What is the difference between a professional, informed and accurate appraiser and one who is...well, not? After over a decade in this profession, I have thought long and hard about this question. Often, this question gets brought up with the topic of appraisal fees.
An appraisal takes time gathering data, inspecting the subject property, analyzing the data, and finally taking all of the information that was gathered and putting it in a format that can be understood by people who are not appraisers. Although all appraisals are in the end an opinion of value, not all appraisals reach that opinion in the same way. There are different techniques and methods used by appraisers, which is fine. However, there are a few things that I believe separate the good appraisers from the pack...
Good Appraisers are Lifelong Learners
As in any field, good appraisers are never 'finished' with learning. Appraising is a complex, rapidly changing profession. People are either advancing in this field or falling behind. There is no neutral ground. It takes time, effort and a humble attitude to realize that once you stop learning, you are going backwards.
Every appraiser is required to take a USPAP class (USPAP is the "Appraiser's Bible" and includes rules and guidelines for appraiser protocol) every 2 years, and 56 hours of continuing education every 4 years. It is not uncommon for appraisers to wait until the last minute and rush through the classes just so they can keep their license, which makes it hard to learn and absorb information. Although these classes are mandated in order to keep the field fresh and appraisers educated, in reality this is not always the case.
Good Appraisers are Ethical
The Merriam Webster Dictionary defines ethics in the context of business as "The principles of conduct governing an individual or group. Also known as Professional Ethics." Nothing can damage the image of appraising or cost the homeowner more than an appraiser lacking professional ethics. Ethics is not limited to the following items, but they are some of the big issues:
- Does the appraiser keep the assignment and the results confidential?
In completing an appraisal assignment, appraisers become privy to sensitive information. The client and the homeowner trust that information to be kept confidential. - Is the Appraiser Impartial?
Appraisers are prohibited from advocating for any party. This means that good appraisers value properties based on the most recent and accurate market data, not based on what either party "needs" the value to be. One example is a home purchase. Oftentimes the list price is higher than market value, but the potential buyer really likes the house. Buying is an emotional decision for all of us. Appraisers can let a buyer know if they are paying too much for a property. Most people make mortgage payments for 30 years and if a property is overvalued it is unbelievable how much more the homeowner will pay over time.
Good Appraisers Consider Appraising to be a Profession
Does the Appraiser consider what he or she does a job or a profession? The difference is profound. One person put it this way:
The difference between a job and a profession can be defined as: Job stands for "just over broke" thus requiring minimal education and one with little to no experience will suffice to get the job done. One can easily be replaced at a job.
Profession is a commitment to a higher level of education where one must attend and acquire skilled training. A profession requires critical thinking skills. The ability to master technique and a desire expand one's knowledge. Usually a profession has a distinct body of knowledge specific to that profession. A profession should be rewarding to self and those served by the profession. A profession should provide the professional with adequate means of compensation. Finally, a profession should be one that the individual continues to desire to return to day after day without dread.
Real Estate Appraisal is considered a profession and rightly so. While any profession can be tiresome at times, good appraisers love what they do and continually strive to be better. As in any profession; experience, dedication and consistency are indispensable.
In conclusion, when hiring an appraiser, make sure he or she is a dedicated, ethical, eager to learn professional. With these qualities, you can't go wrong!
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What have your experiences been with appraisers? Do you have anything to add to our list? Let us know in the comments!
