I was cornered the other day by someone wanting me to guess how much their home was worth. I politely said that I couldn’t quote them prices without doing some research, but that I’d be happy to pull some comparable solds for them.
Oh, no, no, no, she says. I just want to know how much you think it’s worth.
Here’s the thing: I will never quote you a price without research. Because - even if we’re just chatting at a party - I’m potentially liable for that price. So if I offhand tell you that I think your home is worth maybe $350,000, and you go sell it to your neighbor for that much, who immediately resells it for the fair market value of $425k, then guess who you’re going to be very angry at?
The crazy thing is, as soon as I open my mouth and give you any kind of advice, I’m potentially creating an implied agency relationship with you, even if we have no formal agreement. And I know most reasonable people are just looking for a little conversation, understanding we’re having casual chat, but there’s the potential that someone will take my offhand comment as firm advice.
So please - if you want me to guess the value of your home, just let me do a little research for you. I’m happy to do that. Really. It’s no problem. And I’m not even going to hound you to sell it afterwards. I promise.
May 23rd, 2008 at 7:55 pm
It’s kinda like when I hear “what’s your rate?” I calmly shy away from that one and don’t proceed without getting more information first.
May 24th, 2008 at 11:36 pm
You’re smart. They wouldn’t be served well with a guess. Perhaps they are looking to reinforce their uninformed opinion that their property is worth more than it really is. And if you give them a number that’s lower than reality, they can discount you and boost their own ego based upon their superior appraisal skills.
I may have answered differently and given them a wide range like between $300K and $400K, but could stick my foot in my mouth. They have to respect the fact that you are more professional than that.