Acting as a Broker.and Appraiser

[Bama Bayou]

Of course I discussed values with everyone I've worked with as a broker.

 

[Pat Butler]

Your state must be different than ours. We can't turn off our appraiser roll when discussing values. USPAP is always there.

 

[Bama Bayou]

USPAP is always on here too. The only thing I have been saying on this thread is what I have always been told in many appraisal classes. Yes, you can be an appraiser and a broker, and no, you cannot do both at the same time on the same property.

The following is a bio of a someone I have known for about 20 years. He is an AL appraisal board member. He also is an active broker and has listings all over the place.

"Gene graduated from Mississippi Southern College with a degree in Business Administration with an emphasis on real estate. He opened his real estate appraisal office in Huntsville in 1970, and in 1975, Gene obtained the MAI designation from the American Institute of Real Estate Appraisers. He has served the Appraisal Institute in numerous positions on a voluntary basis, including Secretary/Treasurer, Vice President and President of the Alabama Chapter. He also served nine years on the Board of Directors of the Appraisal Institute, and it’s predecessor, the American Institute of Real Estate Appraisers. Of those nine years, four were served as Regional Chair for Region IX, and two as Vice Chair for Region IX."

Good enough for him, good enough for me. Of the seven appraisers on the AL appraisal board, six have an active brokers license. Apparently, it can and is done.

 

[JJohnson1985]

Here in Ohio, describing one of the rolls of an appraiser...
"Does not advocate the needs or desires of the client or lender."

It would be impossible to say that the listing agent/broker does not "advocate the needs or desires of the client". John Doe agent/broker is John Doe appraiser, you can not separate the two.

So wrong from the appraiser's side.

All real estate agents/brokers have a fiduciary responsibility to their client. That is number one. Fiduciary means to put the client's interests ABOVE your own.

It could be argued that you think your skills are the best available, hence best for the client. I think that the opposite argument is stronger though. It would be in the best interest for the client to have a separate, non-partial party appraise the real estate, while also using your opinion as an/a agent/broker. From the client's point of view, two is better than one.

So wrong from the agent's/broker's side.

I am not licensed but from what I know this is the way I would look at it.

I do like the perspective in an earlier post that simply asks, "Is $350 worth it?" Risking both careers, plus risking your reputation in the industry is not worth it to me. Just call me :new_newbie:

 

[Lee Lansford]

Okay, there are a few streams of thoughts going on in this string, so I hope that I am addressing something that remains pertinent:

Yes, a licensed appraiser, who is also a licensed real estate agent, can wear both hats.

However, I would not even suggest that this person even THINK about wearing both hats regarding one property at the same time.

Just my $.02 !

 

[Jan Roseberry]

It did not feel right to me

. . . so I sold my last house in 1994.

I feel the situation inherently causes conflicts and while I've retained my broker's license it is used for appraisal and consultation related purposes only. I even referred my kids to an active selling broker.

Only people I know that have been successful at both have a good sized office (i.e. four or more employees).

 

[Mike Garrett RAA]

It's just a little bit more expensive to be a broker member of the local Board of REALTORS® but as such we have access to data that isn't available to associate appraiser members. Our licenses are on a three year cycle so one sale every three years more than pays for that expense.