Hi [name] and welcome to my Weekly Insight for Monday 15th April 2013
Quote for the week:
"It is dangerous to neglect your own affairs and to take an idle curiosity in what others are doing (Gossip). We should all be busily engaged in perfecting ourselves, but yet take a kindly interest in others!"
Florence Scovel SHINN in The Power of the Spoken Word.
THE APPRAISAL CHALLENGE!
Real Estate has its regular challenges and as we learn to adapt to the new Legislative framework, Rules and Code of Conduct, we are faced with several challenges at each Appraisal opportunity.
I will over coming weeks, raise some of these challenges, not to give a definitive answer, but to encourage you to reflect on how you and your colleagues handle these challenges.
Today I will just mention one of these: The Actual Appraisal Price or Price Range: as the first challenge is the actual appraisal price you recommend to your potential client.
Yes, we have to provide a written appraisal with recent sales of comparitive properties and we all need to remember this becomes a "Discoverable Document" or "Evidence" should there be any complaint to be made or defended at REAA or any other forum!
We all work with the same sales figures whilst your potential client works with the "headlines."
In theory, we should all come up with a simliar price range as we use the same data.
In reality this does not happen.
It's best to remember that the best business to win and handle is that won on reputation, referrral, trust and respect.
IT IS NOT ALWAYS THE PRICE YOU APPRAISE THAT WINS YOU THE BUSINESS!
And neither it should be.
Despite knowing the Rules and Code of Conduct, in their enthusiasm to win the business, some will also see a little more in the numbers and suggest a higher figure.
The evidence provided by true professionals, who actually understand how to deliver the facts, is more and more winning the day
The same price distortion is risked by those who want to set Auction Reserve Prices at the lowest level possible, then when they sell in a busy market they "Make a big noise about selling the property well over the reserve price."
These people always run the risk that they can be seen as trying to sell their client's property for a lot less than it was worth.
Compounding this challenge is the "unkown or demand" driven prices being achieved in the "hot" areas of Auckland, Wellington and Christchurch.
Such results are making it extremely difficult to appraise accurately, especially when the "great" results are actually inconsistent and whether a property is "HOT" or not, varies from property to property. Remember you have to present your appraisal case in writing and retain a copy.
Make sure you carefully qualify your appraisal and remember, if there are guidelines out there, not knowing them is no defence.
Make sure you and your colleagues have a clear approach to your appraisal numbers.
Have a truly awesome week being the best you can at what you choose to do! Remember,
"Your excellence is acceptable!
Have fun, make money and friends.
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Posted: Sunday 22 April 2018