategy Advisor can go a long way in helping you successfully sell any home that you have inherited, such as a property in probate, a property that was passed to you through a quit claim deed upon the death of a loved one, or transferred to you in a trust.
All real estate agents aren’t created equal. A simple premise, but a powerful statement.
Unfortunately, it can be hard to prove that on outside appearances. I would equate asking for a real estate agent referral or recommendation is almost like looking at all of your options for salt in a grocery aisle.
Sure, there are some noticeable differences, like Himylan pink salt versus Kosher salt. But, how does a certain salt product influence the taste of food?
All of the salt looks like a commodity. So do real estate agents.
Luckily, the National Association of Realtors has created certifications and designations, which help potential home sellers determine if an agent is qualified to help them.
One such important certification is the Pricing Strategy Advisor certification. Today, I want to share with you three reasons to work with a real estate agent that holds a certification as a Pricing Strategy Advisor.
Much of what I am going to share can be applied to the average home buyer or seller, but this article will be written from the perspective of selling a home in probate and inherited homes — as that is the market our business mostly works in.
Less Time on Market
In real estate, there is a simple premise: a home priced over market value will sit on the market longer than a home that is priced at market-level or below it.
The National Association of Realtors published a great visual pyramid to help educate real estate agents and home sellers on the impact price has on visibility (Figure 1).
Figure 1: Impact of Price on Visibility
According to Figure 1, a price that is 10 percent above market value will result in only 30 percent of potential buyers looking at the property. This is in contrast with a 60 percent visibility rate for a home priced at market value.
That’s a 50 percent decrease in showings for only a 10 percent list price above market value. So, it’s critical to get the pricing right. A high price will result in too few showings and a longer time on the market.
Then, add on the fact that if you’re selling a home you inherited through an estate or probate, the home might be outdated. This will lead to a lower number of potential buyers.
When selling a probate home, every potential buyer is critical. The odds become stacked against you if the home’s list price is too high above the market value.
A longer time on the market can increase costs. For the average homeowner, this might not be a big deal.
As for a lot of the clients I work with, it is. A longer time on market means increased costs to the estate and often lower proceeds from the estate once it is all settled. It means having to go over to the house and mow the lawn or take care of it.
But how are you supposed to know if your home is being priced right?
You’re relying on the expertise and qualifications of your real estate agent or realtor. An agent being qualified to price homes accurately just because they have their license is NOT a safe assumption.
Your best bet is to find a real estate agent that has a Pricing Strategy Advisor certification. This way, you know you are working with a real estate agent that knows how to more accurately price homes. They know how to more accurately value your property — whatever the condition.
A Pricing Strategy Advisor agent will be able to lead you to an ideal valuation of your home that will help it sell in the appropriate time while maximizing both profits and time on market.
They Can Get You Maximum Value
There are three basic pricing strategies when it comes to listing your home. You can: list too low, list too high, or list at the market value. Let’s explore each of these situations and why working with a Pricing Strategy Advisor is important.
Before I dive in, I feel a need to clarify what I mean when I say price too high or too low. The idea of pricing too high or low is relative to the market value of a specific home. It’s not about a specific price point.
For example, a one million dollar home with a list price of $800,000 would be priced too low. A home worth $100,000 priced at $150,000 would be priced too high.
Listing Too Low
Listing too low has several drawbacks, namely, leaving money on the table. With a below market price, you will get a lot of showings on your home. However, you will likely get less than your home’s true value.
This can be a strategy if you’re looking to sell the home quickly.
For example, you can sell your home to a cash investor who can close in two weeks. You often don’t have to prepare the home for showings or do anything to it.
Did you know that we buy homes in cash? It’s true. You can learn more about our cash offer service.
In this situation, your home will likely sell somewhere around 50 to 90 percent of the market value.
If you’ve inherited a home or have a home that has been transferred through probate or a trust, it may be an option you want to consider.
Listing Too High
For a majority of home sellers, this is a bad strategy. Double so for people who have inherited an outdated home.
This strategy only works when the real estate market is very hot (like it has been in 2020 and 2021), there are few properties listed for sale, and your property is in top-notch condition.
For most of the clients we work (inherited homes, probates, estates, trusts, and conservatorships) with and those who come to our site, they usually fail the third condition; the property is less than top-notch.
The average home we see was often last updated in the 1970 to 1990s. Even if the property was well taken care of (i.e. it has good bones), it’s not considered top-notch by many buyers because of the lack of updates. For example, mint green carpet, outdated kitchen fixtures, etc.
When a property is priced too high, many potential buyers will choose not to see the property, so the home sits for a long period of time — relative to the market, of course. If it’s not sold within the average days on market, buyers start to give the home a negative stigma.
Resulting in the property sitting on the market awhile and a need to reduce the price to attract buyers. Unfortunately, it’s not uncommon for these homes to eventually sell below market value.
Price Just Right
This is the ideal scenario to balance time and value of your home. To succeed at this, you will need an accurate method for determining the value of your property.
This is where working with a Pricing Strategy Advisor real estate agent comes in handy. They can determine a more accurate value for your property and home than the average agent. They are certified and trained to understand real estate values in a market.
This can be challenging to do for a home that is in probate or a home that has been inherited. How do you accurately adjust for the condition? Any conditions? That’s why it’s also critical to work with a probate real estate agent.
Less Surprises In The Transaction
Let me propose a question: what good is a high offer if the property doesn’t appraise? You either need to lower the price, the deal falls apart or the buyer has to come up with the difference.
In my Michigan real estate market, it’s rare for the buyer to come up with the difference. Sure, it might happen for you if you are selling a property in hot real estate markets like Seattle or San Francisco.
For the clients we tend to work with (probate, trusts, and conservatorships), it means they either reduce the price to the appraised value — in other words, they sell it at market value — or the deal ends up falling apart.
To some, this can create a surprise and headache. With an accurate price from the beginning, you can be aware of any potential hurdles.
Working with a Pricing Strategy Advisor real estate agent you can get a more accurate price.
And whichever listing strategy you go with, you won’t be surprised by something like an appraisal. For example, if you list too high and get a high offer, you are aware that the home may not appraise. If you list at market value, then you know it will appraise and you maximize the value.
Either way, it’s a win. Understanding the value upfront can ensure a smoother transaction once the offer is accepted and you are under contract for your property.
Conclusion
A real estate agent that is certified as a Pricing Strategy Advisor can increase the odds of a successful outcome when you are looking to sell your property. We believe this is even more true if you are in a situation that is a deviation from the average and traditional home seller. For example, people that inherited a home, a property that is in probate, transferred through a trust, or you became the conservator of your parent’s estate.
The right real estate agent will help you maximize the value of your home, while selling it in the best timeframe, with the least surprises.
Don’t settle for average. Look for a real estate agent that is a Pricing Strategy Advisor.
Good news, we are Pricing Strategy Advisors. At the Dolinski Group, we help clients in Michigan (Metro Detroit and Lansing, mostly) who have inherited a home through various legal vehicles and need to sell it. Example situations are: probate, conservatorships, mom moving to a nursing home, or a home transferred from a parent through a quit claim deed.
We can help with probate real estate in cities like Lansing, Riverview, Trenton, East Lansing, and more. We can help you sell an inherited home or mom’s home in cities like Woodhaven, Wyandotte, and Okemos.
If you’re in this situation or a similar one, get in touch with us today.
