• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Questions that beg an answer?

Status
Not open for further replies.

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
What does USPAP consider an interest in a property you may want to do as an appraisal? Define Interest please.

What does USPAP say about disclosing the interest you have in a property that you may do an appraisal report for?

Question that needs to be answered:

Law firm calls me and wants to contract with me to do a personal property and a real property appraisal on an estate. They also want me to handle the auction for the personal property and the real estate in the estate.

Now as a license auctioneer, license auction company and a license appraiser do I have an interest in the both the personal property and the real estate if I agree to sell all or any part at auction?
 

Robert Hronek

Junior Member
Joined
Jun 3, 2003
Professional Status
Certified General Appraiser
State
Nebraska
Possibly. I think it goes to your ability to be impartial. You stand to make a commission from the auction. Does it mean you can't be impartial - NO. I just think I would discuss this with the client and note it in the report.
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
I believe interest means ownership interest?

You don't have any interest in the real estate if you aren't going to be affected by the outcome of your appraisal. Are you an impartial third party? You bet you are and you state that in your report.

I don't think being involved in the auction (personal property) (separate from the value of the land) has anything to do with the property (real estate)
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
You have an appearance of conflict. USPAP, in my view, does not prohibit actual conflict, no less prohibit appearances of it. For example, in the cert you are required to disclose conflict.

I think that you "interest" is not so much in the property, but in the outcome of the appraisal phase of the assignment. That is, some might think that higher or lower value results may make it more likely for you to make commssions as the auctioneer; and that this "interest" will or could cause you to bias your appraisal.

I think it is up to you to measure how "changing hats" within what can be perceived as one "assignment" will affect your apparent credibility, impartiality and integrity. Recognize that you are leaving yourself open to criticism, which you must have sensed or you wouldn't have asked the question.

I believe a certain percentage will argue that playing both roles is in some way unethical and will try to make a USPAP case out of it.
 
Last edited:

Stone

Elite Member
Joined
Feb 1, 2002
Professional Status
Certified General Appraiser
State
Wisconsin
I agree with Steven. And, I would add, considering your recent history with our board, perhaps an appearance of conflict is more of a problem for you at this time than it might be with someone else...fair or not.
 

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
If you appraiser to low eveyone will be happy with the out come of the auction. If you appraise to high, and your auction did not meet your appraisal your butt is grass and the estate is the lawn mower.

Heck of a decision.
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
Ray,

Why not ask your accusers on the Wisconsin Appraisal Board for some direction on this one?

If they say disclose and go ahead it's okay, as long as it's in writing, if they say no, then decline the part with the lesser pay.
 

Stone

Elite Member
Joined
Feb 1, 2002
Professional Status
Certified General Appraiser
State
Wisconsin
Ray,

Why not ask your accusers on the Wisconsin Appraisal Board for some direction on this one?

If they say disclose and go ahead it's okay, as long as it's in writing, if they say no, then decline the part with the lesser pay.

That seems like pretty good advice.
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
Ray, Please post their reply if you are able to get one. It would be enlightening to us all.
 

Andy Taylor

Member
Joined
Sep 22, 2003
Professional Status
Certified General Appraiser
State
North Carolina
I believe I would decline to do both the appraisal and the auction. But would be comfortable to do one or the other(if I was an auctioneer as well as an appraiser). I think it goes to the appearance of impartialility. Yes you may do everything above board but there might always be questions and doubts.

As you said yourself you could be high or low and somebody is going to be upset.

I'd pick the one with the highest return in $(and hopefully the lesser potential amount of grief) and pass on the other.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks