Job Manager: “So, can you give me some details about this property?
Loan Officer: “Sure, it’s a… building. Maybe brick? Definitely has windows.”
I tease but many loan officers see details as an inconvenience. Maybe they’re playing a game, trying to see if the appraiser can guess the rest. Sort of like charades but less fun and with more money on the line.
And then there’s the appraisal department, the unsung heroes. They’ve got the details and they’re trying their best to make sense of what little the loan officers toss their way.
Maybe there needs to be a “Bridge of Understanding” or something. A place where loan officers can be educated on the art of detail – where they’re taken through an intense training regime of “20 Questions”. Maybe by the end of it, they’ll realize the importance of specifics.
Life’s full of enough ambiguities. Do aliens exist? Why do socks disappear in the laundry? Why do we drive on a parkway and park on a driveway? We don’t need vague property details added to the list.
Market Value = Trust
At its core, determining the market value is about trust. Banks need to trust the value of the property they’re involved with, whether it’s providing a loan or evaluating potential risk. Borrowers need to trust that they’re receiving fair treatment. Society at large trust banks to stabilize our economic infrastructure.
Understanding The Golden Circle
1. Why – We determine market value to ensure fairness, transparency and economic stability. This fosters trust in the financial system, encouraging growth and prosperity.
2. How – We utilize a meticulous process, honed by industry standards and best practices. This is where details play a pivotal role.
3. What – The end result is a reliable valuation, which then informs various banking and financial decisions.
Small Details, Big Impact
The “how” is where the magic of details unfolds. Just as a watchmaker understands that every tiny cog and wheel plays an essential role in telling the time accurately, the process of valuation hinges on the accuracy of each detail.
Imagine missing out on specific zoning restrictions or overlooking an area’s potential for economic growth or decline. One oversight can alter a property’s value by tens of thousands, if not millions. By meticulously examining details, banks can better serve property owners, shareholders and society at large.
Inspiring Action Through Clarity
When individuals understand why something is important, they are more likely to take meaningful action. By highlighting the importance of details in property valuation, we inspire a culture of thoroughness and diligence in the industry.
So, here’s the bottom line: loan officers, please step up your game. Get to the finish line of your sales funnel, don’t stop your effort at the appraisal department door. Give your appraisal department the juicy details, the nitty-gritty, the good, the bad and the ugly. Help them, help you and by extension, help your borrowers-to-be who are counting on an accurate valuation.
Let’s make the appraisal department a place where clarity reigns and uncertainty is banished. After all, isn’t that what we’re all striving for in this world of risk management?
Let’s create a culture of thoroughness.