The Broker and the BMA Dilemma
When a transferee has been offered a move, they not only have to evaluate and investigate their new potential location, they have to take into consideration that they will need to sell their existing home. That’s when the Broker Market Analysis (BMA) process kicks in. Typically two brokers will be selected by the relocation management company (RMC) or corporation to give their opinion of the home’s value, marketing time, market considerations, etc.
The corporation and the relocation company depend heavily on the unbiased opinion of the property, neighborhood and the competition to assist the transferee through the home selling process. Agents spend hours meeting with the transferee and their family, viewing the home, researching available comparable properties and analyzing the sold historical data to provide the most solid recommendations possible.
In today’s market, with inventory flying off of the shelves, it seems we can just slap any price on a property and it will sell. Buyers are eager, but they aren’t dumb. An experienced agent knows it is a fine line between listing a property at its value and over listing it based on the hope someone is willing to pay more than its worth. The BMA tells the story of the property, but the agent will also speak with the transferee about their marketing strategy, their company, their experience, and why they are the best agent to sell the property in this environment to get the highest sales price. Having an agent who is a strong negotiator will ensure all offers are given the attention they deserve.
It’s not just about the data
We can’t ignore the technology, such as Zillow’s Zestimates and other look alikes, that exist out there that could give the homeowner a general sense of what their home value might me. Their data continues to improve and they have a median error rate of about 7% in ‘off market’ homes. The challenge with information that is only based on algorithms and data on the property available on the MLS, in public information and user submitted data, is that it can’t see through the walls. And it is generated without context and assurances of reliability. There is no one to interpret the data and to take into consideration the interior condition of the home or unique situations that are occurring real time in certain markets and neighborhoods.
While floorplans may be alike, what the homeowner does to the property inside those walls is what determines a big part of where the value lies. The same floorplan in two dramatically different neighborhoods can swing values substantially. If one sits next to a freeway and one is in a quiet neighborhood, the astute agent will value accordingly. Same goes for those elegantly remodeled and cared for versus a hoarding situation.
The relocation agents have trained and studied what makes a great BMA. They want the listing and today agents are earning their commission more than ever by dealing with many multiple offers and aggressive buyers and their agents. A strong listing agent knows how to juggle multiple offers and act in the best interest of the seller to get the highest value and the most solid buyer. They know what to do if the property doesn’t appraise and which contingencies should be removed.
Where the value lies
Another value of the Broker Market Analysis’ completed by a trained relocation agent is that they are hyper aware of the nuances in each local market. They know what buyers like, having spent years honing their craft. Values are changing in a very fluid manner in markets that have extremely low inventory. The relocation agent also understands the dynamic of what a homeowner is dealing with as a corporate transferee and what the corporation has invested in this process. They are lucky to have the additional set of eyes in the relocation department to provide their opinion and quality check before it heads out the door. It becomes a team effort, so it is not performed in a vacuum. Hopefully, the current process to remake of the existing WERC BMA form will modernize the process and make it even easier and more insightful.
Why feedback matters
Doing the BMA doesn’t ensure that all of that work will be rewarded with the listing. It may be met with a cut and pasted standard email from the relocation company saying the agent did not get the listing with no further explanation. I suspect the RMC doesn’t really care who gets it as long as one of the recommended agents was chosen. The rejection could be based on many things other than the quality of the BMA and the recommended value such as the transferee just didn’t feel a connection with the agent or they didn’t feel they chose appropriate comparables or they didn’t feel the agent had enough experience in the neighborhood. Sometimes they just choose the one that recommends the highest list price. Or it may be that the agent never really had a chance. They had requested an agent and the second BMA was just to act as a benchmark. It could also be the RMC that steered the transferee one direction or the other or they may actually make the decision for them with input from the transferee and the corporation. But the challenge is we may never know the real reason because the agent and the department will typically not get any direct answers from any of the stakeholders to get their feedback.
Value what they bring to the table
The reason the feedback from the RMC is so important is we can’t improve unless we know the reason why we weren’t chosen. Agents are tough. They don’t get offended easily and they are accustomed to being ghosted, so whatever they are told, they will take in stride. But they are also busy. If they feel that they never had a chance and no feedback is provided, then the best agents may turn down BMA’s because they are too busy to take the time to complete them. This means the relocation department may need to turn to agents with lesser experience that need more training and monitoring. But it means more staff in relocation is needed to monitor the process when the margins are already very thin based on the referral fees being charged.
It all comes down to the RMC being willing to take the time to speak to the transferee or to send them a short survey about why they preferred one agent over another. The relocation department and the agent deserve to know so they can grow and improve. And if the agent never had a chance due to a requested agent situation, then they should be paid for their time just as an appraiser is paid for their time.
Communication creates a strong team
That feedback may determine if the agent remains on the team or if they need additional training. The relocation agents are an extension of the department and if something happened that can be corrected, they and the relocation department deserve to know. RMC’s understand feedback. They survey their transferees about their services and staff interactions. So they should take it one step further and find out why an agent wasn’t chosen to list the property and pass that information a long. It will make the agent teams stronger and ensure that the broker going into those homes is at the top of their game as they act as an extension of the RMC and corporation The agent and department want to be the best they can be for everyone involved. It’s another step towards successfully getting a family happily in their new job and new city.
“Feedback is the breakfast of champions.”– Ken Blanchard, author, business consultant, motivational speaker
