Appraiser Ethics

Appraising is a profession, and appraisers are professionals. So, what does it mean to be a professional? Does it mean you wear a coat and tie? Maybe... maybe not. Primarily, what it means is that, as a professional, we are held to a high standard. One set of standards to which we are held is a code of ethics. Here, at Hester Appraisals, we take these ethical responsibilities very seriously.

One of the ethical standards to which we are held is confidentiality. We are bound by the Universal Standards of Professional Appraisal Practice (USPAP) that our work must remain confidential. In short, among other things, when we appraise a piece of real estate, we must not divulge anything about that assignment to anyone other than our client without that client's express written permission.

So, what are some of the other ethical considerations for appraisers?

• We are obligated to communicate with our clients and others in an honest manner.
• We are obligated to numerical accuracy based on the assignment parameters.
• We are obligated to maintain certain levels of competency and education.
• We are obligated to NOT perform appraisals outside of our competency without making proper arrangements to develop the needed competency or work with an appraiser with the necessary qualifications.

Our primary responsibilites listed above are to our clients. More often than not, an appraiser's client is a lender. However, a client could be a homeowner, an attorney, the local court system, or others. An appraiser may also have fiduciary obligations to third parties, but thost third parties are normally spelled out in the appraisal assignment itself. Those responsibilities are typically limited and should be made clear to the appraiser at the time of the assignment.

Besides ethical guidelines related to appraisers' clients, there are also other ethical considerations that are strictly for the appraiser. For example, appraisers must keep their work files for a minimum of five years. Also, an appraiser is responsible to be aware of the appraisal laws of his state.

We only perform appraisals to the highest ethical standards possible. 

• We will not accept appraisal assignments based on contingency fees. That is, we don't agree to do an appraisal report and get paid only if the loan closes. 
• We will not accpet appraisal 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.

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.

When doing business with Hester Appraisals, you can be assured of 100 percent ethical, professional service.