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Acting as a Broker.and Appraiser

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Two Hats for Twenty Years

Nothing in USPAP precludes an appraiser from performing the duties of a broker, consultant, or advocate. Just disclose what services you are and are not providing. It's real simple.

I don't know about other states, but in Alabama this is perfectly legal and happens all the time.

Disclose, disclose, disclose.

There have alway been people in this business who do not believe that appraisers should ever be brokers. I don't generally take listings but I have acted as a buyer's agent many times. Good money and in the process gives me a better understanding of the market.
 
Mr. Betts,

hglenbetts said:
First question: I would think that if they the Appraiser specifically, for a value or market opinion, clearly it's an appraisal. If you approach a Realtor for a CMA or BPO (for the purpose of a potential list price) it's not an appraisal. (my opinion... Hopefully it's correct)
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No, all of them are real estate appraisals. The real question is which of them must comply with USPAP and which two do not have to.

Second question: Every time I perform a CMA in my real estate practice, I disclose that I am an appraiser and "it ain't an appraisal" because I am well known with in the community I live and work, and want people to understand the service they are asking for and the service I am providing. Even though as a Broker, I am allowed to perform CMA's for non listing purposes in Michigan, I decline. If it isn't for a potential listing or a buyer client, they pay for an appraisal.
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Really the answers here need to come from your appraisal board. However, this is my take. You are accomplishing little to nothing saying "this is not an appraisal," look at the definition of "Appraisal" in the definition section of your USPAP manual. More meaningful, is you do not want to say "this is an appraisal," because now it becomes confusing as to if you must be in compliance with USPAP or not to be doing it. Ask your board. Both of them, appraisal and realty.

Again, what is your point in disclosing the existance of your appraisal license other than you fully intended for them to know about it? I would think a disclosure statement of "I am only acting within my capacity allowed under my real estate brokers license." would be adequate. Is not going beyond that nothing more than an attempt at puffing regarding your appraiser's license? Very much like a judge instructing a jury to ignore what the person on the stand just said. LOL! Yeah.... "Hey! I'm an appraiser! But ignore that while I work up a nonappraisal opinion of value for you!"

Remember OZ saying to ignore the man behind the curtain?

Webbed.
 
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Do you have to make that $350. Just sell the house and if you must refer the appraisal out to one of your appraiser pal's and call it a day. sell the house


:dancefool:
 
I would not perform both functions for the same homeowner on the same property.

but many of us here seem to be licensed in both areas, as an appraiser and as a broker. to those of you who regularly do both and say you disclose, do you use a written disclosure form which you have your seller or your buyer sign confirming that they understand that you are not acting as an appraiser for them in the course of your duties as their agent.

I took a class the other day in which one of the main attorneys with C.A.R. (Calif. Association of Realtors) taught a class. he didn't seem to think it was that big of a deal to have a written disclosure, but i think it could head off future problems.
 
Get it in writing in NC.

Paul Warner said:
I would not perform both functions for the same homeowner on the same property.

but many of us here seem to be licensed in both areas, as an appraiser and as a broker. to those of you who regularly do both and say you disclose, do you use a written disclosure form which you have your seller or your buyer sign confirming that they understand that you are not acting as an appraiser for them in the course of your duties as their agent.

I took a class the other day in which one of the main attorneys with C.A.R. (Calif. Association of Realtors) taught a class. he didn't seem to think it was that big of a deal to have a written disclosure, but i think it could head off future problems.
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It may not be a big deal in CA, but in NC an agent already is require to have written disclosure of their relationship as an agent with the required Working with Real Estate Agents brochure. I can't see any lower standard of disclosure being expected for not acting as an appraiser.
 
Almost every state, including AL, requires a written disclosure. I simply add to the required brochure that I am a certified real estate appraiser.
 
Samuel Manning said:
Almost every state, including AL, requires a written disclosure. I simply add to the required brochure that I am a certified real estate appraiser.
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You need to do more than say you are an appraiser, you need to clarify how that fact relates to your job with that particular client.

The fiduciary duties of an appraiser and an agent are mutually exclusive. One cannot do both honestly at the same time.
 
Do appraisers have fiduciary duties?
 
I'm a bit concerned that some of the appraisal services offered out there by the "one hatters" might be construed to be BPO's and the person might get into trouble for practicing real estate without a license:rof:
 
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