Top 10 things Attorneys should know about appraisals.

[Mike Boyd]

(1) Note the difference between license categories, Trainee, Licensed, Certified Residential, Certified General.

(2) Discuss the importance of data sources, experience in the local market where the subject is located and the importance of the physical inspection. Discuss why the desktop appraisal or drive-by might not be in the best interests of their client.

(3) Remind them of IRS regulations - I think they are covered in Circluar 230 (check it - don't quote me).

(3) Teach them the difference between an appraiser and a property inspector. Discuss the role of the sales agent/broker.

(4) Discuss Intended Use, Intended User and SOW.

(5) Discuss E&O insurance.

(6) Discuss the typical types of pressure appraisers have faced in the last 2-5 years. Pressure to hit value, pressure for rapid, if not recklessly short t-times.

(7) Discuss "comp searches" - why there is no such thing - why we can't give preliminary estimates of value.

(8) Discuss the new AQB requirements for Certification.

Just off the top of my head.

Good list, Mike! I think I might add why it is important that I get paid in advance.

 

[Dennis J. Black ASA IFAS]

Standard of Care.

 

[Ray Miller]

Supplemental standards that someone may require.

SOW of the appraisal.

Court time.

As well as the others mention.

 

[Ariba]

Also remember, besides being aware that USPAP exists, attorneys do not care about the minutia. Keep it on a very high level.

I would use USPAP themes, but at a high level. One of the basic things they need to know is that an appraiser must not be an advocate, but must remain independent, impartial and objective..

What is a high level or very high level?

However, in the next sentence: "one of the basic things ........

I vote to keep to the basics unless you are an expert in USPAP and then be ready for the questions.

 

[ZZGAMAZZ]

Make sure they are aware that your expertise prior to the trial date can be instrumental in usurping the integrity of the appraiser hired by opposing counsel--for a fee of course.

 

[jay trotta]

KISS;

how much time do you have to speak ?

Pick subjects you can cover in that time; prepare you thoughts well (cheat sheet cards) and at the end allow them to obtain some of your cards.

 

[Carnivore]

I don't think lawyers want to hear about USPAP, too complicated to understand after one little session.

What idiot would send a trainee to do a divorce appraisal???????

Lawyers are in business to win cases. Teach them the difference between good and bad appraisals. Bring them an example of a bad appraisal and a good appraisal of the same property. Explain to them they want an appraiser who will fully support his value of opinion in the report.

Tell them how to discredit a report. Explain to them what a review appraisal is and how they can use it to their advantage.

Tim, I am with you. Danny mentioned taking care in not being an advocate and he is correct as ususal. What your suggesting and what I believe also, is that you can be of invaluable service to a attorney. You do this by being on there side and showing them not only how they can win. but how they might lose if they are not careful.

If I was speaking to the group I would show them how I can save them time and money also by not doing anymore then is necessary to see if your service IN COURT will help them win. If your a help, then you move forward, if what you do will hurt there case then stop there and bill them apropriately.

 

[larryhaskell]

I just spent a couple of hours today talking to a couple of attorneys about doing some work for them in two court cases. The one concept they just couldnt grasp was that sale price doesn't necessarily equal value. To them, a willing seller and buyer equals sale price equals value. I finally gave up. Next meeting I'm taking the definition of market value and see if that helps.

 

[Michigan CG]

Tim, I am with you. Danny mentioned taking care in not being an advocate and he is correct as ususal. What your suggesting and what I believe also, is that you can be of invaluable service to a attorney. You do this by being on there side and showing them not only how they can win. but how they might lose if they are not careful.

If I was speaking to the group I would show them how I can save them time and money also by not doing anymore then is necessary to see if your service IN COURT will help them win. If your a help, then you move forward, if what you do will hurt there case then stop there and bill them apropriately.

Mr. Meateater, we are once again on the same page.

There is nothing better than turning in a fully justified report with market support and getting the opportunity to discredit a poorly written report from "the other side" because they chose to go with the cheap guy.

"Skippy" thinks he is good until he goes to court and gets his tail handed to him. He does not know what he does not know.

 

[Lee Lansford]

Hi, I have been asked to speak to a group of attorneys on the topic of: The top 10 things attorneys should look for in appraisals". I have my ideas, however I come to my peers to crystalize the thought process. What say you.

Tell the attorneys that many appraisers aren't very good at what they do.