You've shared unexpected property appraisal news with clients. How can you rebuild trust moving forward?

Nobody enjoys delivering unexpected property appraisal news - similarly, home owners don't enjoy receiving them either... I find that whilst removing the fluff & empathizing with the home owner can work, it does not beat simply justifying the news you are delivering. There are many factors that can lead to a disappointing property appraisal... Factors like: - market fluctuations - recent comparable sales - property conditions There are so many factors at play here, especially in this day-and-age. Your job is to ensure the home owner understands that what you are delivering is more than just a numerical figure. It’s an opportunity to re-evaluate, prepare & initiate smarter decisions, together.

Be honest and provide factual information. If it is an appraisal for a mortgage, you can provide appropriate comps to the appraiser and request a re-evaluation. Sometimes that works, sometimes it doesn't. It is important to know that appraisers are individuals and have their own opinions as well, and the buyer/seller should be aware of that up front, so their expectations are tempered a bit. Sometimes the appraiser sticks to their original opinion, and we must do what we can to move the client forward in a positive manner. Do not disrespect anyone that you are working with. Negativity does not help in any of these situations, but providing positive options can make the "blow" a bit less of an issue

When delivering unexpected property appraisal news, honesty should be your guiding principle. Provide a clear, factual explanation of the appraisal results, ensuring your clients fully understand the situation. Avoid sugarcoating or withholding information, as this can erode trust. Be transparent about the factors affecting the appraisal, such as market trends or property condition. Setting realistic expectations from the beginning allows clients to navigate their options with clarity. By prioritizing honesty, you foster a trustworthy relationship and help clients make informed decisions in response to the appraisal outcomes.

Take Responsibility: If any part of the situation could have been handled better on your end, take responsibility. Clients appreciate honesty and accountability. Example: "In hindsight, there might have been ways we could have better prepared for this possibility, and I take responsibility for that."

Empathy is crucial in maintaining trust with clients, especially when delivering tough news about their property's value. Acknowledge their feelings and concerns, showing that you understand the importance of their investment. Let them know you’re there to support them through this process. This personal connection distinguishes you as a trusted advisor rather than just a service provider. By demonstrating genuine care and understanding, you reassure clients that you are on their side, working to achieve the best possible outcome for them. Empathy helps build a strong, supportive relationship and fosters lasting trust.

Provide Clear Explanations: Offer a clear, detailed explanation of why the appraisal came in as it did. This might involve market conditions, comparable sales, or other factors that influenced the appraisal. Example: "The appraisal reflected recent market conditions and the comparable sales in the area, which unfortunately impacted the value we received."

When discussing sensitive topics like a property's value, it's key to show empathy and understanding. Recognize your client's emotions and the significance of their investment. Let them know you're committed to their best interests and are there to support them through this process. By fostering a personal connection and demonstrating genuine concern, you build trust and position yourself as a reliable advisor rather than just a service provider. This approach ensures clients feel valued and reassured, paving the way for a stronger professional relationship.

I believe that asking questions can really help showcase empathy. Ask questions to your clients and listen to their responses. Then ask questions about their responses. Navigate the questions to learn, all the while, use the information to address their root concerns.

Tout en ne confondant pas empathie et compassion. Si l’on peut entendre et écouter le désarroi d’un donneur d’ordre, il faut également qu’il entende les arguments qui justifient la nouvelle.

After delivering unexpected appraisal news, focus on providing actionable advice. Offer practical solutions for clients to either manage the current appraisal or enhance their property's value. Suggest minor renovations, staging the home for potential buyers, or waiting for a more favorable market. Your expertise can guide them through this challenging time and demonstrate your commitment to their success. By offering clear, actionable steps, you help clients feel more in control and optimistic about their next moves, reinforcing your role as a supportive and dedicated advisor.

In the face of a challenging appraisal, focus on practical solutions to either cope or enhance property value. Encourage minor renovations like fresh paint or updated fixtures, which can have a significant impact. Staging the home can also create a more appealing environment for potential buyers. Advising clients to wait for a more favorable market is another viable strategy. Demonstrating dedication through actionable steps not only fosters hope but also reinforces your commitment to their long-term success.

