Engagement Letters

Posted By: mdog76

Engagement Letters - 04/03/13 03:50 PM

When sending an engagement letter to an appraiser for ORE purposes, is it ok to remind them in the letter of what the value was last year and send economic data showing that values have increased or held steady? Or would this be considered steering the appraiser or influencing the appraiser?

Some appraisers in our area are just assuming that they have to lower the value due to the economy.

Thank you.
Posted By: rlcarey

Re: Engagement Letters - 04/03/13 04:01 PM

An appraisal is suppose to be an independent assessment of the value of the property based on comparable sales or on an income or cost approach. It has nothing to do with the "economy" or the amount the property was valued in the previous year. If you are using appraisers that can't find their own comps - you need to get some new appraisers.