Choosing an Expert Appraisal Witness

TODAY, DECISION MAKERS in valuation disputes want well-presented, unbiased, quality appraisal work in which they clearly can find credible and convincing analysis. Based upon this analysis, they will then decide upon an appropriate value.

In the past, decision makers tended to choose middle ground between two extreme value conclusions. It was then expedient to choose an appraiser willing to give the most extreme value in favor of your case, regardless of the soundness of that value.

Today, appraisers must also be capable of presenting their information in layperson's terms, so the judge or hearing board easily can follow their train of thought. An unbiased, well supported and presented appraisal will gain your side more cachet than an appraisal that will only advocate your point of view past the point of reason.

Therefore, when hiring an appraiser who will provide expert testimony, make sure that your appraiser has:

Experience appraising the property type in dispute
Experience appraising within the geographic area of the subject property
An appropriate level of appraisal education
An appraisal license to perform appraisals on the class of property in the state which the property resides
The highest level of membership or designation from a credible professional association
Experience as an expert witness (preferably before the board or court at which your case will be heard).

Once you hire your appraiser, make sure that your appraiser:

Is prepared
Uses the proper definition of value required by the jurisdiction
Uses the correct date of value
Advocates his/her opinion of value convincingly, but does not advocate or appear to advocate your side of the case.

The following characteristics should help you distinguish among the good, better, and best appraisers available:

Good: 1. State Certified General Appraiser; 2. Three Years Commercial Appraisal Experience; 3. Undergraduate Degree or Equivalent; 4. Candidate for a National Appraisal Designation; 5. Experience with the Market Area of the Property; 6. Experience with the Property Type Under Appraisal; 7. Meets Jurisdiction's Minimum Standards to Be Accepted as an Expert Witness

Better: 1. State Certified General Appraiser; 2. Five Years Commercial Appraisal Experience; 3. Relevant Undergraduate Degree in R.E./Economics/Business; 4. National Commercial Appraisal Designation; 5. Market Area of the Subject Property is the Major Focus of Practice; 6. Property Type Under Appraisal is the Major Focus of the Practice; 7. Prior Qualifications and Experience as an Expert Appraisal Witness

Best: 1. State Certified General Appraiser; 2. Seven Years Commercial Appraisal Experience; 3. Relevant Graduate-Level Coursework or Degree; 4. National Commercial Appraisal Designation; 5. Exclusive Practice in the Market Area of the Subject Property; 6. Exclusive Practice of the Property Type Under Appraisal; 7. Prior Acceptance and Experience as an Expert Witness before the Court or Board that will Hear the Case

Investigate before you invest. The time spent will reduce the possibility of future disappointment.

Steve's Signature
Stephen Traub, ASA

For a free printed copy of Choosing an Expert Appraisal Witness: E-mail to: straub@shore.net or contact Stephen Traub, ASA, at Property Valuation Advisors, 63 Hill St., Newburyport, MA 01950, or call 978-462-4347.

Stephen Traub, ASA, is chief commercial appraiser for Property Valuation Advisors, Newburyport, MA. He is a certified general appraiser in NH, ME, and MA and has qualified as an expert witness in various venues in NH, ME, MA, and CT.