I have been asked many times what kind of appreciation in value a buyer should expect from the purchase of a property?  I have also heard other agents asked that question.

I have been quite shocked and amazed how many times an agent was willing to stick their neck out and predict the market.  No intelligent agent would go there period.

I bet there are many folks out there who bought properties three or four years ago and were told how much money they should make, to now be foreclosed on or be in a short sale.

I will share historical data with clients and provide information comparables to help them establish market value.  I will never predict what the value of their home will be in 2 years, etc.

Now I clients come to us for expert opinions and many expect more than side stepping the question, so what are you to do when pressed by a client?

Here are a couple of things I try.

• I discuss possible scenarios and what ifs.
• What if the market goes up?
• What if the market tanks?
• What if you have a drop in income, etc.?
• I run a spread sheet that plugs in various expenses, etc. to let them know what the numbers will look like under the scenarios.
• I discuss what the use of the property will be. (If it is to be their primary residence, they need to look at it differently than an investment).

So you can be a professional without making promises that are unprofessional and possibly illegal.  Yes I said Illegal.  If you are promising a return on an investment you may be selling a security, which we are not licensed to do.

So we can be an expert and professional without sticking our neck and making promises or predictions on the future value of their purchase.

Good luck and good selling!