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Do appraisers create value. There are some who think we do. There are some who think we can. As if we wave a magic wand and – poof! – value results. We know that’ just not true. At lease on think-tank study concludes we can create value in minority neighborhoods merely by appraising those properties higher. How preposterous! Yet, can we create value?
In one sense ,yes. We appraisers create value in ourselves when we provide our clients with a reason to trust us. As but one example, consider an AVM. An AVM is way cheaper than an appraisal. But if a client orders an AVM does the client get what it pays for? When a client orders an appraisal, do we provide more value that an AVM. If no, then the client would be stupid to order an appraisal. But when we do, the client is wise to order the appraisal over the AVM. How did we create value? We created value when we gave the client reason to trust us, but not an AVM. Our trustworthiness created value when the client learned the appraiser was more valuable than the AVM.
In the podcast, I tell a story about a bicycle repair shop that repaired my flat tire. But, given the attitude of surly employee, that employee created no value. In fact, that employee’s attitude earned about $20, but lost hundred of dollars of my future business. That employee created no value. It would have been so easy to create it,. though. Value, in the form of trust, is so hard to earn, yet so easy to squander.
So, do appraisers create value? Yes, we do. Please listen to the podcast to learn more. Thank you! Be safe! Be well! And I look forward to the time we can all shake hands again!