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Acting as a Broker.and Appraiser

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This is very interesting. In light of the fact that 'full service', 'one-stop shopping' real estate firms have loan officers or mortgage reps actually stationed right inside some of the real estate offices, (the mortgage operation being owned by the real estate firm), and also offer a whole smorgasborg of other real estate services which they may or may not own as well, I don't see any problem with doing both an appraisal and the real estate transaction. If it were me, I would try to make sure that your disclosures were as iron-clad and bullet-proof as possible. I would also check to see if you need to cover yourself on the real estate transaction side as well, in case your local / state board has some rules about such a situation.

Off topic, but also reminds me: Can you imagine the intense pressure on that loan officer sitting inside the real estate office to make the deals originating from that office work, no matter what the cost? (Can you imagine what would happen to him/her if they didn't??? How do you spell c----r---u---c----i------f-----y----). I would like to be a fly on the wall in one of these offices......
 
I personally would steer clear of it....but thats my opinion.

JC
 
i agree w/ m leggett. i'm both an appraiser and broker, and you can only wear one hat. but, the broker hat with appraisal experience/doing a CMA should be good for them.
 
I have a client that originally requested me to act as his real estate broker in which I was thrilled. Then, after visiting my office, found out that I am also an appraiser. They are interested in me listing their home for sale, but also would like for me to provide them with an appraisal. They basically would like to see the comparables, with adjustments, for fair market value purposes.

I have been upfront with the seller whereas they understand that I wear two hats. Should I provide this client with "Consultation" services, a 2055, old 1004, or ???. I will explain everything within the report in regards to the fact that I am both a broker and appraiser, intended use, scope, etc... How would you handle this situation?

You're not "consulting" when you, an appraiser, provide a client with an opinion of value.

Be careful...don't mix your roles with the same client and/or the same property! ! ! ! ! !! !

Lee Lansford, IFA
AQB Certified USPAP Instructor
 
I Am In Disbelief Here.

Are you guys kidding me????

This is a no brainer and NOBODY has gotten it right YET.

He said the property owners found out he was an appraiser and wanted to see comps and whatever....ie...they KNEW he was an appraiser and are now interested in his professional opinion. That makes it an appraisal. And he also has PROSPECTIVE INTEREST in the property...ie...he's trying to negotiate a listing contract!!!

CLEAR USPAP VILOATION....

This "two hats" crap is just that....crap.

Come on folks....get real. It's not hard....READ the friggin rule book!


todd


edit to add...in NC if you are a certified appraiser then any value you give is subject to USPAP....no gray area. If you also hold a realtors/brokers license that makes no difference - in other word - you cannot provide a CMA if you are an appraiser.
 
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No!!! You cannot do both. As a Broker, you can give your client a Fair Market Analysis or CMA. But, you cannot give him an appraisal. It violates USPAP Ethics because you are not an unbiased third party.

I know of an Appraiser/Broker in Colorado who routinely did appraisals for all of his Sellers ..... until the Colorado Real Estate Appraisal Board found out about it and Revoked his license because it violated the Ethics provisions of USPAP.

I too am a Broker/Appraiser. I go out of my way to only wear one hat with each client.
 
Appraisals typically contain a statement like this:

"I have no present or prospective interest in the property that is the subject of this report and I have no personal interest or bias with respect to the participants in the transaction".

Note the present or prospective interest. Personally, I would not provide an appraisal and a listing of the property.
 
[quote edit to add...in NC if you are a certified appraiser then any value you give is subject to USPAP....no gray area. If you also hold a realtors/brokers license that makes no difference - in other word - you cannot provide a CMA if you are an appraiser.[/quote]


Not saying that is not the case but please post a link to where it says that in the NC Regulations.

Thanks!
 
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When you provide an opinion of value as an appraiser, that's a "valuation" and all aspects of USPAP (Stds 1&2) would apply.

When you assist a client as a BROKER setting a "price" that is not a "valuation" assignment as defined by USPAP, but you would still be bound by the Ethics rule.
 
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