Appraiser & Real Estate Sales

[Ariba]

It actually is very clear. Licensed real estate agents acting as licensed real agents do not have to comply with appraisal requirements.

Now that is clear.

If real estate agents also had to comply with appraisal license requirements, then they would not be able to hold both licenses in the first place. That's because the interests are inherently contradictory; e.g., bias for the real estate agent; non-bias for the appraiser.

Should have stopped while you were ahead.

 

[Bob Ipock]

Specifically, a real estate agent that happens to have an appraisal license and is not acting as an appraiser.

"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?"

THIS IS AN APPRAISER ACTING AS AN APPRAISER.

 

[George Hatch]

In terms of appraisal standards "Appraiser" is a role, not a license. A real estate agent or broker or a lawyer or an accountant *acting* in the role of an appraiser can, and from our perspective should comply with the professional standards that go with that activity and that role. Even if they aren't licensed as an appraiser and aren't compelled by regulation or agreement to adhere .


Same thing with the "appraisers performing evals" controversy. Appraiser licensees may not be required by their states to adhere to USPAP when performing those appraisals but that doesn't alter what the professional standards are for their conduct when engaged in "appraisal practice" as that term is defined in USPAP. The states decide what the limitations of the jurisdiction of their appraisal boards so they can decide not to enforce any regs requiring USPAP Compliance so long as that decision isn't in conflict with any of the federal regs.

Going back to the original question, I was referring to the conflict of interest aspect, not whether or not it's actually a violation of the ETHICS RULE. The cert you sign in your appraisal refers to present or prospective interests in the subject as of the date of the appraisal. If your plan is to solicit the listing after your assignment that's a problem. OTOH if the listing comes up 3 years later then it's less likely anyone is going to question your impartiality as of the appraisal date.

Another way to put it is like this: If you are approaching every appraisal assignment with an eye towards possibly listing the property after you appraise it then that's a potential problem. You wouldn't want to develop a reputation for doing that sort of thing.

 

[ramrcdk]

It actually is very clear. Licensed real estate agents acting as licensed real agents do not have to comply with appraisal requirements.

If real estate agents also had to comply with appraisal license requirements, then they would not be able to hold both licenses in the first place. That's because the interests are inherently contradictory; e.g., bias for the real estate agent; non-bias for the appraiser.

Thanks for clearing that up.

 

[The Warrior Monk]

"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?"

THIS IS AN APPRAISER ACTING AS AN APPRAISER.

I believe I discussed this earlier. The answer is that this is clearly not okay. The reason is that the principal broker would be holding the license of the agent who happens to also hold an appraiser license.

So the appraiser, acting as an appraiser, is an agent of the principal broker, and has relationship with not only the principal broker, but all of the subagents.

For me personally, my real estate license is held by a broker who works well outside of the main market area that I work in, so that potential conflict is completely avoided.