What would you say if you had the chance?

[Pine Tree]

I have the opportunity/chore of speaking to a group of 50 real estate brokers tomorrow morning.. They will have an opportunity to ask questions.. What would you say if you had such a chance? Assuming they are REALLY listening?

 

[Pamela Crowley (Florida)]

I've managed to do this a few times and start with the question:

"What is the definition of Market Value?"

I always bring a hand out with the definition of market value directly from the statement of limiting conditions.

Some will have a little light come on in their brain. Most will be very upset to find out it's not 'whatever you can get on the contract'. They all head for the willing buyer/willing seller routine. This is where "buyer and seller are typically motivated" and " both parties are well informed or well advised, and each acting in what he considers his own best interest" comes in. Pay special attention to "well informed or well advised" and the Realtors Code of Ethics.

Concessions are also good to discuss if you don't run out of time by discussing the above.

Stay away from "The List" (another nice long post here) where they all want to know what the adjustment is for a fireplace, etc. That answer from you always needs to be it depends on the subdivision and the market - statistics give you that answer after you complete your research for each assignment. They won't like that either.

Another subject is the price per square foot issue and how appraiser's don't do this.

Doing a presentation for Realtors doesn't win any popularity contest but you can come out of it with some gaining a little understanding. Good luck and have fun with it. I can't remember your experience level so if I sound like I'm talking to a newbie and you're not, please excuse me!

 

[Bemis Pownall]

Dress like a gladiator


:icecream:

 

[Roger]

Teach them how to measure and report GLA, above and below grade differences, etc.

 

[Farm Gal]

Better yet, give out some ANSI handouts....

Someplace there was another post on thsi subject, I couldn't find it in a brief search... Anyone recall who where or when? Seems to me it was somone in CO who asked this question and got some excellent responses....

 

[Mountain Man]

Check out this past post from when a forumite did the same thing.

www.appraisersforum.com/forums/viewtopic.php?t=967

 

[George Hatch]

In regards to the the definition of market value, I always point out to the brokers that it is their job to get emotionally involved with and to be advocates for their clients' interests. Nothing wrong with that for a broker. Our job description is different in that we are specifically supposed to avoid getting personally involved or to be advocates for anyone's interests, even our own clients. Strange as it may seem, we serve our clients' interests best when we do our jobs without worrying how the deal goes. It is not our job to 'help' anyone, and we really don't have the lattitude that a lot of people seem to think. Whether we think the borrower is a good guy or how our mood is that day has no bearing on the work product.

Another thing that might help these guys out is if they bring whatever comps they think are relevant to the inspection, just understand that sale price is specifically not a qualifying factor. Proximity, GLA, lot area, age/condition, quality, and other factors are. I know a lot of appraisers don't want to sift through the extra and most times useless data again, but I reckon it pays to get it all over with at once.

George Hatch

 

[larryhaskell]

Wendy:

Pamela is right on about the definition of market value. The last time I did this, I had the definition with me when a realtor said "I thought the sale price was always equal to market value." Thats when I whipped out my little definition. Pam is right, lights went on. Give them the scenerio when a property is being sold while in foreclosure or an REO property. It's very possible that market value will be higher than the sale price. Generally that notion never occurs to them.

Another important item is to stress the use of CMAs or at least have relevant sales available they considered while either listing the propery or advising their buyer.

 

[Mountain Man]

"I thought the sale price was always equal to market value."

Their pet appraiser helped develop that idea. 8)
Oh shoot, 8O I'm thinking out loud again aren't I?? :lol:

 

[Pine Tree]

Thanks for these great responses!
I have been appraising for 12 years and still consider myself to be a newbie. :lol:

I did first leg of this "favor" this morning with a smaller group of about 20.. Veerry interesting. that group is high end coastal market, and of course, appraisers get in the way of the goal. ($$$ in case there is any ? )
But for the most part I did find that I needed to explain that contract price is not directly related to value. That surprised me as about 2/3 are season brokers. Also they felt that appraisals should be turned in with 36 hrs of insepection .. We are experiencing a severe shortage in apprasiers .. another whole line of discussion involved in that issue..

I pointed out that at least attending the inspection might be a place to start. They asked if providing comps was expected.. What do you all think? I told them some appriaiser expect it and some are insulted by it. It seems wise to at least ask.. We can probably have lively discussion on this topic .. But I aways want to see what the broker has.. Then I do my own thing.. At least I have considered their input, Right? I came away from today's meeting wondering if I added anything to their knowlege.. At any rate, I learned alot from them in terms of their point of view and I look forward to tomorrows bigger group.. Let the shots fly! Peace, Wendy