Consult an attorney Your attorney will coordinate with the appraiser to determine the proper course of action depending upon the elements of your specific case.

Note: I hold a California Certified Appraiser License and a California Broker License only; I am not an attorney, nor do I claim expert knowledge of legal matters. The information on this website is of a generic nature only and is not intended as legal advice. The term, “litigant” is used here generically to reference a party to a legal case such as a divorce, or a party who may be involved in a legal case against a property owner. The word, “client” is defined by the Uniform Standards of Professional Appraisal Practice (USPAP) as, “the party or parties who engage an appraiser (by employment or contract) in a specific assignment. The client may be a litigant or an attorney.

 

Take time to review your options Consider your options before retaining an appraiser. Every case is different and there are many different approaches to resolving valuation issues. A Restricted Use Appraisal is one option; a Summary Appraisal is another. Some cases may require a Complete or Narrative Appraisal. The appraiser may also be asked to conduct a forensic review of the opposing appraisal, give a deposition, or testify in a court. One or more of these services may be combined; others may be omitted altogether. Call me to discuss the different options available.

 

 

If an opinion of value can be purchased, it is worthless. Too often, one or more parties will seek out an appraiser who is willing to provide an opinion of value that is artificially high or low. Providing such a service to a client is considered unethical by the Uniform Standards of Professional Appraisal Practice (USPAP) and is actually a disservice to the client. When the report is examined by a competent review appraiser retained by the opposing party, an appraisal that is based on inappropriate data or otherwise biased is easily exposed as such. A biased appraisal may actually increase costs and prolong an already difficult situation. Valuable resources may be needed to defend a biased appraisal. While one side is engaged in defending this type of appraisal, the opposing side may take the opportunity to gain the initiative in negotiations. Resources are limited and need to be applied where they will achieve maximum results.

 

A certified appraisal can reduce the costs. If the attorney advises that it is best to negotiate a settlement out of court, all parties will eventually need to agree on a price. One or more credible appraisals may help the parties reach an agreement that all consider fair and equitable. However, the likelihood of an agreement decreases as the difference between the appraisals increases (as in the case where one appraisal is artificially high and the other is artificially low). If the difference between the appraisals is excessive, the parties may need to order forensic reviews of the appraisals or even order one or more additional appraisals. If the parties are still unable to reach an agreement, it may be necessary to depose one or all of the appraisers in preparation for a trial. If negotiations fail, the appraisers may need to testify in court. Prolonging the negotiation drains resources and extends an already emotional and costly process. Maximum results are achieved by retaining a Certified Appraiser to provide credible evidence of Fair Market Value.

 

Failing to plan is a plan for failure Without a strategy, litigants may incur unnecessary expenses for updates to prematurely ordered appraisals. The appraiser may need to conduct repetitive research and analysis or make additional trips into the field. Additional appraisal assignments may be required to supplement information that could have been included in earlier assignments. Not only is this costly, the attorney is essentially ‘spoon-fed’ valuable information they urgently need to win the case. If the attorney cannot obtain accurate, complete, and timely information, it may affect their ability to take full initiative in the negotiations.

 

Plan, Execute, and Win Developing a winning strategy before starting any appraisal work will help avoid the time and expense of unnecessary reports and supplemental updates. The appraisal industry has changed significantly over the past few years. Some of these changes have made it easier to adapt appraisal services to the needs of the legal community. When proper appraisal techniques are incorporated into the strategy, some appraisal elements can be combined; repetitious research and analysis can be avoided; the appraiser will make minimal trips into the field. With complete, accurate, and timely information, the attorney can take the initiative in negotiations while opposing counsel is engaged in defending their appraisal. Costs are reduced, and a fair settlement is achieved in a timely manner.

Call me for a free consultation.  Together, we can develop a winning strategy.