Broker/Appraiser

[Restrain]

Do a CMA, call it a CMA, not an appraisal. Same end result, in that potential seller gets the data they need.

 

[Mike Kennedy]

Thanks for the quick responses. what if I didn't use the URAR form? I understand the certification statement on the URAR completely voids my idea, but don't we as appraisers have the option of using a different format when doing an appraisal not for a financial transaction?

USPAP 2008–2009

Standards Rule 2-3:icon_idea:


[FONT=Arial, sans-serif]Each written real property appraisal report must contain a signed certification that is similar in content to the following form:[/FONT]
[FONT=Arial, sans-serif] [/FONT]
I certify that, to the best of my knowledge and belief:


—
the statements of fact contained in this report are true and correct.

—
the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.


—
I have no (or the specified) present or prospective interest in the property that is the subject of this report and no (or the specified) personal interest with respect to the parties involved.


—
I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

 

[Mike Kennedy]

WRONG thread. oops.

 

[Hank Outlaw]

Interesting thread... It appears that there is a general concensus among the forum that you should not do both. I concur, as a practitioner in both fields, I have made every attempt not to "muddy the waters" so to speak. I have a friend / colleague that begs to differ. Nevertheless, I believe that the safer route may be to steer clear of appraising for a listing. As Mel suggested, do a bang up CMA and explain the difference between an appraisal and a CMA, an appraiser and a real estate agent, and that while you have expertise in both fields, you are not appraising the property, however your appraisal background does lend credibility... or so I'm told by fellow agents and buyer / seller clients.

Hank

 

[Elliott]

PK,
There is no such thing as a "free appraisal."

When I think of the ethics of appraising, I've concluded that
people want my objective, unbiased estimate of the market
value of the property. I've never wanted or even thought of
buying or selling (I use to hold a broker license, state requirement),
or obtaining for my own account anything I've appraised, past,
current, or future. Try putting on two hats at once, not easy.

 

[Amy Perkins]

Bad idea, there is a conflict of interest in your appraisal offer.

 

[The Warrior Monk]

Offer a jam up CMA.

That's the ticket.

Don't be flipping the appraiser and agent hats on and off like you're starring in some Broadway show. Do one or the other.

 

[Mike Kennedy]

FREQUENTLY ASKED QUESTIONS



21. THINGS OF VALUE RECEIVED for PROCUREMENT OF AN ASSIGNMENT

Question:
Are appraisers required by USPAP to disclose the payment of cash or other things of value to clients in order to obtain assignments?

Response:
Yes. The Comment to the Management section of the ETHICS RULE states that:



Disclosure of fees, commissions, or things of value connected to the procurement of an assignment must appear in the certification and in any transmittal letter in which conclusions are stated.

 

[Mountain Man]

My internet went bizerk and I couldn't finish me answer....

There is nothing wrong with using your appraiser skills to assist a listing client determine what their property is worth, and where they should list it. In appraising, we are working towards "Market Value". In a CMA, we are looking at a most likely sales price within a specific marketing time. Different definitions of value. As a fellow broker/appraiser, my clients seem to appreciate and get more help when I offer a full picture of the market including what's their competition in active listings, which listings failed in expired, and what's selling in 60 days, 90, days, and over six months. So I'd say do a jam up CMA and give them the whole picture, not just a number.

 

[timd354]

Hello folks, I saw something a while ago on this site, but I don't remember where. So here goes, I am a broker/residential appraiser. I want to offer a free appraisal if someone lists with me. I will explain to them it is only for their personal use. Aside from that, is this legal, ethical, good idea, or bad idea. I would like to hear the various opinions out there. Thanks


P.S. Don't get hung up on my status. I am no longer a trainee.

It sounds to me like you need to retake a USPAP course....maybe a better USPAP course then you took last time....or maybe you should try reading USPAP.......truthfully, if you cannot see the obvious conflict of interest and violations of USPAP inherent in doing what you have proposed then your license to appraise should be taken away from you.....this is really basic USPAP 100 and the fact that you even asked the question shows that you do not have even a basic grasp of USPAP.
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