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? On Sharing Data

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larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
I'm doing an appraisal on a multi million dollar property and just found out from the lender that they are going to need a second appraisal. I have been asked to refer them to another appraiser that would be qualified. No problem with this. Then they asked me if I would be willing to share my data with the other appraiser. I'm a little hesitant about this. I have two questions. First, would sharing the data with another appraiser even with the clients permission violate the USPAP? Second, would anyone else share data you spent time collecting? It also seems that if I just share the data with someone else, not only am I doing their work for them, the other appraiser could just fill out the report with no independent thought.
 

Willie

Senior Member
Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
Sharing data? Happens every day by commercial appraisers. Why he need you info on a residential property? Now there is an interesting question.

Gut feeling, share with him only the hard stuff that you found out, not the stuff he will find out easily.

ie, if you have a comp that he would have not found.

Sounds like bank wants to pay as little as possible on the second appraisal.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Since Texas is a non-disclosure state, we trade data all the time, especially on hard properties, stigmatized properties, unique properties. Million$ homes are a dime a dozen here, so these are not an issue. It's when they start approaching $10M that it becomes an issue.

Roger
 
Joined
Jan 16, 2002
This is common in my local area. Local lender requires 2 appraisals on "jumbo loans" (i.e. $750,000 +). I have no problem sharing the data with the other local guys ( I don't share with out-of town "skippy" types). It's not
a violation of USPAP. The data is very limited to start with
(i.e. very few million dollar sales), and in some cases one of the appraisers may have had the comp as a prior
subject - this lends itself to accurate data.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
The reason they want you to share data is so the other appraiser can come in at the same value by using the same comps! I personally wouldn't do it.


I do a fair number of RELO appraisals and they specifically forbid us from communicating with the other appraiser. Every once in awhile my brother or my ex-brother-in-law becomes the other appraiser. Hmmmmmm.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
I have shared data, and received data, with a couple of other appraisers that I know are good and reputable. The others (number hitters) can find it on their own. :twisted:
And as for out-of town "skippy", I'll consider SELLING data. :mrgreen:
 

TEL2002

Elite Member
Joined
Jan 16, 2002
Professional Status
Retired Appraiser
State
Louisiana
I think the issue is one of ethics.

If you share data you have on file for an appraisal a friend is doing...go for it. But to share the data you have compiled for a specific property so someone else can appraise that same property i think is a basic nono. The lender is looking for two independent opinions...they will not get this unless both people do independent research. Yes, the other guy may have a tough time, and yes the other guy may find something you did not...so be it...that is the nature of the beast.
 

GeorgiaBoy

Junior Member
Joined
Jul 23, 2003
Professional Status
Licensed Appraiser
State
Georgia
I think Mr. Lawrence and Mr. Garrett said it best. I don't have a problem with sharing data generally, but doing it in this case defeats the purpose of the second appraisal and is counter to your clients interest.
 

Phil Rice

Member
Joined
Apr 22, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
The client asks you to share data, and the reply is:

Nope, I refuse because I know better than you do what is in your best interest

?????

This does not make sense to me. My suggestion is to be very clear about whose best interest you are concerned with. There is nothing wrong with looking out for your own best interest, and there is no need to apologize.

There seems to be a general consensus that "out of town" appraisers are bad people, usually named Skippy, and it is a good thing to refuse to help them and make their lives miserable. I try to assume that the other appraiser is OK until I have some reason to think otherwise. Now if his name really is Skippy, sure, that is another story.

If the client wants you to share data, where is the problem with that? They will understand that the benefit of the 2nd appraisal may be limited to a second opinion on the interpratation (sp?) of the same data. I see this as a business decision. It involves more work, and it is a really good excuse to charge a higher fee.
 

Stone

Elite Member
Joined
Feb 1, 2002
Professional Status
Certified General Appraiser
State
Wisconsin
As was mentioned earlier, I share data on land/commercial appraisals all the time, as data is much harder to come by. I presume that since this is a higher end property, data is more limited, and your client may have had a hard time getting someone to take on the assignment. I don't see any ethical problem...sharing data doesn't mean the other appraiser has to use it, or only consider your data. It also doesn't mean your value conclusions will be the same. Plus, someday you may need a little assistance finding out about a property that doesn't have readily available info, and you can give this second appraiser a call. I have never turned anyone down who was looking for data.

The only thing that is a little different here, is that your client asked you to share, and that is not how it normally gets done with the type of work I do. I usually call appraisers who I know have worked in the area. I suppose if it isn't a particularly good client, you could tell them that you will share for a small fee. I personally would just do it.

My belief is that sharing data is one of the few things that we can do to help each other, and it has come around again and again for me. I just don't share my value conclusions.
 
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