Appraisal Independence
Last updated
An appraisal is only useful if the people who read it can trust that nobody decided the answer in advance. This notice sets out how Mr. Cali Appraisals keeps that independence. Every appraisal is prepared and signed by Gordon Hall, California Certified Residential Real Estate Appraiser, BREA No. AR003877, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP), the professional standards that govern how an appraisal is developed and reported.
How assignments are accepted
- Assignments are accepted without any predetermined value, condition or direction as to outcome. No assignment is taken on the understanding that the value will reach, or stay under, any figure.
- The fee is set by the scope of the assignment and quoted before work begins. It is never contingent on the value reported, on reaching a predetermined result, or on the occurrence of a later event such as a sale closing, a loan funding or a case settling.
- Mr. Cali Appraisals takes no commission on the sale of any property it appraises and has no interest in the outcome of the transaction or the matter the report supports.
- Mr. Cali Appraisals shares the Mr. Cali name with Mr. Cali Offers, a cash-offer brand, and is separate from it. Gordon Hall's opinion of value is independent of any sale, listing or offer outcome.
- Any prior service involving the property, or any interest in it, is disclosed before an assignment is accepted, as USPAP requires.
Lender assignments
When an appraisal is ordered in connection with a mortgage loan, it also follows the appraiser independence requirements that apply to lending. These include the valuation independence rules under the federal Truth in Lending Act, and California law, which prohibits anyone with an interest in a transaction from improperly influencing an appraiser's opinion of value. Under those rules, no lender, loan officer, broker, agent or borrower may pressure, coerce or reward an appraiser to reach a particular value.
What the appraiser will not do
- Discuss or estimate a value before the research and analysis are done.
- Accept a target value, a contract price to support, or a figure to stay above or below as a condition of taking the assignment.
- Change a completed report because someone asks for a different value. A report is revised only when new, relevant information comes to light, such as a factual error, an overlooked comparable sale, or a correction to the property's description, and any revision is explained.
- Leave out, or add, data in order to move the value in either direction.
Questions about the comparable sales, the adjustments or the reasoning are always welcome after delivery. If you believe the report missed relevant data, send the specific sales or facts and they will be considered on their merits. A request for reconsideration is reviewed; a request for a number is not.
Nondiscrimination
Value opinions are developed without regard to race, color, religion, national origin, sex, disability, familial status or any other characteristic protected by law, of the owners, the occupants or the neighborhood. The Appraisal Independence and Nondiscrimination page explains the fair housing protections that apply and where to report a concern.
How to raise a concern
If you believe anyone has tried to influence an appraisal, or that this practice has not met the standards on this page, call (909) 324-6122. You can also contact the California Bureau of Real Estate Appraisers, which licenses appraisers in California, at brea.ca.gov.