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Dual License (appraiser & Agent) In Nys

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KB181

Thread Starter
Freshman Member
Joined
Oct 16, 2017
Professional Status
Certified Residential Appraiser
State
New York
I have seen this touched on in several threads with no real definitive response. I am a Certified Residential Appraiser in NY (and have been for 13 years) and am currently in the process of getting a Real Estate Salespersons license. I will NOT take any appraisal work that conflicts with any work I will do as an agent. I will clearly NOT be working in an appraisal capacity when I am taking listings and or doing CMAs, but am concerned with the appropriate level of disclosure to cover myself under both licenses. Should a disclosure regarding the capacity in which I am giving an analysis of value be given in writing or verbally? Does any one use a standard disclosure statement indicating that they are a Certified Appraiser but are giving an CMA ONLY in the capacity of an agent? Any info or advice would be appreciated.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
I have seen this touched on in several threads with no real definitive response. I am a Certified Residential Appraiser in NY (and have been for 13 years) and am currently in the process of getting a Real Estate Salespersons license. I will NOT take any appraisal work that conflicts with any work I will do as an agent. I will clearly NOT be working in an appraisal capacity when I am taking listings and or doing CMAs, but am concerned with the appropriate level of disclosure to cover myself under both licenses. Should a disclosure regarding the capacity in which I am giving an analysis of value be given in writing or verbally? Does any one use a standard disclosure statement indicating that they are a Certified Appraiser but are giving an CMA ONLY in the capacity of an agent? Any info or advice would be appreciated.
You will wear two hats
Disclose that you wear two hats.
Do not appraise market value when providing a suggested list price
Do not provide suggested list prices when you appraise.

Never opine market value when trying to get a listing. Only opine the "Best Price the Market Might" pay.

As an agent, you are an agent, with a fudiciary responsibilty to get the BEST PRICE the market will pay, NOT the most probable price based on fair and knowledgeable blah, blah blah. Your seller needs ONE buyer, not three typical ones.

.
 

KB181

Thread Starter
Freshman Member
Joined
Oct 16, 2017
Professional Status
Certified Residential Appraiser
State
New York
In your opinion, should the disclosure be in writing or is verbal sufficient?

You will wear two hats
Disclose that you wear two hats.
Do not appraise market value when providing a suggested list price
Do not provide suggested list prices when you appraise.

Never opine market value when trying to get a listing. Only opine the "Best Price the Market Might" pay.

As an agent, you are an agent, with a fudiciary responsibilty to get the BEST PRICE the market will pay, NOT the most probable price based on fair and knowledgeable blah, blah blah. Your seller needs ONE buyer, not three typical ones.

.[/QUOTE
 

KHS445

Member
Joined
Aug 20, 2011
Professional Status
Appraiser Trainee
State
Michigan
While your question wasn't directed to me I would strongly recommend getting an acknowledgement from your customer/client in some sort of recorded form. It is a lot easier to have something you don't need, then to need something you don't have. I also hold both an a appraisal and real estate license and have always followed the belief that when in doubt disclose. But then again I am also a belt and suspenders type of guy.
 

Tony V

Elite Member
Joined
Mar 29, 2005
Professional Status
Certified Residential Appraiser
State
New York
In your opinion, should the disclosure be in writing or is verbal sufficient?
I would suggest that in writing would be the proper way, thus avoiding the ole, ""He said, She said"" situation.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
I don't put it in writing.

I tell my people I'm also an appraiser. It's on my business card, and in my MLS, and my email.

Whenever I address anything concerning numbers I tell them it is not an appraisal and I usually let them tell me the number (hint). I just point out certain things.

Whenever I write a CMA, I use my own format - not the one in the MLS, as ours does not contain enough disclosures to make me happy with everyone having a full understanding of what the CMA is and is not, and that I am not acting as an appraiser, I have not been engaged as an appraiser, and I have no client for an appraisal service (USPAP hint for CMAs), and that the market data and information is for the best price of either the buyer or the seller.

