Things to Remember When You Wear an Appraiser Cap and an Agent Cap

It is possible to be simultaneously licensed and practicing as a real estate appraiser while also being a licensed and practicing real estate agent. For those of you who are working in both professions or for those who are looking at the possibility, there are a couple potential conflicts of interest that you should be wary of. 

First of all, there needs to be a clear line between when you are acting as an appraiser and when you are acting as an agent. They cannot overlap at all. Obviously, there would be a clear conflict of interest if you were ever to appraise a home that was your listing or that you had any type of personal interest in. Make sure you are clear on when you are wearing your agent hat and when you are wearing your appraiser hat. 

There could also be a potential conflict of interest if you were to appraise a listing by an agent in your office. You may want to steer clear from this situation entirely which can be more easily accomplished by working for a smaller agency. However, if you decide to appraise a property that has been listed by a fellow agent in your office, make sure you disclose everything. Make sure you disclose to your client, the other agent, and also officially in your report. Make sure you have the green light from both parties before you proceed. You can never be too careful with these things. 

While there is not always one right answer when it comes to some grey areas that may arise as you work in both professions. It is important to always trust your gut and disclose any relationships or potential conflicts of interest. How a situation appears to others is also important because even though you may not feel something is immoral, a judge may see it differently. No amount of money is worth doing something that is questionable and could possibly cause you to lose your either of your licenses. 

14 thoughts on “Things to Remember When You Wear an Appraiser Cap and an Agent Cap”

  1. I have been an appraiser for going on 37 years – I have always also thought that, frankly, it is a conflict of interest for an appraiser to own real estate in the area in which they appraise. How can it not be?

  2. I do not think that ownership of real estate would result in a conflict as I have been appraising for over 20 years and buying and selling and holding real estate for over 20 years as an investor. The overwhelming majority of real estate appraisers own there own home so I do not think it would pass a logical reasoning test that it is conflict to own real estate and all the appraisers I know would like to appraise as close to home as possible. So, I would take the exact opposite opinion and say I would be wary of nay real estate appraiser that did not own real estate. I think the process of buying a house, buying many houses, buying investment property just makes you a more experienced well rounded real estate professional.

  3. Why would it be a conflict of interest to appraise a property in a neighborhood you happen to own a property in? Have you not appraised a property in the same city in which you live?

  4. I have both licenses. 99% RE appraising. In Marin County, CA you can not belong to MLS if you have a RE agent lic. hanging in a RE office, using it part-time. Which means you can not use the MLS if you are appraising. I have asked the MLS people why do I have to give up MLS if I have my RE lic. hanging at a RE company part-time? I use MLS for appraising every day all day long. They told me because we do not know what to do with people like you, having 2 licenses (asked in 2018) 41 years I have had my RE lic. and appraising since 1985 in good standing. I was hoping to pick up a little $ bird-dogging for my favorite RE agent to supplement my Social Security along with doing a couple of appraisals until they take my car away.

  5. I too have both licenses and I use my appraisal skills when I go to list a property and come up with a sales price. I even use my appraisal software and put comps into the grid to get a range of value and see what property is most like the subject and therefore, the best comparable(s) to use in my market analysis. As long as I’m careful to let my client (the seller or the buyer) know that I’m working not as an appraiser, but as a realtor in their best interest, I would think that I am clearly disclosing my position, acting in good faith to uphold my fiduciary responsibility and using all my skills to do the best for my client. Many people think I am better qualified as a realtor because of my appraisal experience.
    So I am concerned when you discuss “overlap” between the two professions and that, “Obviously, there would be a clear conflict of interest if you were ever to appraise a home that was your listing or that you had any type of personal interest in.” So if I use my appraisal software & skills to do a CMA for real estate would this be a problem? Perhaps it’s just how you present the data to your client? Please advise. Thank you.

  6. Pingback: Things to Remember When You Wear an Appraiser Cap and an Agent Cap - Appraisal Buzz

  7. So is it a conflict of interest to act as a listing agent for a property one had appraised as a certified appraiser in the past if you disclose the prior appraisal in the listing agreement?

  8. California just passed a law stating licensed appraisers can’t also do home inspections, but yet with every attic crawl, crawlspace adventure, running of appliances and heating and air condition checks, does the state even know what an appraiser is required to do (FHA / VA / AMC MOB’s)? When there is no required state license to become a home inspector, and on a national average it only takes 70 hours to become a realtor, their barking up the wrong tree.

    Seek the truth, and keep pounding those round pegs into square holes.

  9. How can I trust an appraiser that also flips houses? How do I know if they didn’t list unneeded repairs on a property that I want to purchase so I would abandon my offer, only to open the door so they could buy the property and flip it instead?

  10. Yvonne, I agree. In my case my home was appraised by a owning member of a local real-estate agency/properly owners. The appraised value came back shocking low (based on comparables). How am I to know that he did undervalue my home in order to swoop in and buy it at lower cost in order to flip the home? Seems like a huge conflict of interest. Advice please.
    Also please advice: is it standard practice to lower the value of a home when the seller of a not- arms-length-sale gifts equity towards buyer down-payment.

  11. Jeffrey Nienaber

    Can I disclose my State Certified General work experience under Agent Qualifications (resume) while adding this statement as an addendum to be signed by the seller or buyer (depending on transaction type). I don’t do ANY residential appraisal work in Florida except for a bonding appraisal to a private client every two years. My disclosure statement (to be signed by all) would look something like this:

    I, (appraiser name), am making aware to the client (s) _________ and ______ that I am not working as a Florida Certified General Appraiser, but as a licensed realtor acting in their best interest. I am clearly disclosing my position only as real estate agent in this transaction to the client (s), acting in good faith to uphold my fiduciary responsibility as a Real Estate Salesperson, using all my real estate skills and experience to do the best for my client.

  12. Marcus Ortelee

    In CA, can a person hired as an appraiser for a property. Then become immediately the agent for the property they just appraised.?

    What if then the Appraiser/ Agent lists the property for the seller without giving 120 day written notice to the tenants of the intent to sell in CA.

    I found out at 10:30 AM on April 1, 2022 that the property was going up for sale at noon. I wrote my landlord of 5.5 years after he had this appraiser/ now agent take photos of my apartment and yard, and the landlords apartment and yard; but not of the other two apartments on the property. 10 days before April 1st.

    The tenant in apartment 4 learned the next day from a friend. The tenant in apt 3 [84 yrs of age] was not informed until receiving a notice of entry and and sale on 4/12/22.

Leave a Comment

Your email address will not be published. Required fields are marked *

Related Posts

Scroll to Top

Existing Members

If you have been a member prior to Jan. 1st 2024

Or, click on the right side to sign up as a new member (with a free month and added bonus material) and your existing membership will be automatically moved over and any extra payments credited. 

Or, click on the link below to sign up as a new member (with a free month and added bonus material) and your existing membership will be automatically moved over and any extra payments credited. 

New Members

If you became a member after Jan. 1st 2024 or are an existing member and want to move to our new system. 

Try the All-Star Team No-Risk for 30 Days Free!