Being the recipient of a low home appraisal can be devastating, especially when you expect higher numbers from your property. But as the appraiser, it poses a different problem — maintaining client relationships after delivering the bad news.
The Importance of Client Relationships
A certain level of trust and respect is necessary when assessing a property. However, most professionals forget this until the worst happens — until your documentation and analysis put you on bad terms with mortgage lenders, home buyers and property sellers.
It can be easy to place the responsibility of keeping positive client relationships on the other party, but it’s not that simple. You could be talking with someone who’s never gone through the appraisal process before. Maybe it’s someone who’s already had a bad experience with someone in the same profession.
In all cases, you are a representative of yourself and your industry. Keeping a good relationship with your client in these situations is paramount. Make your patron feel at ease so the home appraisal process will run smoothly. You’ll also maintain a good reputation and improve your chances of getting a good review.
Showing Up for Pre-Appraisal Impressions
Mending a positive client relationship after a low home appraisal report can seem challenging. It’s especially difficult if there’s an existing lack of trust and respect, so it’s important to make a good impression before the evaluation begins. Here are a few things to keep in mind.
Display honesty: Low home appraisals happen. About 6.3% of pending home sales appraised were at or below the contract sales price. While chances are slim, it’s best not to get a client’s hopes up about the numbers. Stress that you will be honest and unbiased during the estimation.
Open communication: It can be a big point of anxiety for a client if they find you hard to reach. Give out your contact details to mediate this possible fallout in your relationship. You can also set up a meeting to explain the appraisal process and reassure them you know what you’re discussing.
Stick to deadlines: Positive client relationships come easiest when you deliver on what you say. If you give a deadline, you have to be ready to complete it. When you arrange an appointment, you need to show up early — on the off chance that you can’t, communicate ahead of time.
Tips to Maintain a Good Relationship Post-Appraisal
When you finally release the low home appraisal, a lot of tension between you and your client can build up. It’s crucial to handle this conversation as best as you can.
1. Keep a Professional Demeanor
In an ideal scenario, home sellers will accept the low home appraisal, speak with the lender or renegotiate with their buyer. However, things can often go out of hand with a low appraisal. Emotions may run high and they may take things out on you in person.
Whether they’re shouting or crying, it’s essential to keep calm. Know that they simply need to let out this initial wave of emotions. Take a deep breath and stay professional. Extend your apologies and reiterate why your appraisal came out as is.
2. Listen to Their Queries
Assuming your client has calmed down, ask whether they have any other comments or questions on the matter. This stage can help expand on the reasons for the low home appraisal, which can provide closure.
During this time, they may ask for advice on how to incur a higher home price. For instance, 79% of homeowners believe hardwood flooring adds property value. Many real estate professionals and fellow appraisers may agree with this sentiment.
It can seem tempting to offer such thoughts post-appraisal, but keeping personal opinions to yourself is best. It’s one thing to speak before the inspection but another to advise after. Some professionals could consider this connivance, so the best you can do is point out the property listings you compared their house to and provide general feedback.
3. Display Your Ethics
Certain clients may indirectly request that you inflate the price of your home appraisal. They may even go as far as adding a bribe to it. Detail how appraisal fraud through intentionally inflating or deflating the cost of a home is illegal, and shift the conversation to another point about the appraisal.
4. Utilize Neutral Language
When you’re delivering bad news to someone, you might be rubbing salt in the wound if you’re talking negatively. At the same time, sounding overly optimistic doesn’t fit the situation. It can even sound like you’re mocking the client to a certain extent. Read the room and try to use neutral words that maintain professionalism.
5. Keep an Empathetic Tone
Aside from your language, tone and approach also play a big part in delivery. A low home appraisal can be big news for your client with high expectations, so empathize with them about the situation. In some cases, you can also provide reassurance, but it’s important to avoid making promises that give them false hope.
6. Follow Up After
Following up after a property assessment should be standard practice for any appraiser. For low appraisals, checking in with clients is even more necessary. Ask them what happened with the property sale and if there’s anything else you can help with.
Some clients may feel a bit of bad blood after receiving the report. Others may simply forget to contact you. Either way, you display your care for their endeavors by reaching out. It’s a good show of character that can keep the relationship positive.
Care For Client Relationships
Low home appraisals are a tough pill to swallow, but they’re an inescapable reality of property assessments. Don’t let them impact your client relationships. Continue to respect your clients and foster your connection as best as possible after the appraisal to maintain good rapport.
