How to Make Referrals (in Maryland) Without Being Fined
Say it needs some “tender love and care“, say it’s a “lived in” home, call it whatever you want- as real estate appraisers, we come across a lot of properties that clearly need a little fixing up. Good real estate agents want to do more than just help their clients find a property, they want to find their clients a home. When we come across features of a house that need repairs, obviously we note it in the appraisal. When clients read our report, scenarios like “Oh no… there’s a lot we need to fix up“ or “We’d like to do renovating or remodeling” (what’s the difference?) are not uncommon. This is where most experienced real estate agents like to swoop in with the classic line: “Don’t worry, I got a guy.” The agent hands over a business card, the client calls the exterminator/plumber/electrician/whatever was needed, and the problem is solved. It’s just that easy, and it’s always been that way. Well not anymore. https://youtu.be/GrcR-SOUEeo The most recent updates to the Real Estate Commission Regulations brings a new requirement with it that some other states have already adopted. Agents are now required to verify whatever vendor or service provided they reccomend has all the up-to-date permits and a valid state license. An electronic link must be provided so any third party can verify this, as all referrals also must be submitted in writing. This applies to more than just referrals to clients. Brokers, inspectors, contractors of any kind… any profession remotely related to real estate that requires a license, you need to write your...Why a Low Appraisal Isn’t Always a Bad Thing
Having worked as brokers, agents, and appraisers, we certainly understand the ins and outs of negotiating a real estate contract. As such, we’ve also come across that awful scenario (and headache) of a real estate appraisal coming in below the contract price. So the Appraisal Came in Too Low- What Now? Typically, this puts the ball in the buyer’s court. As an agent, it’s part of the job to make sure your client doesn’t end up paying too much for their house. Of course the option of taking the lower financing and coughing up a larger down-payment is always there. Sadly, we often see agents who just decide to roll with it and recommend this course of action to their clients. As a buyer agent, don’t be afraid to go to bat for your clients. An offer should be based on what the home is worth, and not the listing price. Cost and value are very different things. When an appraisal comes in lower than the asking price, renegotiating the sales contract should be the buyer agent’s first course of action (provided the seller is willing to listen, of course). Sometimes, a seller might try to discredit or cast doubt on the appraisal by looking for some mistakes. Don’t be afraid of potentially ruining the deal; this is where you need to stand your ground as an agent, and look through the appraisal yourself. “Well that’s just the one appraiser’s opinion; we think our price is perfectly fair.” It’s very important to remember that real estate appraisers have to follow a certain set of rules. There...
Was Your Home Measured Wrong?
Depending on the floor plan, measuring a home can be quite a headache. It’s important to let your appraiser or real estate professional measure your property uninterrupted –we’ve mentioned this before. What we haven’t mentioned is that getting the numbers right isn’t all it takes for a home to be considered mismeasured. While there are others, generally there are two commonly used standards of measurement in the world of real estate: the ANSI (American National Standards Institute) or the AMS (American Measurement Standard). In our review work, we find some interesting results when it comes to measurement standards. On paper, the ANSI standard is the more commonly used of the two- but that’s just the problem. It’s only on paper. In reality, many real estate appraisers and professionals are measuring and drawing up floor plans under the impression they’re using the ANSI standard, when they’re really recording measurements using the AMS measurement standards. There’s another word for this- wrong. While the difference between the 1/10th of a foot and a 1/2 foot may not seem like much, the real problems that can arise from this will show up in court. If your real estate appraisal (or any official document listing measurements on your home for that matter) displays the measurements for your home in the wrong measurement standard, it can ultimately discredit both the real estate appraiser (no so much your problem) and the appraisal itself (there’s your problem.) Ultimately, it’s not a bad idea to ask your surveyor, inspector, appraiser, or whomever is measuring your house what standard they’re using. It could help you catch that error that’ll save...
How to Handle a Bad Appraisal
If a real estate appraisal comes in too low, it doesn’t necessarily mean the appraiser made a mistake- but it might. The following is a short video explaining what to do if you actually A few months ago, we did a post on how to spot a bad real estate appraisal. The following short video explains how to formally present your concerns and questions to coerce the appraiser to take a second look. We’ve also put together some simple fill-in-the-blank templates to make this process as easy as possible- download links can be found at the bottom of the page. Challenging a Bad Real Estate Appraisal Templates: Template 1 Template 2 Jonathan Montgomery Founder and President of the The Real Estate Appraisal Group.He has been a real estate professional since 1998. He’s been a broker, and investor and now serves as an appraiser. He currently works as an appraiser, doing real estate appraisals in Washington D.C., Southern Maryland, and Northern Virginia. #treagroup...Appraisal Secrets eBook – Click Now!
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