Broker/Appraiser

[PJK03]

Hello folks, I saw something a while ago on this site, but I don't remember where. So here goes, I am a broker/residential appraiser. I want to offer a free appraisal if someone lists with me. I will explain to them it is only for their personal use. Aside from that, is this legal, ethical, good idea, or bad idea. I would like to hear the various opinions out there. Thanks


P.S. Don't get hung up on my status. I am no longer a trainee.

 

[Mike Kennedy]

"I want to offer a free appraisal if someone lists with me."


Appraisal Certification & Limiting Conditions

a. Statements of fact contained in this Report are true and correct.
b. Reported analyses, conclusions, and opinions herein are limited only by the reported assumptions, and the Limiting Conditions attached hereto, and are my personal, unbiased, impartial, and professional analyses, conclusions, and opinions.

c. I have no present or prospective interest in the Subject Property and I have no personal interest or bias with respect to the parties involved.


Suggest choosing which Hat you're gonna wear...... and NEVER wearing BOTH at once.

Broker; cma / BPO

Appraiser; appraisal.

 

[DWiley]

Why not get the opinion of the ASB. Take your copy of USPAP, and turn to AO-21.

Being an appraiser required independence, objectivity and impartiality. How can you have those while also being the agent hat?

 

[PJK03]

Thanks for the quick responses. what if I didn't use the URAR form? I understand the certification statement on the URAR completely voids my idea, but don't we as appraisers have the option of using a different format when doing an appraisal not for a financial transaction?

 

[DWiley]

If you do an appraisal, your report must contain a certification similar to the one in Standards Rule 2-3. So, you still have the same issue, whether you use a Fannie Mae form or not.

AO-21 has an example (the Liz Ross Example) specifically addressing your situation.

 

[Mike Siegfried]

Yeah, I think you've got a bigtime conflict of interest there. I actually do quite a few pre-listing or pre-relisting appraisals and I am always quite clear that although I am also a licensed broker (haven't worked as one for 16 years), I am there to do an objective appraisal period. No referrals to brokers, no "discount on a re-do if the buyer's lender wants to hire me later". You pay me, I do the fair market appraisal, we're done. BTW, I would be VERY careful about what you tell a client as an appraiser and what you tell them as a Broker. I would think that as an appraiser you would be held to a higher standard of care than as a Broker.

Mike

 

[PropertyEconomics]

A duck is a duck ... you cant call it something else ... I would suggest you list or appraise but not do both .... then again if you dont mind questions of being biased, partial, and violating USPAP ... go right ahead.

Why would you even think of such an offer? I swear every day things get stranger.

 

[Jim Buckner]

Probably not a good idea. Offering your appraisal services for free only diminishes you as an appraiser in the eyes of the consumer in addition to the conflict of interest items listed in the other posts. Your market knowledge and skill should enable you to provide excellent BPO's for prospective clients for free if you wish. Remember to identify probable sale price and not "value" in the BPO.

 

[Mountain Man]

Offer a jam up CMA.

 

[Bama Bayou]

Two hats can look really silly when both are worn at the same time. List the house if you want but leave the appraisal hat on the rack. However, you don't have to leave your brain it.

Some folks around here have a big problem with two hatters even though brokers invented the appraisal profession and the AI after the market crashed in 1929.