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Conflict of interest?

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Craig Sewell

Freshman Member
Joined
Feb 6, 2002
I have been asked to do a relo appraisal on a house in a subdivision about 12 miles from my home and office. I happen to own the house next door to the subject house (I keep it as a rental). Do I have a conflict of interest in appraising this subject? My rental house is substantially different from the subject and would normally be given none or very little consideration in an appraisal. What are your thoughts?
 

George W Dodd

Senior Member
Joined
Jul 9, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
I would disclose this fact to the client and put the disclosure in the appraisal report as well.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Unless you plan on buying it, I can't see where owning adjoining property makes for a conflict. Besides, with as a rental house, it's all about the $$ flow.
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
I lived in a large subdivision, and performed several appraisals in the subdivision. Many of the borrowers did not know me. I always stuck inthe appraisal somewhere, The appraiser, in the past 10 years, has owned and lived in 3 different homes in the subejct subdivision.

I usually had a good time when an upset borrower called, telling me I didnt know or understand the area, that I was low, I had know idea how hot the market was. I would ask if he had a copy of the appraisal, then point him to that line.
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
I'm with you Bill.

For the past 2 1/2 years, I've lived in a 4500 acre rural development with about 850 houses, a couple of lakes, golf course and airstrip. Over the past 9 years I've more appraisals out here than anybody.

I'll get an assignment within the development and when I get there, the owner (usually from down state at his weekend home) will start telling me all about the development and how wonderful it is. Sometimes I just let them go on and on, trying to sell me on how great it is and of course, trying to influence values up. Then I just casually mention that I am really aware of all of these things because I live up in the N/E section.

What fun to see the sales pitch totally deflated. But it is good to see the homeowner enthusiastic about their development and the area we live in.
 
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