Quality vs. Quantity

What’s the difference between a “retail” Realtor price opinion and a “wholesale” price opinion? (my terms)

With the former, the listing agent casts a much broader net, issuing a blanket invitation to, say, all their office colleagues to view the home at a particular time.

The catch?

In practice, the Realtors who show up are often the least qualified to opine on the value of the home.

So, they either aren’t very busy or experienced — or, they’re lured by the offer of a free lunch (sorry, but it’s true).   

By contrast, a “wholesale” price opinion is when the listing agent solicits the opinion of perhaps 2-3 colleagues who know the area best, then meets them at the home to tour and discuss it with them.

As you might guess, at least in my (Realtor) opinion (sorry) . . . the latter strategy is more effective.

Quid Pro Quo

What’s in it for the Realtor offering the opinion, who must find an extra hour or so in their busy schedule — not to mention share valuable market knowledge with a potential competitor?

Two things:  1) goodwill and an IOU that they can call in when they need help pricing a listing; and 2) a “heads up” on an upcoming listing that one of their Buyers may have an interest in.

Of course, the value of such an IOU (Realtor currency?) varies with the skill and experience of the colleague.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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