Daily Archives: November 22, 2009

Dummies Guide to The Real Estate Appraisal ~ Part III

Last post I asked “Does it matter?” when referring to whether your appraisal is a quick one page version or by comparison is one that details parts of your home and their suitability to different target buyers / demographics. Plus has actual figures to substantiate an agents opinion.

Did you buy your last personal residence logically or “because you fell in love?” or did it have an “X factor” component that over-rode the other tick-boxes?

That’s right………most people buy things emotionally. (except for things like petrol, bread, washing powder, etc…..)

Think back…..what originally attracted you, in the first place, to the property you now live in?

Was there some emotion in the advertising?

Did the photos or copy of the advert for the home get you emotionally interested / excited about wanting to at least visit the residence?

Its a given that at any certain time frame in the market there are a certain number of buyers, and these buyers swing a little bit between logical and emotional…….trending more towards the emotional with a sense of urgency if they have made a couple of offers over the past few weeks and missed out.

What you want, alongside the normal marketing, is that the confidence amply demonstrated at the Appraisal stage will be transferred across to the actual marketing.

As mentioned above there is at most times, a certain core population of active buyers out there.

What you want your marketing to achieve then………….is to also attract those “hangers on”, the “fence sitters”, the “if the right one comes along”, the person who has done “37 drive-bys this past month”those for whom logically they don’t want to buy – heck they might not even be actively looking.

Marketing – hmmm pick up that other glossy magazine on your coffee table, flick through it – tell me do you think those full page colour adverts were put together on a shoe string, the photographs just snapped as they were, etc. Definitely not, much preparation goes into such things.

So here is your checklist.

1. Get a comprehensive appraisal, not a “one pager”

2. Seek advice from the licensees (new name for agents) regarding how they will specifically market / target your property  (and no I don’t mean just point to the page in their appraisal that says what their company does either – you want to hear from them)

3. Once all agents have handed in their appraisals and left, go to last weeks property booklet or www.realestate.co.nz to review their work. Does it match what they told you? Or does its just say the standard 3 bedroom beauty on 600m2 with 2 car garage – schools close by advert written in 60 seconds? Also compare the photography – if you can’t afford professional photography how does the individual agent handle the task? This is important because it really does display a Real Estate professionals attitude / overall care to duty if nothing else.

4. On realestate.co.nz there has been an addition in recent weeks or months, the listing date is displayed now. See how this compares to the time period the appraiser thought it would take to sell a similar home. Also note does the agent appear to have many properties that have been on the market for extended periods? Perhaps you could do this part of the research before the agent visits, and ask the question at the appraisal interview? That might be unexpected? (the date above I believe is just for that companies listing – so if the property has been with one or two companies it may well be an older date as first original listing)

I’ve split this topic over three posts to try to make it more readable bite sizes. I find it difficult to cut down the number of words I use in a post – but I’m working on it.

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Dummies Guide to The Real Estate Appraisal ~ Part II

In marked difference to prior times, clients must now acknowledge receipt of this appraisal / estimate form and the relevant commission to be charged, by signing a form stating so.

Auctions / Tenders……..I can see where some issues could arise here re interpretation of the new 2008 ACT.

This new added emphasis on the Appraisal, to my way of thinking, is a great thing though.

In many parts of life today, we get the chance to test drive an item, certainly a car, or view that new 46 inch LCD TV at the retailer.

However with Real Estate, sometimes we have our friends or family to help and they may nominate someone with whom they’ve had a great experience, but someone we’ve not only never met, let alone ever heard of.

The crucial fact here is to realise the generational factors at play. Yes ~ you know this person and they have given you an experience that you are not unhappy with.

But now come from your parents mindset……if you are to be true to them ~ timeframes aren’t measured in twitter moments  ~ its more of a definite timeframe thing.

And that timeframe thing ………that worked fine / communication wise for your parents may not be where your expectations lie.

Nevertheless as life teaches us, what one person experiences is certainly not always a duplicate experience for someone else …..even given practically identical circumstances.

In one way that’s been one of the biggest benefits of the Internet, the abilities for owners of products or experiences, to inform the masses of their personal experience, be that in a positive or negative way.

So here in lies the fact that with an appraisal.

What attention does the potential seller of your most expensive asset, your home,  give to your property?

Is it a just couple of basic “cut & paste” paragraphs or does it appear that they have taken the time to detail parts / sections / items in/on the property.

Then have they put there thinking cap on, and gone on to state how those specific items will translate/relate (read the word “target” here) to either your homes potential or equally as important …..things that would appeal to a particular buyer demographic?

Does that matter?

Conclusion coming in Part III

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