Bill_FL
Senior Member
- Joined
- Aug 23, 2002
- Professional Status
- Certified General Appraiser
- State
- Florida
Wendy,
I have done many of these. One of the topics that gets the most reaction is contribution value. Explain in detail the difference between cost and contribution.
One way I would highlight this was by using two of the firm's listings. One would be a small, 2/1 bungalow style home in the $80-90,000 range. The other would be a 4000 sf $500,000 home. I would ask them if the lack of a garage in both homes would affect value by the same dollar amount. They would look at you like you are stupid and say of course not. It would hurt the big home much more. Than you look at them and tell them that is why there is no magic number for what one is worth, it is what it contributes to the overall value of the property.
The other thing I would do, before hand, is call ahead to one of their leading listing agents. Iwould tell him/her I was coming and would like to appraise one of his more difficult listings, for free. Yes I would do that. I would meet him/her at the home, have that person follow me throughout the inspection process. I would teach him/her how to measure. At the meeting, I would pass out a copy of the appraisal, with the drawing. IThe appraisal and the drawing were often much different than the listing price and the brokers GLA. we would talk about how I got there. Many would say that homes like that were hard to measure. I offered a measuring service. I would tell them to call me when they had a tough one and would measure and draw it (for a small fee).
I would get many calls from the agents on questions about GLA (mostly) how to properly measure a cape COD, angled walls, basements, etc. I took the time to answer them.
This creates need/need situation with the brokers. When I wanted to verify sales, they would answer the call and help me because I was willing to help them. It also allowed me to see many of the high end homes in the area because I would assit in measuring them or provide a listing appraisal for them. This allowed my database to right. All I would need to verify were concessions. However, when you provide many of the listing appraisals, the banks would have me do the "sale" appraisal, since I would get a copy of the contract, my database would be complete. No calls for verification needed.
I think we go into this in to much of an us angainst them mentality. If we help them, they remember that. They will help you when you need it.
Good luck.
I have done many of these. One of the topics that gets the most reaction is contribution value. Explain in detail the difference between cost and contribution.
One way I would highlight this was by using two of the firm's listings. One would be a small, 2/1 bungalow style home in the $80-90,000 range. The other would be a 4000 sf $500,000 home. I would ask them if the lack of a garage in both homes would affect value by the same dollar amount. They would look at you like you are stupid and say of course not. It would hurt the big home much more. Than you look at them and tell them that is why there is no magic number for what one is worth, it is what it contributes to the overall value of the property.
The other thing I would do, before hand, is call ahead to one of their leading listing agents. Iwould tell him/her I was coming and would like to appraise one of his more difficult listings, for free. Yes I would do that. I would meet him/her at the home, have that person follow me throughout the inspection process. I would teach him/her how to measure. At the meeting, I would pass out a copy of the appraisal, with the drawing. IThe appraisal and the drawing were often much different than the listing price and the brokers GLA. we would talk about how I got there. Many would say that homes like that were hard to measure. I offered a measuring service. I would tell them to call me when they had a tough one and would measure and draw it (for a small fee).
I would get many calls from the agents on questions about GLA (mostly) how to properly measure a cape COD, angled walls, basements, etc. I took the time to answer them.
This creates need/need situation with the brokers. When I wanted to verify sales, they would answer the call and help me because I was willing to help them. It also allowed me to see many of the high end homes in the area because I would assit in measuring them or provide a listing appraisal for them. This allowed my database to right. All I would need to verify were concessions. However, when you provide many of the listing appraisals, the banks would have me do the "sale" appraisal, since I would get a copy of the contract, my database would be complete. No calls for verification needed.
I think we go into this in to much of an us angainst them mentality. If we help them, they remember that. They will help you when you need it.
Good luck.
