Appraiser speaking to RE Agents

[J Grant]

Pass out donuts or snacks, tell a few entertaining stories, present a few of the most basic appraisal concepts and that;s it ( then hand out your card )

I used to try to educate RE agents including speaking at a few functions and gave up. They simply do not want to hear what appraisers have to say, since what we have to say can make them lose out on a commission or listing. I used to sell RE , (for 5 plus years prior to appraising) and I have nothing against agents and in fact can enjoy their company, but having sold with them and then trying to talk to them as an appraiser, imo 99% of them will never learn even with best presentations, the 1% that do can contact you for a private tutorial or just send a question.

Recommend they take take a basic appraisal course- after that recognize the reality that no matter what you say, majority of them will act as if they heard nothing and not change. Such as if yu ask them to be more accurate in listings, measure, not exaggerate etc. Take a look at their listings the next week, it will be like you talked to the wall. Majority of agents block out reality in favor of their agenda, and over the years I have come to believe that is in the DNA of a good sales person. A truthful agent that can also succeed in sales is rare , and very valuable to their Clements ( Denita on board is one ). Anyway, just have fun with it.

 

[ucbruin]

I have nothing against agents.....
But....

"Recommend they take take a basic appraisal course..."



Some of the more opinionated and clueless ones are the ones who say they've taken an appraisal course....

 

[J Grant]

a A question and answer session after the donuts....

 

[George Hatch]

My advice is to be mindful.

I think the very last thing I would do is antagonize a roomful of brokers. Even if accidentally. They have a job to do, it's a necessary job and it's in our interests that they do that job well.

Moreover, it won't be the speaker who pays the price for going negative; it will be appraisers in general. And they won'be be getting hassled by just from the brokers in attendance but everyone those brokers tell that story to, including their buyers and sellers.

If your intention is to help them do better with appraisers and valuation issues then find the common ground we can all agree upon and use that as the basis for advancing toward "better". Don't ever talk down to them; that's not how you get to better.

 

[J Grant]

My advice is to be mindful.

I think the very last thing I would do is antagonize a roomful of brokers. Even if accidentally. They have a job to do, it's a necessary job and it's in our interests that they do that job well.

Moreover, it won't be the speaker who pays the price for going negative; it will be appraisers in general. And they won'be be getting hassled by just from the brokers in attendance but everyone those brokers tell that story to, including their buyers and sellers.

If your intention is to help them do better with appraisers and valuation issues then find the common ground we can all agree upon and use that as the basis for advancing toward "better". Don't ever talk down to them; that's not how you get to better.

Why I said bring snacks ( everybody loves food/coffee ), tell a few light anecdotes, impart one or two basic principles, take a few questions , then wrap it up by telling them how awesome you think RE agents are and how hard their job is.

That is the way to leave a good impression. They had fun, had a donut, heard a good story, got validated.

If a dull lecture they will tune you out as they spend most of the time checking their smartphones for messages and can't wait to get out of there.

 

[ZZGAMAZZ]

What topics do you typically like to discuss when being invited to a real estate firm's monthly meeting? What topics can we as appraiser's teach agents to help the industry collaborate more effectively and efficiently? It will be a one hour session. Thanks!

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Explain the definition of "Market Value."

Explain how, as previously mentioned, that "price," per se, CANNOT be used as a comparable search criteria.

Explain how the "price/sqft" normalizes absolute values, e.g., selling prices.

Explain "diminising marginal returns" as it affects price/sqft, to the extent that a realtor should try to provide a smaller comparable and expect an appraiser to apply the price/sqft to the subject that is larger.

Explain that we must provide a credible product to the extent that underwriting buys into the factors upon which we arrive at our opinion of value.

Explain that the opinion of value isn't predicated upon an offer being extended on the subject property.

Explain that our due diligence will attempt to reveal why the contract price is $xxxxxx above the reduced list price of a property with prolonged market exposure.

That having been said, try to explain "market exposure," as well as the inverse relationship between length-of-exposure and absolute value as per supply-demand theory.

Remind them, above all, that all of the underlying appraisal methodology should be brought to bear when the list price is established, because an appraiser might ask the listing agent at the beginning of an assignment to provide potential comps for his or her consideration; and if the opinion of value falls (significantly) below the contract price, my report will most certainly indicate that the listing agent was unable to demonstrate the rationale for the list price.

....with a caveat that we are colleagues in the same industry, and that a prudent agent should hire a competent appraiser to provide a signed valuation that can be used as a marketing tool, for prospective buyers whose desire to purchase a property almost certainly would be enhanced if they are purchasing a property with inherent equity.... with a caveat that it can't be used for lending purposes nor is there any guarantee that the next "house appraiser" like me will agree with the opinion of value.