Start Your Engines... Appraiser Versus Real Estate Agent... Who's the better pricer?

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Education & Training with Sell with Soul

Thanks, AR, for the  Gold Star yesterday on my blog entitled "Should You Price to Ward Off Appraisal Problems?" I didn't intend for the blog to generate a war between agents and appraisers, but sometimes these things take on a life of their own. Okay, well, "war" is a bit strong, but we did have a lively discussion.

So, let's continue it. What the heck.star

However, being a Friday at the end of a long week, I'm feeling a little lazy, so I'm going to resurrect a conversation from last July on this very topic. To recap - I did an interview with Real Estate Radio USA where I casually stated my opinion that appraisers should not be in the business of pricing homes for market. I didn't think that was such an inflammatory statement, but... it was. At least to the appraisers of the world. I really wasn't trying to insult anyone; in my opinion, what appraisers do and what we do are two completely different things, at different points in a real estate transaction, for a different audience.

But my good friend Mike Lefebvre (who really IS a good friend; I'm not saying that sarcastically) took offense to my comments and wrote a rather outspoken blog in response. Which sparked a lively debate over at Real Estate Radio USA.

Here's what he wrote:

Jennifer was on yesterday's show to discuss the seemingly age-old question of how listing agents justify their fees. Anyone who listens on a quasi-regular basis knows that Barry and Barry flat out feel that it is nearly impossible for 99% of listing agents to justify their fee for the services they provide. (That's another topic all together and I feel strongly that Jennifer and I are both part of the 1% who can justify their fees as listing agents.) I enjoyed her last interview a lot and looked forward to her take on this one. She speaks with authority, knows her stuff and I was anticipating a spirited debate.

The conversation eventually turned to pricing properties and appraisers and then the fangs came out. To be honest, I wasn't prepared at all for what I was about to hear. It was appraiser hate-speak! I'm sure Jennifer would tell us that "some of her very best friends are appraisers" but I certainly wasn't feeling the love yesterday afternoon. READ THE REST HERE and don't miss the comments - they're fantastic!

No, really, go read it. It's great stuff. We'll be here when you return.

So, what do you think? Who is the more appropriate party to price a home for market? A professional, experienced, competent real estate agent? Or a professional, experienced, competent appraiser? (for the purposes of this discussion, let's leave out all the idiots in both professions).

Happy Friday!

 

jawww.SellwithSoul.com

 

 

 

 

 

 

Are you registered for Saturday's Alternative Business Model teleseminar starring Mollie Wasserman, Margaret Rome, Nishika Jones and moi?
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Topic:
Real Estate Sales and Marketing
Groups:
Learn to be a Top Producing Listing Agent
Real Estate Professionals
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Selling Soulfully
The Ninety-ninth Percentile
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Comments 15 New Comment

Rainmaker
428,374
Jennifer Allan-Hagedorn
Author of Sell with Soul
Sell with Soul

Norm - thanks so much for your thoughts! Wow! However, I don't believe the argument is meaningless, simply because those in our industry have made it meaningFUL. Real estate agents are often frustrated with appraisers' knowledge of the market and appraisers often condescendingly belittle our pricing skills and expertise because we don't rely solely on facts, figures, data and statistics. Oh, sure, in the big picture, it doesn't matter what you or I think - it's the way the system is set up, imperfect as it may be.

However, what I do think is important is for those in our industry to remember who we are hired to serve... in our case, it's our sellers. And there's much more to pricing a home for market than facts, figures, data and statistics.

I don't know if you read the comments from the blog posted above, but one of the most meaningful things I believe said (by me, of course) is that a real estate agent has the ability to influence what the seller does to prepare a home for market. The example I gave was whether or not a professionally constructed sunroom would be counted as square footage or not. In the appraiser's eye, it either is or it isn't. However, to a real estate agent, here's a problem to solve. And if we solve the problem, that seller gets more money. And that's part of the pricing-for-market process, if the agent is a good one.

Anyway, my big picture message is, again, that real estate agents and appraisers have different roles to play in a real estate transaction. And I guess I get irritated when people dismiss the role we play in researching and setting a listing price, as if because we don't have an appraiser's license, we are less competent to do so.

Whew! Didn't mean to go on that long. Thanks for inspiring me!

July 31, 2009 09:09 AM
Anonymous #12
Anonymous
Dan

Buyers set the market value. Our jobs as agents is to analyse and read that information to set prices accordingly.

July 31, 2009 05:40 PM
Anonymous #13
Anonymous
Anonymous

All things being equal -- "professional, experienced, competent" -- I'll go with the appraiser for the reason that his appraisal simply carries more weight at the end of the day.

August 02, 2009 01:40 AM
Anonymous #14
Anonymous
feby
Thank you for posting this. I'm and agent meyslf specializing in . If I hadn't carved out this niche for meyslf there is no way I would have been able to stay in the business the last few year. I think the real estate industry was and still is the cause of the recession.
July 22, 2012 10:38 PM
Anonymous #15
Anonymous
qahnahrtkrw
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July 25, 2012 06:56 AM
Rainmaker
428,374

Jennifer Allan-Hagedorn

Author of Sell with Soul
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