Appraiser Ethics
Appraisal is a profession, and
appraisers are professionals. In our field as with any
profession we are bound by ethical considerations.
An appraiser's primary responsibility is to his or her
client. Normally, in residential practice, the
appraiser's client is the lender ordering the appraisal to
decide whether to make the mortgage loan. Appraisers
have certain duties of confidentiality to their clients --
as a homeowner, if you want a copy of an appraisal report,
you normally have to request it through your lender --
obligations of numerical accuracy depending on the
assignment parameters, an obligation to attain and maintain
a certain level of competency and education, and must
generally conduct him or herself as a professional.
Here, we take
these
ethical responsibilities very seriously.
Appraisers may also have fiduciary obligations to third
parties, such as homeowners, both buyers and sellers, or
others. Those third parties normally are spelled out
in the appraisal assignment itself. An appraiser's
fiduciary duty is limited to those third parties who the
appraiser knows, based on the scope of work or other
written parameters of the assignment.
There are ethical rules that
have nothing to do with clients and others.
Appraisers must keep their work files for a minimum of five
years.
We only perform to the highest ethical standards
possible. We don't do assignments on contingency
fees. That is, we don't agree to do an appraisal
report and get paid only if the loan closes. We don't
do assignments on percentage fees. That is probably
the appraisal profession’s biggest no-no, because it
would tend to make appraisers inflate the value of homes or
properties to increase their paycheck. We don't do
that. Other unethical practices may be defined by
state law or professional societies to which an appraiser
belongs.
The Uniform Standards of Professional Appraisal Practice
(USPAP) also defines as unethical the acceptance of an
assignment that is contingent on "the reporting of a
pre-determined result (e.g., opinion of value)," "a
direction in assignment results that favors the cause of
the client," "the amount of a value opinion," and other
things. This means you can be assured we are working
to objectively determine the home or property value.
You can be assured of 100 percent ethical, professional
service.