Appraiser and Client Trust Factor
We are professionals and should be treated with the same respect and trust that other professionals are afforded.
Relationships are important. The bonds we form with a spouse, children, friends, or business associates can be powerful and a strength. When trust is broken, however, deep challenges emerge. Divorce, separation, or permanent dissolution can be the end result when someone’s integrity is on the line. The trust factor between an appraiser and the client is essential if professionalism and continued business is to be amicable.
Last month, I wrote an article about taking drive-by and comp pictures. The comment boards lit up. Most appraisers agreed with me (for a change), but many did not. I read every comment and have spent some time thinking about the insights and opinions of so many appraisers. The question that keeps haunting me is, “why?” Why are pictures required in the first place? I think there are two, equal answers. One has to do with clarity, and the other has to do with trust.
USPAP requires that we are not misleading in our appraisal reporting. As they say, ‘a picture is worth a thousand words.’ Pictures can do much to assist us as appraisers in being more clear about what we are trying to say. To say that the subject is similar in quality to comparable 3 is one thing. To show a picture of comparable 3 juxtaposed to the photo of the subject is quite another.
Unfortunately for most of our clients, the photo requirements are not so much about clarity, however. Rather, they are becoming more and more about trust. It is no longer enough to say the water and electricity were working at the time of the inspection. AMCs are often requiring photos of the light burning and the water running. It is not enough to report that you inspected the correct home. You are increasingly being told to take a photo of the address numbers. You cannot just state in the report that you drove past all of the comparables. You must take a photo of each one to prove you were really there.
In many ways, I am afraid our clients (and society as a whole) has forgotten the importance of integrity. To not be trusted is a degrading feeling. Can you imagine a friend sharing stories of their recent trip to France and you interrupting them to request that they show you pictures of the Eifel tower to prove that they were actually in Paris? Disrespectful and degrading.
I will concede that some appraisers are not worthy of the respect the rest of us demand. They have cut corners and been less than honest about certain things. Those appraisers should be cut off. Their dishonesty should not spoil things for the rest of us. If an appraiser says the electricity is on, it is on. If an appraiser certifies that they have driven to each comparable, they have. We are professionals and should be treated with the same respect and trust that other professionals are afforded.
- Be Nice or Be Quiet - July 2, 2021
- Being Liberal with Values Hurts Homeowners - June 28, 2021
- Why Are Appraisers Banned? - April 15, 2021
Outstanding article Dustin! Right on point.
Our clients have forgotten; and we have allowed them to forget that we are skilled professionals.
Frankly, I think ‘trust’ starts at how the fee is collected (setting aside for the moment how much it is and how it is split up).
In days of old, banks and S&Ls liked to collect the fees because they felt it gave them added control over the deal. I never agreed to such arrangements.
I need to set aside a specific block of time to do an appraisal. This is a period of time in which I do not take or cannot accept other work that could conflict time wise.
The ONLY way I can be sure that my time will be fully and properly compensated is to collect the fee myself. UP FRONT! I have always treated cancellation / refund requests fairly based on how much actual time I have invested.
If the client cannot ‘trust’ me to collect my fee and do the work properly and as agreed with respect to scope; then I simply will NOT trust them to pay me fairly OR to pay me in a timely manner upon completion.
It is a very rare case in which I accept deferred payment beyond the inspection date. Few clients have earned that trust.