4A — September 14 - 27, 2018 — Appraisal — Financial Digest — M id A tlantic
Real Estate Journal
www.marejournal.com
A ppraisal
By Woody Fincham, Valucentric, LLC (a Trice Group company) Why “Just Any” Appraiser Will Not Do
W
use work. It’s the appraiser’s responsibility – and in his or her best interest – to remind non-lender clients that hir- ing a designated appraiser is worth their time …and, most importantly, their money. Attorneys, financial ex- perts, homeowners and other non-lender consumers and users of appraisal services should tread very carefully when selecting appraisers to make sure they are compe- tent in the type of valuation assignment. Non-lender valuation is a
market niche, often best suit- ed for experienced appraisers who think outside the box. These assignments include appraisal reports performed for situations such as wealth- management, divorce and other litigation related needs. Often, intended users need to find the most qualified and experienced appraisers. Well-vetted experts are most applicable when testimony is a possibility or when looking at unique properties. Select- ing an appraiser limited to only experience with lender
related work could result in less than optimal results. Take attorneys, for ex- ample. They need someone who can write reports well enough to be seamless and defensible, but also handle cross-examination in a trial or the craziness that can be a pre-trial deposition. It takes a good professional to write the report, but an even bet- ter one to be effective on the stand or to help with pre-trial preparation. Often, during the interview process in pre-trial or in court
testimony, the appraiser must be able to communicate complex valuation theory to a jury or a judge who may have no understanding of such things. In other words, the appraiser must become an effective teacher in addition to being a good report writer. Many appraisers who work primarily with lenders − es- pecially since the housing crisis emerged in 2007 − are required to stay confined within a limited scope of work. Lenders often require appraisers to utilize com- parable sales within a very narrow window of time, a small geographic area, and to not exceed lending guidelines when adjusting comparables sales. This can be problematic when dealing with situations that often, or may, end up in court. The cost for an attor- ney to reorder a better report, or to pay a well-qualified ap- praiser to assist in pre-trial analysis, can get expensive quickly. Even worse would be finding that across the court- room, the opponent hired the appraiser he or she should have hired. What is the Takeaway for Consumers? • Ask for a resume and check references. • Take the time necessary to make sure the appraiser is well qualified, beyond just the minimum qualifications. • Look strongly at profes- sional designations such as the MAI, SRPA and SRA designations. • If you are looking for pre-trial consulting that in- volves the review of another appraiser’s report, the Ap- praisal Institute ReviewDes- ignations are a great place to retain talent: o AI-RRS for residential reviews, and o AI-GRS for non-residen- tial reviews. Woody Fincham, SRA, AI-RRS, is the regional vice president of Resi- dential Valuation with Valucentric, LLC in Char- lottesville, VA. He spe- cializes in residential non-lender valuation and review work. Follow him on Twitter, and like him on Facebook.
ith so many ap- praisers vying for appraisal manage-
ment com- p a n y a n d l e nd e r - r e - lated work, many AMC- centered ap- praisers are starting to compete for non-lender work.
Woody Fincham
Most consumers don’t un- derstand the need for ex- perienced and designated appraisers outside of lender
Commercial Real Estate Appraisers
www.njrag.com
Providing Professional Real Estate Appraisal Services to Lenders - Attorneys Government Agencies and Private Individuals For over 35 years
Albert F. Chanese, MAI
Jennifer E. Barany, MAI, SRA Michael Nwosu, SRA 178 Main Street Woodbridge, New Jersey 07095 (732) 853-0271
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