“Overpriced,” thought Ryan Lundquist, a certified residential appraiser in Sacramento, California. He’d just received an appraisal order and, thankfully, his last impression didn’t match his first. In the end the home received top dollar.
But, he was puzzled. Finding that the property was worth slightly more than the selling price, he wondered why the listing agent offered no information about the property until he asked for it. Didn’t he want to ensure top dollar was received for this home?
Unfortunately, many agents have been intimidated by, and sadly misinformed about the 2010 Dodd‐Frank Wall Street Reform and Consumer Protection Act, assuming that they can’t communicate with an appraiser under any circumstance.
It’s not against the law to contact and converse with the appraiser, unless the goal is to bribe or intimidate him or her.
In fact, Dodd-Frank specifically states that you or “anyone with an interest in a real estate transaction” can ask an appraiser to:
The law does not, however, provide for a “full-blown conversation or discussion with the appraiser,” cautions Vic Knight, certified general appraiser and former president of the North Carolina Association of REALTORS®.
“The implication is that the flow of information is essentially one-way,” he continues, “from the broker to the appraiser.”
Knight offered an often overlooked point brokers can utilize to help the appraisal process. Writing a listing description is considered part of the marketing of a home for sale. What most agents don’t think about when penning the description is the appraiser, who will also be part of the audience reading it.
Knight recommends that you keep in mind the following tips as you enter the listing into the MLS:
Point out the “quality of finish in ‘below-grade’ living areas, attics, bonus rooms, decks, porches, etc.”
Related: Featuring Your Listing in the Best Light
Knight suggests that agents compile a package of documents and either leave it at the property for the appraiser to view, or deliver it in person, by meeting the appraiser at the home. Include the following documents in the package:
The latter is important information for the appraiser, according to appraiser Tom Horn of Birmingham Appraisal Blog. “Providing proof of multiple offers does show them that more than one person is willing to pay a certain price for the home,” he suggests.
It’s also important that you are very specific in your description of the home’s upgrades. Rather than stating that the bathroom was “completely remodeled,” list what was replaced, what it was replaced with, the date the work was performed and the cost.
For example, Lundquist suggests, on his Sacramento Appraisal Blog, “Bathroom remodel: new tub; travertine tile work; cherrywood cabinetry; Kohler sink, faucet, etc. …/Installed 2009/$15,000 cost.”
Lundquist offers some tips on how to interact with the appraiser within Dodd-Frank guidelines.
These useful tips help agents avoid the appearance that they are pressuring the appraiser, a violation of federal law. Any statement that can be perceived as an attempt to steer the appraiser to the value you want for the home can get you into hot water.
Examples of these are frightening because they are so commonly (and innocently) used. Banish them from your interactions with appraisers:
To avoid trouble, keep your opinions, feelings and thoughts to yourself. Communicate only the facts about the home and neighborhood.
A listing agent’s job entails far more than marketing the home and negotiating with the buyer’s agent. Underlying all of the duties, however, is the duty of “care.” This includes ensuring your client gets the most money possible for the home.
This article is not intended to serve as legal advice and should not be used as a substitute for consultation with an attorney.
Related: Pricing Makes Perfect
Need assistance? Contact our customer support team at 866.405.3638. They’re incredibly knowledgeable, and excited to help get you succeed!
Success begins with the right mindset. Real estate sales is not just a job; it is a business. A business that requires planning, organization and systems to maintain balance, accountability and forward momentum. The following details the 3 steps to epic success.
Planning is critical to realizing your goals, generating consistent income and creating an exit plan. The proper exist plan ensures you have a valuable “book of business” that you can sell when you are ready to retire. Your plan should:
Be sure to share your plan with a manager, coach or partner so that you can set up a system of accountability.
In today’s competitive arena, effectively marketing yourself and your business requires both consistency and laser focus.
Countless agents send single marketing pieces to thousand of consumers, with no intention of following up. This approach is a waste of time, energy and valuable marketing dollars.
The truth is, you should be in contact with your sphere of influence at least every 30-45 days. One month, send a postcard, letter, newsletter or flyer. Many of our customers find the Listing Inventory Series, Content Cards, and Market Dominator among their favorites.
The following month, call with a friendly event reminder, helpful hint, or just to say hello.
During the third month, arrange to see them via a networking event, social gathering or in-person visit. Drop off a small token, informational item or card. Then start the “rotation” over again.
Such consistency creates vital ‘top-of-mind’ awareness. This awareness becomes “the key to the kingdom” when growing your referral base and creating a reliable income.
Gone are the days when agents could afford to take a “shotgun” approach-casting a wide net in the hopes of “catching a few”.
Response rates increase dramatically when you speak directly to the needs and interests of a particular group.
Wise agents seek out demographics or geographics that they relate to or have a history of success with.
The more comfortable you become speaking to a particular group or segment, the more you become recognized or thought of as a specialist in that field.
Related: Niche Marketing and the Law of Attraction
Without systems, you’re like a hamster on the wheel-spinning without really getting anywhere. Systems are the only way to maintain the delegation, automation and streamlining that will continuously work on your business. Systems allow you to:
What systems should you have in place?
The success mind-set requires dedication and a commitment to the activities that earn you top dollar and allow you to “feed” the career you’re building.
Related: 3 Tools That Drive More Business
Need our help? Contact our support team today at 866.405.3638. They’re more than happy to help you.