Check letters display a Total Value and an Estimated Cash Offer on each mail piece. Understanding how these numbers are calculated -- and what to do when they appear higher than intended -- helps you set accurate expectations with homeowners and convert inbound calls into qualified leads.
How Valuations Are Calculated
The Total Value on a check letter represents the estimated market value of the property, derived from public records, comparable sales, and automated valuation models (AVMs). The Estimated Cash Offer is a percentage of that total value, configured in your campaign settings -- typically 60-80% depending on your acquisition strategy and market.
These numbers are generated automatically for each property based on the data available at the time the campaign is processed. They are not manually reviewed on a per-property basis, which means occasional outliers are expected.
Why Valuations Can Be Inaccurate
| AVM Limitations | Automated models rely on comparable sales data. In markets with low transaction volume or atypical properties, estimates can diverge significantly from actual value. |
| Stale Data | Property records may not reflect recent damage, unpermitted additions, or market shifts that would change the true value. |
| Configuration Errors | If the offer percentage is set too high (e.g., 95-100% instead of 65-75%), the mailed cash offer will be at or near full market value. |
Handling Inbound Calls About High Valuations
When a homeowner calls referencing a specific dollar amount from your mailer, use the Acknowledge and Pivot approach:
- Do not volunteer the error. Many callers will not reference a specific number. Let them tell you why they called.
- Acknowledge briefly if asked directly: "That estimate was based on automated market data. Our actual offers are based on a thorough property evaluation."
- Pivot to discovery. "What prompted you to consider selling? Tell me about your property." The goal is to understand their motivation, not defend a number.
- Never commit to the mailed amount. All pricing happens after evaluation, not on an initial call.
Even frustrated callers are leads. The fact that they called means the property is on their mind. A professional, empathetic response often converts initial skepticism into genuine engagement.
Preventing Future Issues
- Review offer percentage settings with your CSM before each campaign. Ensure they align with your actual acquisition range.
- Spot-check a sample of mailed values before approving large runs. Flag any properties where the estimated value looks unrealistic.
- Document feedback. When a homeowner reports a valuation that seems off, note it so the data can be corrected for future campaigns.
Key takeaway: Check letter valuations are starting points for conversation, not binding offers. Your team's ability to pivot from the printed number to a genuine discovery conversation is what converts these calls into contracts.
