Day 16 of 90 My Best Practices Real Estate 2018 and today is continuing education classes about the appraisal process and closing. Practices in real estate are so multi faceted and laws are constantly changing that is is imperative that every agent continue to learn. I actually have always thought the best skill an agent can have is in explaining all these steps coherently to a client and prospect. Consumers because of the plethora of information on the internet feel as though they know it all. No time is taken to consider whether this information is accurate. The first step in talking to prospects is finding out where they are on the information tree.
Pricing, Inspections, Zoning, Construction, Plumbing, Electric let alone the incredible emotional issues surrounding buying and selling property all need to be understood at a level that allows the purchase or sale to happen swiftly and effectively. It is imperative to discuss these issues with a professional. Appraisals are traditionally required by a lender and paid for at the closing by the Buyer. The Appraiser actually works for the banks interests in that they want to make sure the valuation will cover the loan granted. An appraiser will look for complimentary sold and active properties within a third of a mile from the subject house sold within the last 3 months.
Since the market changes with each new season getting properties sold nearby recently gives you the best indicator of the value. Each Seller predictably has a higher value on their house than the houses in their neighborhood. The reason for this has to do with the property no longer being a house (which is a commodity) and has become their home. Home is always more highly valued. An agent can help the valuation by providing the appraiser with comps they have found. Share information freely as a teacher for your clients and they will appreciate your efforts. This is Day 16 of 90 My Best Practices Real Estate 2018