Get More Business with Annual Reviews

Most people see their tax preparer, financial planner, and doctor at least once a year—but who's watching out for their investment in real estate? Shouldn't it be the person who sold it to them? The annual client review (ACR) is easy to perform and so unexpected that clients will look forward to it and spread word about the value of your service far and wide.

The annual client review is a current snapshot of the market, which impacts the value of your client's home. Rather than a simple comparative market analysis, the ACR should account for relationships between price per square foot, assessed value, and current market value.

You can perform an ACR on the anniversary date of purchases, do a batch each quarter, or fill up your "slow" month and handle them all at once.

Make sure to create a nice looking bound package, mail it with a cover letter, call the client to tell them you sent them something, and follow up with a phone call in a week or two to review the findings. Easy!

What if it's bad news? Most clients will appreciate your candor—better this news comes from a trusted advisor like you than a stranger. Besides, you don't want clients making serious life and financial decisions based on faulty information.

Don't be surprised if annual client reviews become the single most important business generating activity for you. Yes, it takes a little work and you may have a lot of clients! Our advice: test 20 and see what happens!

When FHA Requires Lead-Based Paint Repairs

If you're interested in working with HUD REO properties and buyers who need FHA financing, you may come across appraiser-required conditions to perform lead-based repairs.

The only time lead-based repairs are required for an FHA-financed HUD REO property is when the property was built prior to 1978.

Lead-based paint removal, however, falls under EPA regulations. A contractor or investor may cure the paint issues, but an FHA underwriter will require a copy of the contractor's Certificate of Completion from an EPA or state provided lead-based paint training program. Repairs completed by owner-occupants do not require this training certificate, but do require documentation of the repairs.

And remember, the FHA appraiser's final inspection will only certify the repairs are completed, not that they were performed according to EPA guidelines.

This rule is required by FHA because renovation, repair, and painting activities such as cutting and sanding can disturb lead-based paint, creating hazardous lead dust, which even in small amounts, is enough to poison children and put adults at risk.

Don't forget to let your renovation-minded clients know!