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Some states license r.e. appraisers -- Colorado appears to have fairly minimal standards; Appraiser Licensing
The real danger is not illegality, I mean do you really fear being arrested or the same happening to the appraiser? Doubtful. Want you really want to be OK with is leaving your firm in a position where they say "HEY he tried to sneak something past us, we are going to get back at him..."
This is not like fretting over getting a mortgage, this could be either a non-issue (if there are no comps that are outside of your range) or a situation where you cherry picked and left somebody on the hook for some serious money. I mean worst case let's say you do order appraisals from all the folks on the list. Maybe two come back right where you are thinking. Two come back a bit low, maybe $690. The others are way down in the fives. You would be in a tough pickle. To go with any of these guys would be like taking BIG money for something that at least some professional appraisers definately think is far less valuable than you do. Personally I find that highly unlikely, BUT lets further suppose that somehow the company finds out about it. Then what?? The ask you to resign??? They whack you when there are 'cutbacks'?
What if you didn't even order an appraisal from any of these guys but instead called around to the mortgage brokers and loan officers that may be acquainted with them. Two guys are known locally as "low-ball Larry and Luis" while two others are known as "sky high Harvey & Harry". A friend of realtor knows an executive at your firm and when word gets back...
Obviously you have a nice house, probably a good paying job. Things have probably worked out pretty well up to know. Maybe it makes more sense to feel confidant in the homework you've done and accept a fair offer from the appraiser that you pick by tossing a dart.
But you pretty much taint the "independent" part of the appraisal process when cash trades hands from you to the appraisers...and the plan could backfire in a number of ways.
First, the appraisers might recuse themselves based on an actual or perceived conflict of interest...that could look bad if all six appraisers bowed out.
Second, it might be possible your company and/or the relocation company could withdraw the offer for relocation assistance based on your interference with the process, which appears designed to be fair and independent. They may not appreciate the "Kobiyashi Maru" approach to pregaming the outcome.
Third, it'd probably be pretty messy if the company appraisals came back different that the ones you paid for.
My conflict of interest warning light is flashing with this idea...it might work the way you want, but it doesn't pass the "how would I explain this to the company President" test.
In addition to your comments, I want to also add that it might violate the OP agreed to, and the Corporate buyout might be null and void. You might actually give them an out if they find out that your trying to manipulate the figures to your benefit.
We are considering taking a corporate guaranteed buyout offer as part of a relocation package.
The corporate buyout is based on the average of two independent appraisals or, more specifically, "relocation appraisals" or "forecast appraisals". (These types of appraisals provide a most probable selling price in 120 days.)
The corporate guaranteed buyout process is: A list of six appraisers is given to us from which we are to pick two and one alternate. The two appraisers independently appraise our house and the average of these two appraisals is the guaranteed buyout offer. (If the two appraisals are more than 5% different the alternate is considered and the two closest of the three are averaged for the offer.)
Our home is in an extremely custom neighborhood with a huge deviation of home size, price, and style. Our home would realistically list in the mid $700Ks. Other homes range from the mid $500K to around $1.3M. We think any two appraisals could be off by as much as 5%, or $35K to $40K. (If we lived in a non-custom neighborhood or track neighborhood we think the appraisals would be very close in value.)
We can hire any of the appraisers on the list to do the identical forecast appraisal for about $500.
Since we are going to be given the list of appraisers is there any harm in hiring all six of them independently ourselves for 6 X $500 = $3000 and getting each of their numbers in advance and then choosing the three (2+1) highest appraisals when it is time to pick the three?
Why are we considering this? We're spending $3000 to guarantee access to the two highest appraisals (assuming they appraise our house exactly the same way for the relocation as they do for us). It's a gamble but it might be worth it. If (unlikely in our opinion) all six appraisals come back really close like within a few thousand, then we didn't buy much. However, if they come back something like $715K, $720K, $725K, $730K, $740K, and $750K then we would pick Mr. $740K and Mr. $750K = $745K for the guaranteed offer.
Would the appraisers be obligated to inform the relocation company that they had been hired by us in advance? Would that void the process? Is there anything illegal about this? We've read the corporate relocation handbook and there is no mention that this is forbidden or illegal.
I would think that if the corporation found out that you manipulated the buyout offers on purpose, that they would be able to void any such agreement. You are after all talking about breaking the agreed upon deal with them by not fufilling your end of the agreement, what makes you think that they wont simply withdraw any such deal, leaving you $3,000 in the hole for all 6 appraisals?
