When looking for a real estate agent to list your property, are you surprised by how many there are to choose from? How do you pick the best one? Wise sellers should choose a Realtor who holds the distinguished Pricing Strategy Advisor (PSA) certification awarded by the National Association of Realtors.
Five reasons for working with a Pricing Strategy Advisor:
1) A Pricing Strategy Advisor is well-educated
To earn a PSAcertification, Realtors must pass a comprehensive exam after completing an in-depth course on comparable residential valuation, market analysis, and the proper way to work with appraisers.
2) A Pricing Strategy Advisor uses science and data
A PSA utilizes RVM (Realtors Valuation Model) and RPR (Realtors Property Resource) software to identify appropriate comparable sales. Next, the PSA uses Paired Sale Analysis to make appropriate adjustments for differences between each selected comparable and the subject property, the same way that appraisers do.
The CMA or Comparative Market Analysis is the final report which displays the result of applying all these tools and methodologies. The result is a scientifically determined fair market value price range from which to choose an appropriate listing price.
3) A Pricing Strategy Advisor can explain the science behind pricing
A PSA is qualified to answer client questions about the final CMA report and explain how the scientific pricing process works. This takes the mystery out of pricing for the client.
4) A Pricing Strategy Advisor knows how to work with appraisers
Appraisers do not work for either the seller or the buyer or the agents involved; they work for their client, the lender. When an appraisal valuation comes in lower than the agreed-upon sales price, it is improper to argue directly with the appraiser. There is protocol that must be followed. A PSA understands this protocol and submits a formal written appeal to the lender, which includes carefully-prepared evidence to justify the agreed-upon sales price.
5) A Pricing Strategy Advisor abides by the Realtor Code of Ethics
Realtors must adhere to both the Realtor Code of Ethics as well as the Uniform Standards of Professional Appraisal Practice (USPAP). This means, for example, agents must not deliberately price properties below or above the CMA-determined fair market value range unless there exists a valid documented justification for such an exception.