Naturally when the seller's agent you are looking for the highest price you can find support for, and as the buyer's agent you're looking for the lowest price that won't tick off the sellers, yet is reasonably expected within the market. Especially with buyers; reasonable price is a key term to get them to understand. We just can't sell properties for $1.00 because it's the best price for a buyer, And you just can't get a buyer needing financing ot overpay for a property because it's the best price for the seller. Reasonable price is not market value (Another hint for you).



.
 

azbassman21

Junior Member
Joined
Apr 1, 2011
Professional Status
Certified Residential Appraiser
State
Arizona
I don't know why you couldn't appraise a property, then list the property if you provide full disclosure on the situation. I wouldn't want to miss out on a listing just because I did a private appraisal for a private party, then was asked to sell the home. I would think a reasonable appraiser would still provide their honest opinion of value regardless of if they got a listing or not.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
I don't know why you couldn't appraise a property, then list the property if you provide full disclosure on the situation. I wouldn't want to miss out on a listing just because I did a private appraisal for a private party, then was asked to sell the home. I would think a reasonable appraiser would still provide their honest opinion of value regardless of if they got a listing or not.
You can,
You just have to disclose your interest in the property or the transaction.

But if you "appraise" the property, your report must follow USPAP and you will have an appraiser/client relationship.

However, at least here, our agency agreements are for services as a salesperson, not as an appraiser. You're gonna need to read the fine print on your agency agreements, and understand your board's tolerance level for mixing the two services.

Better just to provide a solid CMA, sell the property, and not have to worry about missing a USPAP requirement or some other such nonsense associated with the appraisal, that does not come into play in a CMA.

.
 

azbassman21

Junior Member
Joined
Apr 1, 2011
Professional Status
Certified Residential Appraiser
State
Arizona
You can,
You just have to disclose your interest in the property or the transaction.

But if you "appraise" the property, your report must follow USPAP and you will have an appraiser/client relationship.

However, at least here, our agency agreements are for services as a salesperson, not as an appraiser. You're gonna need to read the fine print on your agency agreements, and understand your board's tolerance level for mixing the two services.

Better just to provide a solid CMA, sell the property, and not have to worry about missing a USPAP requirement or some other such nonsense associated with the appraisal, that does not come into play in a CMA.

.
If you complete an assignment according to USPAP, and do it with honesty and integrity, I can't see how you would have to worry about a violation. Obviously not completing appraisals will prevent exposure to any liability, but I am pretty sure disclosure is key here. This is a binary issue. I can't understand how a brokerage ould tell you not to engage in a property for a listing in which you've just analyzed far greater than any other realtor would.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
If you complete an assignment according to USPAP, and do it with honesty and integrity, I can't see how you would have to worry about a violation. Obviously not completing appraisals will prevent exposure to any liability, but I am pretty sure disclosure is key here. This is a binary issue. I can't understand how a brokerage ould tell you not to engage in a property for a listing in which you've just analyzed far greater than any other realtor would.
I'm not worried.
But,
If you have an agency agreement for services as a sales person, and then you perform services as an appraiser, you have a "contract" issue, which is a binary issue, not only because some states require fee splits with brokers, and some brokers require fee splits with them and some brokers E&O is supposed to cover everything you do and say, but also because,

as an "agent" you are the "agent" of the broker. Not of yourself, Not of buyers and sellers. That is your agency agreement, and now because of it, your broker is now an interested party to your appraisal.

So, as I said, you need to read the agency agreements in your state, especially the fine print to know, if you are going to have an issue with the RE Board. if you go and write an appraisal, as an interested party with an agency agreement for a transaction both you and your broker have an interest in.

But for what reason or purpose would you write an appraisal? will the buyers and sellers claim you tried to sway them? Heck you appraised the property and they only wanted an agent,

Don't invent issues for yourself because you like writing values in a specific format and want to continue that.

.
 
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