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2 Appraisals On Property

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normando

Senior Member
Joined
May 2, 2009
Professional Status
Certified Residential Appraiser
State
California
Client hired two appraisers on subject. It's a difficult one to appraise and value could range significantly. Does USPAP has anything to say about two appraisers discussing and sharing information. And if so, do I need to disclose to client and on report?
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Ask the client if they want you to collaborate. There may be some bank rule against it. But I'd share comps with the other appraiser anyway unless explicitly forbidden. If you agree on the comps, then the rest ought to be easy.
 

normando

Senior Member
Joined
May 2, 2009
Professional Status
Certified Residential Appraiser
State
California
Ask the client if they want you to collaborate. There may be some bank rule against it. But I'd share comps with the other appraiser anyway unless explicitly forbidden. If you agree on the comps, then the rest ought to be easy.
I didn't expect you to say that. I thought consensus was to be objective and not let outside factors influence my development process. If other appraiser was to call me, I was going to tell him to go away.
 

CindyR

Senior Member
Joined
Oct 26, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
Client hired two appraisers on subject. It's a difficult one to appraise and value could range significantly. Does USPAP has anything to say about two appraisers discussing and sharing information. And if so, do I need to disclose to client and on report?

If the property is that complex that you must seek assistance from another appraiser then I suggest you must disclose your lack of competency to the client. Then if they tell you to proceed of course you must disclose any appraisal assistance provided to you. And if the client ordered 2 appraisals surely they are looking for 2 independent valuations . it is certainly not their desire to simply pay two fees for the same work.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
What is the intended use?

I've appraised properties where there have been another appraiser (or more than one other) involved. Depending on the intended use, we (the appraisers) may (with the client's approval) agree on certain things regarding the property (effective date, building area, etc.) to ensure we are appraising the same fundamental elements of the subject as-of the same date.

For a partnership buyout, the above is common.

However, I wouldn't characterize agreeing to fundamental elements with another appraiser as "collaboration"; it falls more in line with SOW and identifying/defining some characteristics of the property. And, I'd get the client's approval prior to discussing anything of substance with the other appraiser(s).
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
The three appraiser method is a consensus still recognized in some courts. I have no problem sharing data, but the end result is my own. If I share comps with the other appraiser you reduce the chance of widely variable results. If our choices are widely différent, then someone is probably wrong. The three panel system oft brings a consensus among the three parties, and is a more reliable result usually, even if it has to be done outside USPAP, or presented as one lead appraiser with co-appraisers. Oklahoma uses that system for sheriff sales and estate settlement.
 

normando

Senior Member
Joined
May 2, 2009
Professional Status
Certified Residential Appraiser
State
California
If the property is that complex that you must seek assistance from another appraiser then I suggest you must disclose your lack of competency to the client. Then if they tell you to proceed of course you must disclose any appraisal assistance provided to you. And if the client ordered 2 appraisals surely they are looking for 2 independent valuations . it is certainly not their desire to simply pay two fees for the same work.
If the property is that complex that you must seek assistance from another appraiser then I suggest you must disclose your lack of competency to the client. Then if they tell you to proceed of course you must disclose any appraisal assistance provided to you. And if the client ordered 2 appraisals surely they are looking for 2 independent valuations . it is certainly not their desire to simply pay two fees for the same work.
When there are not that many comps to use, I call that complex and appraised value can vary from different appraisers. Do you think as appraisers we can discuss our appraisal fees with this same client? Interesting...
 

KONA

Junior Member
Joined
Aug 16, 2007
Professional Status
Certified General Appraiser
State
California
Very common in Southern California for a bank to hire two appraisers to appraise complex high-end homes. They usually want two independent opinions of value.
 
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