Although we are in a multi-offer market, the valuation process remains a challenge for real estate agents across the country. In this episode, Candy Cooke discusses with Monica some of the best ways to work with reviewers to close more deals. In a fast-moving market, everyone involved in the transaction is a team. It is critical for REALTORS® and appraisers to work together to bring people into their homes.
Candy has a list of items that she makes available to the appraiser. You can continue to speak to the reviewer until the review has been submitted. In her "appraisal package" it contains a copy of the contract, either the survey or the details of the property that define the boundaries, as well as the list of all activities that have been carried out with the appraiser's house, and all information about comps that are necessary for the appraiser would be helpful. The more you can provide in advance, the less you need to ask. Providing comps is the best way to find other properties that appeal to the same buyer. It is best to give your information pack to the appraiser before they go to the property. If you are able, you will want to provide other offers as well when you are in a multi-offer situation.
The best way to get the package to the appraisers is to make an appointment with the appraiser and listing agent. You want to make an appointment and make sure the exchange is safe. You can also send the report by email. In this case, you do not have to meet her at the property. It is incredibly important to keep the line of communication with the appraiser open. This will improve the working relationship for everyone involved.
When working with appraisers from outside the area, real estate agents should ask if they normally work in the area. There is a competence standard that is supposed to facilitate work across national borders. There are other certifications (green / clean houses etc) where appraisers should be transparent about their competency before closing a transaction. If, as a REALTOR®, you are not familiar with the appraiser, Candy recommends contacting the lender or loan officer with your concerns. If necessary, you can then escalate to a compliance officer and find that the consumer will suffer.
Ultimately, the appraiser is hired by the lender to ensure that there is enough equity in a home to maintain a loan. You want to make sure the lender gets your money back. Once the appraisal report is delivered and the deal is closed, the appraiser can no longer communicate with the agent. Candy explains what happens in a situation where the valuation is below the contract price. The people who actually use the system tend to be successful.
There are three jobs working at the same time in every transaction: the listing agent tries to get the highest price for its seller, the buyer's agent tries to get the best price for its buyer, and the appraiser is there to help the lender with the financing help decision. It is the listing agent's responsibility to provide the valuer with relevant information, especially if the valuation is below the contract price.
Candy shares her experience of valuing properties with basements as well as rural properties. For the rural plots, it creates its own "land grid", which compares different plots in the region. For unique traits, there is a recommendation of how far back it was in time and distance to get comps. However, since this is only a recommendation and not a requirement, Candy recommends agents do a little of both to get a rounded grid. A helpful tool for any agent is the RPR of the NAR or Realtors Property Resource®. All of your CMAs should be done in RPR®.
Candy's last word for the listeners is to remind yourself that although everyone has a different job, everyone works together to make sure everyone is happy and business can be done. This episode is full of tips and resources to help improve relationships with reviewers. How can you apply this in your own practice?
"You don't go by value, you go by data." – Sweets
"We all have different jobs, but if we all work and work together we can make it work. We're not out there to knock you down." – Sweets
Candace Cooke has been in the real estate industry for 37 years. She is licensed as a Texas Real Estate Agent, Certified Appraiser, and Instructor. Candy is active in Texas REALTORS® and is a member of several local, state and national committees of REALTOR® organizations. She is currently President of the Real Estate Business Institute, a subsidiary of NAR, and Secretary of the Advisory Committee on Educational Standards for the Texas Real Estate Commission. Education is their passion. She was recently named Texas REALTORS® Educator of the Year 2020.
Candy is one of the Senior Instructors for the Texas REALTORS® and currently teaches several "Train the Trainer" classes. As a member of the Texas REALTORS® Professional Standards Committee, Candy firmly believes that REALTORS® must always "do the right thing", something that is strongly encouraged in their classes. Candy was a first class member for NAR's Masters of Real Estate (MRE) program and then went back and did it again. She believes that you can never stop learning in this business.
Candy's enthusiasm for every subject she teaches is contagious. Her classes are routinely busy and she uses Zoom to teach so her interaction is far-reaching. She is actively broadcasting classes live to serve more students across the state. She lives in central Texas with her husband, Mike, and enjoys canning and knitting when she's not teaching.