I liked this post. I have to read it again but there is a lot of good information there. Thank you for writing it.
Regarding the quoted text above. Am I truly violating the trust? Or, am I simply playing by rules someone else wrote? I consider it a wise thing to do. It's perfectly legal. Unless there is something in the "rules" for appraiser preventing them from performing a"double appraisal" then there is nothing legally from preventing me from doing it.
I am playing by the rules.
Unless it's illegal, it's legal.
Is it unethical? What does unethical mean? Is it subject to interpretation?
Unfortunately, if someone with authority (employer) over me doesn't like my approach (because I outsmarted them, I worked the system), then I could get busted. I won't take a chance unless those in authority give me the green light.
Actually I agree with the other poster. You actually are not playing by the rules. The corporation agreed to provide you a list of 6 appraisers, you agreed to pick 2 of them, and by trying to manipulate the final figure by technically lying (well hiding information) you actually are not playing by the rules that you agreed to in advance.
If I was hiring you, I surely would queston your ethics and reconsider the job offer. If your willing to lie to me before you've even relocated for the sake of making a quick buck, what type of relationship would I expect from you if you had the chance to do it again 6 months from now.
You're not starting this new job off on the right foot, and perhaps you need to reconsider your move, after all, if your willing to break your deal with the company before you move, I'm wondering how long you'll be employed.
A The corporation agreed to provide you a list of 6 appraisers, you agreed to pick 2 of them, and by trying to manipulate the final figure by technically lying (well hiding information) you actually are not playing by the rules that you agreed to in advance.
What rules? I am playing by the rules. There is no rule (that I know of) against hiring appraisers in advance. How is it lying? How is it hiding information? How am I manipulating anything? How is this unethical? Why is doing research and getting information to make a wise decision the wrong thing to do? When you buy a car, do you shop around? Do you search for the best price? Isn't that what I am doing? I want the most money for my house. I'll get the most money if I identify the appraisers who think it is worth the most, rather than leave it to chance.
In fact, along with the list of appraisers, I was provided with their contact information and I was encouraged to interview them to so I could find the best appraiser for me, for my benefit. I was also encouraged to do some homework on things like recent sales so I could bring it to their attention, for my benefit.
But I will repeat, I do not intend in pursuing this path. It isn't about right or wrong. It's about power. If someone in control doesn't like something, I am gone. I'm not chancing it.
What rules? I am playing by the rules. There is no rule (that I know of) against hiring appraisers in advance. How is it lying? How is it hiding information? How am I manipulating anything? How is this unethical? Why is doing research and getting information to make a wise decision the wrong thing to do? When you buy a car, do you shop around? Do you search for the best price? Isn't that what I am doing? I want the most money for my house. I'll get the most money if I identify the appraisers who think it is worth the most, rather than leave it to chance.
In fact, along with the list of appraisers, I was provided with their contact information and I was encouraged to interview them to so I could find the best appraiser for me, for my benefit. I was also encouraged to do some homework on things like recent sales so I could bring it to their attention, for my benefit.
But I will repeat, I do not intend in pursuing this path. It isn't about right or wrong. It's about power. If someone in control doesn't like something, I am gone. I'm not chancing it.
Lets start out by quoting your first posting
The corporate guaranteed buyout process is: A list of six appraisers is given to us from which we are to pick two and one alternate.
So you agreed to pick TWO, and ONE alternate as part of your negotiating in your relocation package. If you do more then you, you just violated YOUR agreement to accept the odds with TWO.
What we did, was ask our listing agent which of the appraisers she recommended. She told us "x" usually comes in higher. So we went with him. Of course all this was at the top of the bubble. Things have changed.
The corporate guaranteed buyout process is: A list of six appraisers is given to us from which we are to pick two and one alternate.
So you agreed to pick TWO, and ONE alternate as part of your negotiating in your relocation package. If you do more then you, you just violated YOUR agreement to accept the odds with TWO.
What did I violate? What is the text of the violation? What odds? Where is it written I can't get appraisals in advance?
I understand what you are writing. I understand how it can be looked down upon. I understand how people could get upset. It might even be "wrong". But so far, there is nothing illegal about it.
However, there is nothing in writing (that I know of) from preventing me from doing it. If it is illegal, how come no one has brought it up?
But I will repeat, I do not intend in pursuing this path. It isn't about right or wrong. It's about power. If someone in control doesn't like something, I am gone. I'm not chancing it.
I understand your desire to NOT leave your employer with a feeling that you may have gotten more control than you should have. This is the safest thing to do.
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Smart course of action!
