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ARE YOU ACTING AS A “ROBOT” OR A “MENSA” APPRAISER?

Southeast Appraisal
Southeast Appraisal 3350 Riverwood Parkway Suite 1900-19077 Atlanta, Georgia 30339 Phone: (770) 883-6987 Fax: (866) 839-7887
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First some definitions for the purpose of this tome. “Robot” Appraiser: one who appraises certain assets to a specific value concept, as told to do so by others, without knowledge of the purpose of the appraisal. “Mensa” Appraiser: one who appraises certain assets with knowledge of the appropriate value concepts and techniques as well as a thorough understanding of the appraisal application. A robot appraiser may be working in an auction / liquidation related firm well known for providing credible market based value information to asset based lenders. This is a professional function since the appraiser knows the type of services always provided by their employer. Therefore, it is unfair and inappropriate to characterize this appraiser as a “robot”. However, if this appraiser goes to work for another firm, or is asked by another appraiser, to do a market based appraisal without understanding the applicability of the appraisal concept to the appraisal use then of the word “robot” seems appropriate. Whose fault is this? It is the appraisers fault for not asking relevant questions about the appraisal situation. And yes, it is the employers / engagers error for not taking the time to explain and/or thoroughly train the appraiser regarding the appraisal purpose and applicable value concept. So what, who cares, one may say! Well it is a matter of personal professional pride to know what one is doing and that it is appropriate. From a liabiliity protective perspective, if something goes wrong, or appears to be such, the filed criminal or civil lawsuit may well touch all involved, including the robot appraiser. Or simply, one may lose their job, reputation, or referral sources. Not good!! The mensa appraiser when asked to be involved in a project is quite inquisitive to assure that the value concept and level of service is appropriate for the appraisal application. But often the mensa appraiser may not have the knowledge or education to understand the appraisal application, say a complex multi-disciplined Fair Value SFAS 144 impairment analysis. Such is not a time to be professionally lazy. The appraiser should still probe and understand to their level of professional comfort. And the employer / engager has the responsibility to explain forthrightly the appraisal purpose to a degree that the appraiser is assured they are “doing the right thing”. So sometimes it is okay to be a robot appraiser, but not often. Rather, become a mensa appraiser, it is more interesting, professionally satisfying, and safer.
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ARE YOU ACTING AS A “ROBOT” OR A

“MENSA” APPRAISER?

Southeast Appraisal
First some definitions for the purpose of this tome. “Robot” Appraiser: one who appraises certain assets to a specific value concept, as told to do so by others, without knowledge of the purpose of the appraisal. “Mensa” Appraiser: one who appraises certain assets with knowledge of the appropriate value concepts and techniques as well as a thorough understanding of the appraisal application. A robot appraiser may be working in an auction / liquidation related firm well known for providing credible market based value information to asset based lenders. This is a professional function since the appraiser knows the type of services always provided by their employer. Therefore, it is unfair and inappropriate to characterize this appraiser as a “robot”. However, if this appraiser goes to work for another firm, or is asked by another appraiser, to do a market based appraisal without understanding the applicability of the appraisal concept to the appraisal use then of the word “robot” seems appropriate. Whose fault is this? It is the appraisers fault for not asking relevant questions about the appraisal situation. And yes, it is the employers / engagers error for not taking the time to explain and/or thoroughly train the appraiser regarding the appraisal purpose and applicable value concept.