Appraiser & Real Estate Sales

[Ariba]

It would be a definite perceived conflict of interest and bordering on a USPAP violation if not disclosed carefully. I don't believe many brokers in charge folks would allow that.

I was unaware the real estate agents can violate USPAP. Also, it appears from most of the comments and without knowing the specific facts that appraisers are biased and unethical.

 

[Bob Ipock]

I was unaware the real estate agents can violate USPAP. Also, it appears from most of the comments and without knowing the specific facts that appraisers are biased and unethical.

USPAP does not apply to brokers. In this thread there was an appraiser involved.

 

[Bob Ipock]

"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."

From the first post where the poster is an appraiser trainee.

 

[Ariba]

USPAP does not apply to brokers. In this thread there was an appraiser involved.

So what? Are you saying without any specific information they are unethical or biased when taking a listing of a property they appraised in the past?

 

[Digger88]

of course you can and i have a broker license and i would have no problem doing this. some people say your shouldnt even do dual agency even though its 100% legal to do. i love dual agency!

 

[Bob Ipock]

So what? Are you saying without any specific information they are unethical or biased when taking a listing of a property they appraised in the past?

Here is the question last asked by the OP.


"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."

We all have opinions. My opinion is that there would be a perceived ethics issue by many looking at that question. Some people looking in might assume some violations of the Ethics Rule did or would take place even if they did not. This is an issue of "Public Trust" where (p 7 line 174, 2020-2021 USPAP) it is important the described assignment does not look, seem or smell questionable . Some appraisers have no issue with such an assignment and some do. Every situation is different and this one seemed to slide around a good bit.

 

[The Warrior Monk]

USPAP does not apply to brokers. In this thread there was an appraiser involved.

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

 

[The Warrior Monk]

Yes: Since USPAP Compliance Disclosure: " I have NOT performed services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. For the past "3 years" right?

A different HAT: Being a BIC, I would not want an agent wearing BUT a 1-sided Hat, no Dual Agency, be it disclosed or not.

To an end: It is impossible to comply & also wear TWO hats at the SAME time, 3 years respectively. Again, the initial Poster indicated the thread was a "hypothetical".
Be it " impure " thoughts or not!

The disclosure is included in the signed certification. Where exactly does a real estate agent not acting as an appraiser and not engaged in an appraisal assignment put the signed certification? There is no assignment, no workfile, and no report to put it in.

If you can cite where in your license law that the appraisal license applies to non-appraisal activity, or that the appraisal license supersedes a real estate sales/brokers license, I would like to review that reference.

 

[Ariba]

The disclosure is included in the signed certification. Where exactly does a real estate agent not acting as an appraiser and not engaged in an appraisal assignment put the signed certification? There is no assignment, no workfile, and no report to put it in.

If you can cite where in your license law that the appraisal license applies to non-appraisal activity, or that the appraisal license supersedes a real estate sales/brokers license, I would like to review that reference.

Now that is as clear as mud.

 

[The Warrior Monk]

Now that is as clear as mud.

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.