Recently, I’ve been tossing around the idea of listing the top things not taught in appraisal school, but that would result in a very long blog post. Therefore, for this post, I will describe what I consider to be the most important skill not taught to aspiring appraisers.
Often when I’m appraising a home, or speaking to real estate agents about appraisals, I hear stories of how the last appraiser came to the property, looked around, said almost nothing, and left quickly. I know that appraisers must work fast if they want to earn a decent living in this business, but time spent talking with the owner or agent is a corner that should not be cut. Speaking with homeowners and agents is one of the most important parts of the appraisal process, yet the subject is often overlooked in appraisal school. Some appraisers never feel comfortable with such interaction. Consequently, they may tend to avoid speaking with clients altogether.
Conversing with a homeowner or agent is one of the appraiser’s best opportunities to obtain valuable information about details of the property that might not be otherwise observable. The homeowner may know things like how long ago the furnace was serviced, the costs and timelines of upgrades or remodeling, and features that first attracted them to purchase the home. All are things that an appraiser might not identify on a normal walk-through inspection, but they are also things that may alter the outcome of the appraisal.
The inspection is also the best time for the appraiser to earn the trust and respect of homeowners by being courteous, professional, and knowledgeable. As with any appraiser, there are many times where I deliver a value opinion that is not what the homeowner wanted, expected, or hoped. However, I believe that the time I spent getting to know the owner during the inspection could be the best way to reduce the possibility that the owner will second guess the conclusion or complain about the service.
A good example of a conversation likely saving problems later came from a recent appraisal done by A Quality Appraisal for a divorce. At the inspection, the owner spent a lot of time talking about the great view that the property has. He is proud of the view and he should be. However, it is a view that happens to be characteristic for the area because the majority of properties in this hillside neighborhood enjoy a very similar outlook. In most appraisals, little time is spent discussing a typical view or things that are not significant factors for comparison. However, since I knew the owner was proud of the view and would be looking closely at my analysis of it, I was able to go into greater detail in this section of the appraisal and likely reduce questions or hard feelings later. If I did get questions about the view, I would be able to direct the client to the appropriate section of the report.
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