Posts Tagged ‘listing agents’

The Unwritten Rule All Listing Agents Need to Follow (Sellers: Take Note)

Thursday, April 13th, 2017

If you are a listing agent or a seller who has hired an agent to sell your home, this is an important rule that is often ignored by agents – and it can cost home sellers a sale. It is not written down anywhere and is not required, but it is necessary in order to assure smooth closings. What is this rule? Listing agents must prepare reports for appraisers.

As long as I have been listing properties I have been preparing reports for appraisers. The appraiser, who is sent out by the buyer’s lender to evaluate a property that is in escrow, may not know the neighborhood well or even be from the immediate area. He or she also may not understand why a similar home sold for more or for less. Since the buyer’s agent is not allowed to communicate with the appraiser it is in the best interest of both parties that the listing agent take this advice to heart and come prepared.

I have had many appraisers tell me that they did not need me to meet them at the property or prepare anything, but I still do both and I have to say that almost all of them end up spending at least a few moments at the end going through my report with me.

Here is what I include in my appraiser reports:

1. A brief but concise analysis of all comparable sold properties – usually within the last 6 months, comparing and contrasting them to the subject property. I also let the appraiser know if there were multiple offers, as this can attest to the fact that many thought the property value was accurate.

2. A list of any upgrades or improvements in the subject property

3. Analysis of any pending sales, including prices I can usually obtain from the listing agents to help

4. A comparative market analysis sheet that lists all the comps and the pending subject property

5. All relevant listing sheets (for each property analyzed)

6. Any relevant sales statistics graphs for the area, and

7. A listing flyer

I have never had a listing that did not appraise.

Every listing agent should be sure to include this report as one of their duties. It is the duty of a listing agent to represent their sellers to the best of their abilities, and this simple step – which usually takes about an hour (more for tricky comparable listings) could make a difference in getting the buyer and seller to closing.

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Open Letter To Listing Agents

Wednesday, April 8th, 2015

Dear Listing Agent,

Have you asked yourself whether you are truly representing your sellers to the best of your abilities? There may be other agents who would argue that you are not doing so. Maybe you do not like your job or are overwhelmed (in which case, you need to make some changes, get some help, or get out), or maybe you just need a little advice. The most important way to get that home sold is to make sure you do the following: th-1

1. Be courteous to buyers’ agents. This is a business built on COOPERATION. In fact, without it no homes would sell. With that in mind I have to tell you that you need to be nice and respectful to buyers’ agents. If you are rude, non-responsive, curt or make snide remarks to other agents who may sell your listing, then you are not adequately representing your seller.

2.  Answer your phone/return calls. If I had a dollar for every time I have called a listing agent and that person did not get back to me for a long time, I would have a lot of money saved. Many agents do not answer their phones on the weekend (hello? Does your seller know this?), which is precisely when many buyers are out there looking at homes. I have had buyers want to write offers but needed questions answered, and the listing agent was nowhere to be found. If you cannot answer your phone then you need to forward the calls to someone who can.

3.  Make buyers’ agents and their clients feel welcome. This may be similar to #1 above, but there are actually agents who come to the showings and hang around, making buyers feel uncomfortable. I recently had this happen. When we came back for a second showing the agent stepped out, but made some comments to me later about how long my clients stayed at the property that I felt were rude. (Obviously they were deciding whether it would work – the property needed a lot of updating and was over priced, but they liked it and wanted to be sure. I would rather that happen then instead of once we were in contract).

4.  Make sure your listing is easy to access. I know it can’t be helped sometimes, but listings that require 24 hours notice or have crazy viewing times make it difficult for buyers. Many buyers work during the day and want to see properties after work or on the weekends. The easier the home is to see, the more opportunities for your seller.

The bottom line is that listing agents need to be present and involved with their listings. I am sure sellers in most cases are not aware when their agent is not cooperating/being rude, etc. I am also sure that if sellers knew these things, there are a handful of listing agents who would not get many listings.

The most important thing to keep in mind when listing a property is that you owe a FIDUCIARY duty to your sellers – if you are not representing them in the best capacity possible then you are breaching that duty. Please, consider your actions and always remember to treat other agents with the respect they deserve. It will benefit all parties in the long run and you will have a solid reputation (within the community and with other agents) as a listing agent.

Sincerely,

Buyers’ agents

 

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How To Get the Highest Appraisal Value for Your Listing

Saturday, January 17th, 2015

Appraisals are getting “tighter” and soon even more deals could begin crashing as buyers and sellers haggle the run up in asking prices. Understanding  ( to an appraiser) your  listing is simply a $500 appraisal fee, to you it’s a 3-6% commission; so by being proactive you will minimize the risks of losing large commission checks !   images

Quick Background on Appraisals

Dodd-Frank created a standardized federal licensing process for loan officers (“L/O’s) and appraisers. All appraisals must be performed by an independent third party (“arm’s length”) appraisal service.

The appraiser’s job is to inspect the property, compare it to similar (sold) properties, in closest proximity (up to one mile) and in the most recent time frame (up 6 months). The appraiser uses mathematical formulas (primarily price per sq. ft.) to derive a market value.  Pretty straight forward, until we get to amenities -then it becomes very subjective. One appraiser can value a fireplace at $8,000 and another at $15,000 or a view at $35,000 and another at $100,000.

There is no effective way to determine which appraiser is most accurate.

What Agents Can Do

dreamstime_988060If the appraisal is going to be “tight” there are actions you can take:

1.  When the appraisal is ordered make sure the loan officer lists you as the only “property access” contact. If the home is vacant, take off the lock box (and enter that notation into the MLS).  This guarantees the appraiser will call you for access to the property. Meeting the appraiser at the property is an opportunity to present the most up to date comps.

2.  If it feels appropriate, walk the appraiser thru the highlights of the property.

3.  Be friendly and helpful but NOT pushy!!! Appraisers are very sensitive about pressure to “hit the value”.

4.  Are there listings currently closing? Call the other listing agents and get info on when they are due to close. Better to delay the appraisers’ appt. until another home (with a higher value) closes a day or two later.

5.  Don’t rely on the MLS,  call your title service (daily if necessary) to check on a pending recording. As you know: It’s not unusual for MLS data “to lag” several days!

6.  FHA and VA appraisals often focus on more on “minutiae” than conventional Fannie/Freddie appraisals. Minor repairs ( i.e. leaky faucets – missing lite bulbs-etc)  can require an appraiser to come out for a 2nd time to “sign off” on the completed repairs) and delay your escrow’s closing by days/weeks and add several hundred dollars to the buyer’s costs. So be prepared to (pre) employ a handyman to fix small items (In reality, buyers will want many items repaired anyway).

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This helpful article was written and reprinted with permission by Dan Dobbs. You can visit his website at http://danieldobbs.org/ I felt this was a great article to share it because it provides great information to agents and sellers alike, which can help make sure all is done to assure a successful appraisal.

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