Appraiser ethics and independence

An appraisal is only worth what its independence is worth. If the number can be influenced by whoever wants a particular outcome, the document is decoration.

The rules that govern this

USPAP's Ethics Rule binds every licensed appraiser in four areas: conduct, management, confidentiality, and record keeping. Designated members of the Appraisal Institute are additionally bound by its Code of Professional Ethics. Both carry real consequences; licenses and designations are lost over these.

What the appraiser may not do

• Accept a fee that is contingent on the value reached, on a deal closing, or on any stated result
• Advocate for a client's position rather than report an independent conclusion
• Accept an assignment while lacking competency in the property type or the market, without disclosing it
• Take on an assignment with an undisclosed interest in the property or the outcome
• Communicate a value conclusion before the analysis supports it
• Disclose confidential assignment results to anyone other than the client and named intended users

Pressure is common and the answer is the same

Appraisers get asked to "take another look," to hit a contract price, or to reconsider for a client relationship. New information and genuine errors always deserve a second look. A preferred answer does not. Those two requests can look similar and they are not.

Why you should want this

The value of an independent opinion is that the other side cannot buy it either. That is the same reason it holds up in front of a lender, a county board, or a judge.

Questions

Call 984-360-8050 or email claude@globalappraisal.net.