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Appraiser & Real Estate Sales

Hylopeeko

Thread Starter
Freshman Member
Joined
Oct 23, 2019
Professional Status
Appraiser Trainee
State
New Jersey
Is it a violation or conflict of interest if a certified appraiser sells a property he/she appraised in the past if the appraiser discloses the prior appraisal in the listing agreement and to the seller? Thank you.
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
Can you coach a Little League team and act as the umpire without getting hassled for it by Karen, who is the Team Mom for the other team?

No, you can't. Ir's a fundamental conflict of interest and your impartiality will be suspect even if you do act fairly and impartially.


It's not too soon for you to come to an understanding that the primary attribute an appraiser sells is their objectivity and impartiality, and their complete disregard for how the deal turns out or what direction or outcomes any of the principals want. It is not your value conclusions or your signature at the bottom of an appraisal report that is marketable. What you really sell is your role as the outside party, the disinterested 3rd party opinion, the apathetic weigher of facts. You wanna be Spock, not Kirk.
 

David Wimpelberg

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
In the way this is being presented, I would say no.

Can an appraiser sell a property that the appraised has appraised in the past? It depends. At minimum, the situation would have to avoid the appearance of a conflict of interest. For example, I don't believe that there would be a conflict interest if the person that owned the property has since sold the home and the appraiser is representing a subsequent owner that the appraiser had no relationship with.
 

ramrcdk

Senior Member
Joined
Jan 15, 2008
Professional Status
Certified Residential Appraiser
State
North Carolina
In the way this is being presented, I would say no.

Can an appraiser sell a property that the appraised has appraised in the past? It depends.
DISCLOSE your "hat". How long does the disclosure of a past appraisal history go to involve a more recent agency-relationship? To infinity? for an appraisal : 3 years.
Were you conflicted? biased? Likely not.
Hopefully, you were not acting as a "dual agent" ;)
Important "info" left out of the post...to be of help.
Many small towns have appraisers also in the business of Realty, for example. We would have a type of notarized "all party disclosure form" via an attorney, CYA... back in the day, way way back.
Being nice- a good guy can get you in trouble these-daze.
Good question & I really don't have the answer.
 

jay trotta

Elite Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
Can you coach a Little League team and act as the umpire without getting hassled for it by Karen, who is the Team Mom for the other team?

No, you can't. Ir's a fundamental conflict of interest and your impartiality will be suspect even if you do act fairly and impartially.


It's not too soon for you to come to an understanding that the primary attribute an appraiser sells is their objectivity and impartiality, and their complete disregard for how the deal turns out or what direction or outcomes any of the principals want. It is not your value conclusions or your signature at the bottom of an appraisal report that is marketable. What you really sell is your role as the outside party, the disinterested 3rd party opinion, the apathetic weigher of facts. You wanna be Spock, not Kirk.
My bold (Agree 100%)
 

USPAP Compliant

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
If you have to ask the question, you already know the answer. Given a choice, disclose so there is no question of your intentions.
 

Amy Perkins

Senior Member
Joined
Jul 20, 2003
Professional Status
Certified Residential Appraiser
State
Tennessee
Is it a violation or conflict of interest if a certified appraiser sells a property he/she appraised in the past if the appraiser discloses the prior appraisal in the listing agreement and to the seller? Thank you.
Disclosure is not the issue. I see the main issue as did the appraiser perform the appraisal in order to procure the listing. How did you procure the listing? The the owner solicit your business or did you market yourself as an agent while appraising the property? One thing for sure you may not sell the house and then appraise it. I agree that timing may be an issue at hand and one may have a tough time proving that you did not market yourself as an agent while appraising the property. The point of all this is you should have NO reason or motivation to appraise the property at a certain value. An appraiser should have no motivation other than to get the value as accurate as possible. If you feel influenced in any way or pressured you should cancel your appraisal or wait until their influence has passed. Never think about the person, it is about the house.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
So you are selling the property as an "agent" or "you own it" and are selling, but you once did an appraisal?

I always like to tell the story of a local appraiser who came in $50,000 low on a property and then bought it. The owner figured it out that she'd been scrued and was fond of telling everyone in the neighborhood about what she thought about the appraiser.

If you want a simpler life, best to avoid the appearance of a conflict of interest.
 

David Wimpelberg

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
DISCLOSE your "hat". How long does the disclosure of a past appraisal history go to involve a more recent agency-relationship? To infinity? for an appraisal : 3 years.
The disclosure does not apply agents.
 

Hylopeeko

Thread Starter
Freshman Member
Joined
Oct 23, 2019
Professional Status
Appraiser Trainee
State
New Jersey
Appreciate ALL you folks insight. I do not even have a real estate license, but am a novice appraiser so sought out insight from my peers on this topic.

What is your opinion on appraising a property for sale that is listed in the same office you hang your real estate license? Ok or not ok?

Again this is a hypothetical as I do not even possess a real estate agent license. Thanks.
 
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