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. 

7 Comments 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?

Leave a Reply

Your email address will not be published.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

This site uses Akismet to reduce spam. Learn how your comment data is processed.