Any appraisers here also real estate agent?

[Bobby Bucks]

Gotta love it when agents ask if I have a Realtor license, ain't no such thing.

I had an incident with a BIC about ten years ago and told him I didn't believe him and wanted to see a copy of his. When he figured it out he swore like a sea captain's parrot. That guy still hates me to this day. :icon_mrgreen:

 

[prasercat]

A lot of good points. It is definitely a different skill set and not like being a good appraiser - that is, being unbiased.

Perhaps, in certain ways, that is what I like about it. I'd like being an advocate for the client for a change (like when I was an investment consultant). No matter the profession or business, it is much easier to be successful being a crook than going for a win-win - I have always assumed that to be true, but having integrity is also a sort of valuable "niche" in any business. Having integrity while being effective at what you do also "sells".

I don't have any delusions or goals to be the "TOP PRODUCER" (since I am not just concerned with my own glory). However, being respectable, getting the job done well, getting referrals and doing a significant amount of business outside of appraising is my goal.

Knowing that I have another vocation to fall back on outside of appraising is also helpful in achieving some financial Yin-Yang (aka: diversified income stream).

Everything is sales to some degree. When we do appraisals, while we are being objective and unbiased, we are still "selling" our opinion with our data, results and explanations. My mentor years ago said, it is your job to not only arrive at the "truth" but to sell the client on that "truth".

I'm definitely not the quintessential salesman, where I'm only concerned with the sale or achieving the sale, since the outcome for the party at the other end of the transaction matters to me. Based upon my experience and that of assisting my wife with her business, I'm much better at marketing, which appears to be a "strength" of mine.

I find that most people, while they do want you to "tickle their ears" and to hear what they want to hear, also want to hear some truth and managing expectations should be a part of that "sale". It seems to me, managing expectations should also help prevent buyer's or seller's remorse.

 

[J Grant]

You might want to consider a niche end of the business, such as rentals...imo being a rental agent is a great way to build future contacts and referrels for listings. Many renters will buy at some point and those owning rental properties might sell at some point. Ditto for marketing REO properties or being a buyer agent for out of town buyers...see if you can develop a niche or use your appraisal background to help investor buyers, for example.

I have come to think of honesty as almost being a negative in RE sales, like having a speech impediment or other challenge...that's how little I think of the supposed integrity of even the agents that try to conduct themselves with some modicum of integrity. It is so different than appraising that agents and appraisers are almost from different planets but happen to deal with the same product (houses).

Like any other field, there is a reward for hard work and perseverance so that will go a long way as well.

 

[pat outlaw]

I had a brokers license for 20 years but never used it. About 5 years ago, I activated it so I could buy my own investment properties. I tried working with a few "regular" buyers and sellers; did not like it. Then I started working with a few investors who are less concerned with carpet color, etc. and more concerned with investment potential/return/profit, etc. The broker I work with does REO's exclusively and I also started assisting with her listings. It has not been a gold mine, but a very good supplement, and it gives my mind a chance to do something a little different.

 

[normando]

It's not possible to be both a great appraiser and a great real estate agent. You have to decide which job you want to be great at. When I'm an agent, I think like an agent and appraisal hat is off completely. Similarly as an appraiser, agent is off completely. I like being an appraiser because you get paid for the appraisals you do. As an agent, each transaction is different and may take longer or shorter and there's no guarantee you will get paid but the income potential is greater as an agent.

 

[prasercat]

It is true, Normando, I'm not a two headed cat. I don't even have a split personality to benefit me in this quest.

I think J Grant has a good handle on agent integrity issues; however, that is the nature of any group of sales people. But one can have integrity and be successful, but one must have some advantage over the silver tongued lying thieves to do so.

The "niche" angle or being different is always important in success, provided the niche and being different is in demand.

I actually got my real estate license years ago due to my interest in real estate as an investment (but only used it for myself). I made a couple investments (which changed my life) and then let it expire after I move out of State. So the investment angle is definitely a good "niche" which should benefit from my experience as a real estate appraiser, and investor, at least in terms of credibility.

The difference between talking with the real estate agent hat and an appraiser hat:

Real Estate Agent Hat: This darling and quaint home needs a little TLC and is ready for your personal touches. It is conveniently located for an easy commute to downtown.

Appraiser Hat: This shack hasn't seen any maintenance since Roosevelt was president, and the only fool that would buy it would be someone inclined to throw good money at bad since the house has too much incurable obsolescence; and be stone deaf because it backs to a major highway.

 

[J Grant]

PraserCat, enjoyed your hat description or describing the same house!

RE agents don't outright lie, they simply don't tell the truth...(such as leaving important adverse information out or shading it to sound different)

It can be seen in MLS listing information-adverse infromation is simply left out, as if it does not exist. It is amazing, in this day and age of transparency and information sharing, where anyone can pull up an overhead plat and see a home backs directly to a Railroad track, that agents can get away with this, but it is accepted and allowed ( a court decision years back ruled that it is legal for RE agents to use "puffery" in advertising and when representing properties.)

Puffery translates into exaggerating positives as well as not disclosing negatives about a house, condo building, neighborhood, or market trend. They just have to keep quiet about it, and thus they are not liable for saying anything. (the exception is known physical defects in a house, such as a leak. They have to disclose that, if known) However they don't have to disclose information such as that the house is in a terrible school district and that is why it is priced low....instead, they'd represent the house as a "steal" . Let the buyer find out afterward their kid is going to the worst school in the county, and THAT was the reason for the low price, not the agent's problem.

 

[Pittsburgh Pete]

Not sure of any salesperson selling anything that would stress the negatives of their product. You wouldn't see a car salesman going on about his product's sluggish handling or poor gas mileage, etc.

Caveat emptor--and have your own agent to look after your interests.

 

[J Grant]

At least a new car comes with a warranty. And a poor choice in car purchase generally does not ruin a person's life. At most they lose some money on resale, don't like the car and trade it in , or very worst the car gets repo'd if they stop making payments.

A poor home choice or paying too much for a home on the other hand can ruin somebody financially (as we have seen). It's incredible to me that the RE agents get away with what they do, considering the ramifications of their actions.

With a car salesman, most people's guard is up, plus the research one can do on cars over the internet and from blue books etc is generic and to the point. With houses, on the other hand, though a buyer can research, since much of the research is controlled by agent information or builder information about properties, the buyers are far less well informed then they think they are.

Though buyer beware should be the mantra, most buyers spend a lot of time with the agents and become friendly. Though the agents disclose at time of a negotiation they are dual agents or representing the seller, buyers trust them because of all the time, spent, plus the NAR image of the friendly helpful Realtor person does a good job of once again, disguising the truth of the relationship and implies a level of trust that the buyer should have which is a false sense of security..

 

[normando]

When you're an agent, you look at the property differently especially when there are multiple bidders. You get emotional and every little details count - how many offers, financing, concessions, inspections, etc. In the long run, an extra 3% over list price doesn't matter if you really want the property.
When your're an appraiser, you're more objective and more conservative in a way. When buying, you can't be conservative and in current market, you have to stretch the sales price to the high end.