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5 Reasons why graphing is a vital skill for real estate professionals

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Can you teach an old dog new tricks? That’s questionable. It’s certainly not easy for us humans to learn new things either. But let’s talk about one skill in real estate that is HIGHLY attainable, yet something that most will ignore (which can be good for you). Knowing how to graph neighborhood sales sounds really dull, but it’s truly something that can be an amazing tool to help you stand out from the crowd and look like a rock star to your clients.

Real estate geeks - Image purchased and used with permission by Sacramento Appraisal Blog

5 Reasons why graphing is a vital skill for real estate professionals

  1. We live in a visual world, so graphs help clients see the market.
  2. Neighborhood data can be far more powerful than zip code data.
  3. Why let Zillow or Trulia make all the graphs? Show your skills.
  4. Graphing helps you understand trends first before talking with clients.
  5. Graphs are perfect for sharing on your blog or social media.

A tutorial on how to make trend graphs: I made a tutorial below for you to check out. I recommend watching it and then pulling up your MLS so you can create a graph by following the steps I took. This is good for Sacramento MLS, but it’s also good for any MLS so long as you can export data (which is probably only a matter of clicking one button). Ask your MLS how you can export data to a spreadsheet if you cannot figure it out. I use Gnumeric in the video (a free version of Excel), and you can download that here for free. Or just use Excel, which is similar and what I use all the time for my fancier graphs.

You can watch the video above or directly here on YouTube. If it’s too small here, watch on YouTube for a larger version. Does this image help illustrate the market? What story does it tell? Should this seller in Rancho Cordova list at $230,000?

Rancho Cordova Example - trend graph of sales - by Sacramento Appraisal Blog

Some Quick Advice: The only way to add skills in business is to take a stab at learning something new, but one big reason why that doesn’t happen is because it can feel intimidating to take that first step. When it comes to graphing it’s easy to think it is only for techies, but trust me, you can do it. The more you practice, the better you’ll get. Remember, you are going to impress your clients by showing them the market visually. Don’t just tell them. Show them. I recommend trying out a graph every time you need to comp a neighborhood or maybe whenever you get a new listing. There are so many different types of graphs too. You can look at my market trends category for some examples. Whatever you do, get into a rhythm so you are practicing regularly. If you have some questions too, don’t hesitate to ask.

Questions: Was the tutorial helpful? Anything you need clarity on?

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A college degree to become an appraiser?

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When appraisers talk about changes in the appraisal industry, I think most of the real estate community only hears “blah, blah, blah” or rather the sound Charlie Brown’s teacher makes when speaking. But today I want to share about a specific change that is coming up in 2015 anyway because this is worth knowing about.

A College Degree? Beginning in 2015 an individual will need a Bachelor’s degree or higher from an accredited college or university to obtain a Certified Appraiser’s license. An entry-level appraisal license can still be earned though with only 30 semester college units or an AA degree, but the problem is that the “Certified” license level (which is a step above the entry-level license) has really become the standard for many lenders and private clients. This means the Certified license is inevitable for anyone serious about appraisal work.

Image purchased from 123rf dot com by sacramento appraisal blog and used with permission graduation cap

The Big Idea: The idea with increased educational requirements seems to be to improve the quality of appraisers, which is probably a good move. Yet at the same time it is already an uphill battle to become an appraiser in California because of how difficult it is to find a mentor and work as an appraiser trainee. On top of this, it is an aging industry, which complicates things further. For reference, I attended an all-day class two weeks ago and only 1 out of 60+ appraisers in the room had a trainee (it used to be much more common). Moreover, the stat I keep hearing is that the pool of appraisers in California has shrunk from about 20,000 to 12,000 as a result of the carnage of the real estate bubble bursting and the mess of HVCC.

Why does this matter? The regulation and education pendulum for appraisers has swung far in recent years as a reaction to mortgage fraud and shoddy appraisal work. On one hand this is great and has potential to possibly increase the quality of appraisers over time. Yet on the other hand it could lead to a shortage of appraisers and end up stifling the industry. Only time will tell.

Image purchased from 123rf dot com by sacramento appraisal blog and used with permission 3

Question: Is this a good move or not? Should a 4-year degree also be required to obtain a real estate license or broker’s license? What do you think?

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