Recent RPS House Price Index data indicates that a number of Canada’s major housing markets are experiencing ongoing price adjustments. Balance is being restored in certain previously booming regions in the Prairies, while lengthy corrections in B.C.’s Lower Mainland and southern Ontario remain ongoing.
In such environments, today’s property values — and what clients expect them to be — are often not aligned. Perceptions around values are slow to adjust, and it can take months, or even years, for some clients to accept a new pricing paradigm. Managing client expectations can present difficulties for brokers at the best of times, and that is especially true in dynamic and evolving real estate markets.
However, data-driven intelligence empowers brokers to bridge gaps between client expectations and reality, opening the door to more productive conversations. One tool that helps achieve this is the RPS House Price Tracker available through the RPS Broker Portal.
How the RPS House Price Tracker works
The House Price Tracker is a comprehensive tool that harnesses RPS’s proprietary housing data and industry-leading market insights. Using the tool, brokers are able to generate house price estimates for any residential address, saving time and the additional cost of running an Automated Valuation Model.
These estimates are presented in easy-to-read, client-ready reports that provide a snapshot of a home’s value profile. The reports show not only the current estimated value range but also how it has changed over time. Local market benchmarks for comparable property types are also included for comparison.
A one-time home value report can be generated instantly at any time — regardless of whether or not the property in question has ever received a full RPS appraisal previously.
If the report is requested after a full appraisal has been ordered, it is automatically regenerated and sent directly to the broker’s inbox every six months for up to five years.
The House Price Tracker draws on PRS’s robust House Price Index, which is based on the latest monthly actual home values in 1,000 towns and cities across Canada. Consequently, the price tracker is capable of providing estimates for millions of residential properties.
A conversation starter (and more)
In conversations with brokers, the RPS House Price Tracker is consistently cited as one of the most valuable tools available through the RPS Broker Portal. Here are several ways the tool helps brokers manage client expectations, start conversations, and more:
- Client retention: With new reports to share every six months, the House Price Tracker aids with client retention. It establishes a regular touchpoint and also demonstrates that the broker is engaged and following the market closely. It is an opportunity to consistently share a value-add with clients.
- Education: Upon receiving the client’s value estimate ahead of a renewal, brokers can turn to the RPS House Price Tracker for an instant second opinion. The estimate provided is not a substitute for a full appraisal, but it establishes a useful starting point for further discussion.
For instance, if the price tracker’s estimate is significantly lower than the number provided by the client, it could be a sign that the client is overvaluing their home. Armed with this knowledge — and a source to support it — brokers can preempt more difficult conversations. They can begin preparing the client that the appraisal may come in lower than they expect, avoiding unpleasant surprises later on in the process. - Efficiency: The House Price Tracker can help brokers save time, increase efficiency, and save clients money, too. For example, by passing along an estimated value to clients before an initial appraisal and managing expectations early, brokers can reduce the likelihood of needing to incur the expense of a full second appraisal later on. Clients are more likely to request a second-opinion order if they are not prepared in advance with an estimated value range.
- Business generation: The House Price Tracker is also useful for generating business outside of the typical renewal cycle. Some brokers use the tool to determine whether current home values support refinancing.
In other cases — such as if an existing client had previously expressed interest in obtaining a Home Equity Line of Credit — sending them a report showing their home’s value has increased substantially year-over-year could re-open this conversation.
Key Takeaways:
The RPS House Price Tracker is available to any broker with an RPS Broker Portal Account. It provides on-the-fly reports with estimated value ranges for millions of properties across Canada. These reports:
- Can be generated at any time, even if the property has never received a full RPS appraisal before
- Establish a regular touchpoint with mortgage borrowers to improve client retention and generate new business between the regular refinancing cycles
- Help manage client relationships and improve day-to-day operational efficiency by setting clear expectations for home values before an appraisal is ordered
RPS is the go-to appraisal partner for brokers across Canada, supporting every stage of the process from file submission to value appeals.
Julian Perera
Appraiser Network Manager, Western Region
Julian is RPS’s Appraiser Network Manager, Western Region. He has extensive experience within RPS’s Broker and Success teams. As a designated DAR, Julian combines strong industry knowledge with a deep understanding of appraiser relationships, operational workflows, and service excellence.Julian is RPS’s Appraiser Network Manager, Western Region. He has extensive experience within RPS’s Broker and Success teams. As a designated DAR, Julian combines strong industry knowledge with a deep understanding of appraiser relationships, operational workflows, and service excellence.
Julian is RPS’s Appraiser Network Manager, Western Region. He has extensive experience within RPS’s Broker and Success teams. As a designated DAR, Julian combines strong industry knowledge with a deep understanding of appraiser relationships, operational workflows, and service excellence.