First thing that we would do is to dig in and figure out the source of the value discrepancy. Then we would see if we could have a discussion on our end and figure out next steps before communicating with the client. Once we are fully abreast of the situation we would communicate the issues with the client and discuss solutions with them. The good thing about appraisals is that it's mostly just math but the inputs can be very subjective.

Talk to them with empathy and honesty. Discuss the paths forward. If the appraisal is before we list the property let’s suggest some minor enhancements without renovations to lift up the property. That could include some furniture swaps, lighting enhancements, painting, declutterring, appliance changes depending on age, and any outdoor add-ons or editing. Do some more research on area comps for the appraisal and then after the minor changes are made call for another appraisal. Simple things can go a long way.

Staying solution focused is extremely important in situations like this. If in this situation the appraisal was lower than anticipated, instead of going down the rabbit hole of emotions with my client, I acknowledge the emotions and tell them that I too share in their frustration, but in this particular moment in time, I have to be able to think clearly on what the best path of forward looks like without letting my emotions cloud that judgement. In a nutshell you need to be able to take action instead of reacting to make sure you are best protecting your clients interests

Trust thrives on open and consistent communication. Encourage your clients to ask questions and voice their concerns, and make yourself readily available for follow-up discussions. Provide regular updates on market changes that may impact their property’s value. By fostering a two-way dialogue, you create a collaborative environment where clients feel valued and heard. This approach not only strengthens your relationship but also ensures clients stay informed and engaged throughout the process. Open communication is key to building lasting trust and demonstrating your commitment to their needs.

Maintain Open Communication: Keep the lines of communication open. Check in regularly, provide updates, and be available to answer any questions. Example: "I’m here to answer any questions and will keep you updated as we explore our next steps."

Maintaining trust with clients hinges on transparent and regular communication. Invite clients to ask questions and voice their concerns freely. Ensure availability for further discussions and keep them informed about any market changes that could impact their property's value. This approach fosters a two-way conversation, making clients feel appreciated and understood.

Transparency is everything. There is a difference between good timing and dodging a scenario. Open communication is about great timing and calling a spade a spade! Examine the circumstance, and unveil the truth in the correct moment!

Encourage your clients to adopt a long-term perspective on their real estate investments. Remind them that market conditions fluctuate and property values often rebound over time. Discuss future strategies, such as investing in property improvements or exploring rental income options. By helping them look beyond the immediate appraisal news, you reinforce that real estate is a long-term endeavor. This perspective helps clients stay optimistic and view challenges as opportunities for growth. Position yourself as a supportive partner in their journey, committed to their success over the long haul.

Understanding the long-term nature of real estate investments is essential. Market fluctuations are normal, and property values often recover over time. Encourage clients to think about future opportunities, such as property improvements or generating rental income. By focusing on these strategies, we can help clients see beyond immediate market conditions and recognize the enduring value of their investments. This approach not only strengthens their investment portfolio but also underscores our commitment to being a reliable partner in their journey.

Demonstrate Commitment: Show your commitment to helping the client achieve their goals despite the setback. Reassure them that you are fully invested in finding a positive outcome. Example: "My priority is ensuring we reach a resolution that works for you. I’m committed to seeing this through and finding a solution."

Good things come to those that wait. Real estate is traditionally a long-term investment. The best way I have helped clients overcome nearsightedness, is to show them 20-30 year trend reports for a given area. My approach is to allow them to conclude the results by themselves!

Ensure that any actions you commit to are completed promptly and effectively. This demonstrates reliability and rebuilds trust. Example: "As promised, I’ve started the process for the appraisal appeal and will keep you informed of our progress."

Tout en ne confondant pas croissance et précipitation. Il faut également assurer une certaine stabilité dans ses activités pour devenir et rester un repère pour les donneurs d’ordre. Consolider une position se transforme alors en croissance paisible.