When Your Competitor Is Hired To Appraise Your Listing...

By
Real Estate Agent with RE/MAX Compass, formerly RE/MAX WHP 0524642
https://activerain.com/droplet/4DtR

In Texas, Realtors can hold multiple licenses. Being an agent doesn't preclude you from also being an appraiser, home inspector and loan officer although there is no way you are permitted to write a contract, do the loan and appraise the house. You can, however, write the contract and do the loan. Personally, I would never hire an agent who wore multiple hats. You're either succesful at one of the duties, or your unsucessful at all of them.

The other day I spoke to an appraiser who needed entry instructions to my listing, which is routine. This time something was very different. I recognized his name. He and I had done a transaction together in the past. He's also a local Realtor.

What if the appraiser and I were friends? More importantly, what if he and I were fierce competitors? I think it's fair to say that most would be objective, professional and ethical, but should Realtors also be allowed to be appraisers? 

Posted by

 

 
Greg Nino
, Houston area Realtor®.
Helping residential buyers, sellers and tenants 7 days a week.
Available @ 832-298-8555 

RE/MAX Compass (Formerly RE/MAX WHP)

www.GiveMeMyHomesValue.com

www.EverydayHoustonHomes.Com

 

 

The information contained in this blog is believed to be reliable and while every effort is made to assure that the information is as accurate as possible, the author of this blog, and its comments disclaim any implied warranty or representation about it's accuracy, completeness or appropriateness for any particular purpose. All information is copywritten and the property of Greg Nino.  

 

 

 

 

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Rainmaker
3,197,767
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

I think not...I think the whole appraisal process is frankly a little whack...why have the offer price if it is objective?

May 23, 2015 11:33 PM #1
Rainmaker
2,825,776
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Wow- Interesting question, Greg.  I tend to lean on no because the potential for conflict of interest will always be there.  It's like the fox guarding the hen house. 

May 23, 2015 11:40 PM #2
Rainmaker
1,019,736
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

The thought that the venerable Dodd-Frank Act does not annul this action leads me to believe more legislation is necessary Greg. Wouldn't you agree? There can never ever be too many laws and regulation! 

May 24, 2015 12:41 AM #3
Rainer
216,215
Bob Publicover
Publicover Realty Group, inc - Stuart, FL
Thinking outside the box

Conflict, conflict, conflict!! I too agree the Appraiser should not be aware of the offering price, WHY?

May 24, 2015 01:32 AM #4
Rainmaker
1,143,971
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Yes I can see this having very bad potential outcome for the buyer if the unprofessional Realtor/Appraiser decided to tke out a grudge/payback on you to spoil the sale. How is this legal? Seems very foolish to me

May 24, 2015 02:29 AM #5
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Rainmaker
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Greg Nino

Houston, Texas
Providing Real Estate Advice 7 days a week!
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