I recently spoke with a real estate agent who was considering hiring me to complete a pre-listing appraisal on a property expected to list for around $3 million.
He understood why the appraisal could be helpful, but he kept coming back to the fee.
Was it really worth spending the money before the property was listed?
That is the wrong question.
The better question is: What could it cost the agent if the property is listed incorrectly?
If the home is overpriced, it may sit on the market, lose momentum, and eventually require price reductions. The seller may grow frustrated and begin questioning the agent’s advice. In the worst-case scenario, the listing expires, the seller hires someone else, and the agent earns exactly zero dollars in commission.
Suddenly, the appraisal fee does not look quite so expensive.
The Appraisal Is Part of the Cost of Doing Business
Agents regularly spend money preparing and marketing listings. They pay for photography, video, staging, advertising, floor plans, brochures, and sometimes a drone that flies dramatically over the swimming pool.
A pre-listing appraisal should be viewed the same way.
It is not just another expense. It is a tool that can help the agent win the listing, establish a supportable pricing strategy, and manage the seller’s expectations before the property hits the market.
On a high-value property, the financial risk of getting the price wrong can be significant. An independent appraisal can give the agent another layer of support when discussing value with the seller.
The agent may believe the property is worth one amount. The seller may believe it is worth substantially more, because sellers have never been known to be emotionally attached to their homes.
Bringing in an independent appraiser helps take some of that pressure off the agent.
Instead of the discussion becoming the agent versus the seller, the agent can point to objective market evidence from a qualified third party.
Give the Agent More Than a Number
For my pre-listing assignments, I do not simply hand the client a report with one value conclusion and disappear.
I provide a point value, but I also discuss a reasonable range of value, a recommended listing price, and the anticipated marketing time associated with that pricing strategy.
That information gives the agent and seller something useful to work with.
The seller still makes the final decision about the listing price. The agent still controls the marketing strategy. My role is to provide credible market information so everyone can make a better-informed decision.
That is what makes the appraiser valuable.
We are not there to replace the agent. We are there to help the agent have a more productive conversation with the seller.
Position Yourself as Part of the Agent’s Team
Many agents do not automatically think of appraisers as a resource for winning or selling listings.
Part of that is because appraisers often market themselves by saying things like, “I complete pre-listing appraisals.”
That describes the service, but it does not explain the benefit.
Instead, show agents how you can help them:
- Support their recommended listing price
- Handle disagreements about value
- Set realistic seller expectations
- Reduce the likelihood of overpricing
- Provide an independent opinion on unusual or complex properties
- Strengthen their listing presentation
- Create a more professional pricing process
The conversation should not be, “Would you like to buy an appraisal?”
It should be, “Let me help you create a stronger listing strategy.”
That is a much different value proposition.
Make It a Standard Part of Their Process
The best opportunity is not convincing an agent to hire you once.
It is becoming the appraiser they call whenever they have a difficult, high-value, unique, or emotionally complicated listing.
Encourage agents to treat the appraisal as part of their normal process.
When the agent and seller disagree on value, call the appraiser.
When the property is unusual and difficult to compare, call the appraiser.
When the seller is interviewing multiple agents and expects an aggressive price, call the appraiser.
When the potential commission is substantial and the agent wants to protect the opportunity, call the appraiser.
Over time, you become more than someone who produces a report. You become part of the agent’s advisory team.
That is how one assignment can turn into a long-term referral relationship.
Sell the Outcome, Not the Report
Appraisers sometimes get too focused on explaining what is inside the appraisal.
Agents generally do not care about the number of pages, the adjustment grid, or how many photographs are included. They care about whether your work will help them win the listing, price it correctly, communicate with the seller, and get the property sold.
Sell that outcome.
A pre-listing appraisal can help an agent protect a commission that may be worth tens of thousands of dollars. It can also save weeks or months of wasted marketing time and uncomfortable conversations with an unrealistic seller.
Compared with those risks, the appraisal fee is simply part of doing business.
Appraisers who learn to explain that value will have a much easier time building relationships with agents and generating more private work.
Do not just offer to complete an appraisal.
Offer to become the person agents trust when they need an independent answer to the most important question surrounding a listing:
What is this property really worth?
To learn more about building non-lender appraisal work and developing stronger referral relationships, join the Appraisal Referral Network at referappraisals.com.
