Know how to correctly identify subject property
Correctly identifying subject property is key to improving appraisal work bidding. We have seen that in over 30% of the time, the client has not identified the subject properly or doesn’t know much about it.
Let’s take a closer look at how to correctly identify the subject to properly scope the assignment with an example of a client who needs a bid on a shopping center in Scottsdale, Arizona. All they sent was an address and that it may include a drugstore. With Lightbox Valuation, you could look up the address and get a good idea of what the subject is so you can provide a more complete response to the client. Here’s the type of rich report you could deliver: The subject is the typical grocery-anchored neighborhood center with complementary tenants like a hardware store, standalone drugstore, and coffee shop on the hard corner. The parking field includes covered spaces with access from two major arterials. The analysis will also include a discounted cash flow that models the grocery drugstore, and another tenant lease terms consideration of the addition of the drugstore to the subject as well as a retail cost of occupancy analysis to support our conclusion of market rents. When you correctly identify the subject with LightBox Valuation, the client will be much more confident to choose you.
Know your neighborhood
It’s also critical to know the subject neighborhood which is a huge advantage that boosts client confidence.
To bring that to life, let’s use the same example of a client who needs a bid on a shopping center in Scottsdale, Arizona. With the LightBox Valuation Bid Intelligence tool, you can easily check the neighborhood and prior experience. In this case, it’s primarily residential with a mix of single-family detached subdivisions and some multi-family condos and apartments. Three commercial buildings in the area and one apartment complex can be appraised. Other neighborhood notes include higher traffic counts on McDonald Drive versus Granite Reef, proximity to a 500-year flood zone to the west, and that it’s to the east of a sizable low-income opportunity zone. With LightBox Valuation, that level of detail can be added to subject information and scope for a much better idea of what will be included in the appraisal report. With all this robust information, clients will be much more likely to choose you to complete the assignment.
Know your client
Understanding your client’s goals is another huge plus that will make clients more likely to pay more for your expertise.
Let’s say you find out that same Scottsdale client is the lender of last resort after the first one backed out due to an issue with the grocery store renewal. The borrower’s existing loan must be refinanced within a few weeks plus all other third parties are done, and the new lender needs to close quickly. If the grocery store lease isn’t renewed, multiple tenants are entitled to reduced rent or even lease cancellation. With all this pressure, the client is requesting the report in 8 business days.
Using LightBox Valuation, you can confidently meet the deadline because you can assemble the front end of the report in minutes which leaves enough time to complete the valuation analysis and fieldwork. In fact, on day three you can provide an update on the pending grocery store renewal, so the client has key information on the biggest risk in the renewal. And since you can deliver the report in the requested 8 days, that will increase the chance the loan will close on time.
The appraisal fee will reflect the enhanced service you’ve provided plus the client will be much more likely to choose you to complete the assignment since you’ve helped them achieve their goals.
Contact us today to learn more about the powerful tools in LightBox Valuation.