Appraiser or Realtor – Not my Choice

I was today years old when I learned I could NOT be a realtor and an appraiser in my jurisdiction of British Columbia, Canada.

I could be a lawyer and a judge. I could be a doctor and an accountant. I could be almost anything other than this combination.

“Of course, the options above are free from any possible conflicts of interest”. (Sarcasm indeed)

I have been working continuously for over 10 years to raise my level of expertise; however, based on some limitations placed on non-realtor MLS members, I am limited in the services available to me.

I have known this for some time but did not make an issue of it because it could imply that appraisers are somehow inferior to Realtors, not trustworthy and unable to provide some data and informational services to our clients, mainly the general public. Any of those could adversely affect the perception of my clients as to my, ethics, expertise and professional offerings.

I am now at a point where not speaking up about this is a disservice to the general public. The primary principle behind all of the above professional standards is to PROTECT THE PUBLIC TRUST.

I can possibly understand, that when the historical appraiser relied on an OPINION, ethically conflicted issues could be easily dismissed as opinions. This apparently led governing bodies to conclude that if an appraiser could choose whether they were acting as an appraiser or acting as a realtor and the questionable issues were merely opinions, the line may have been more challenging to define. At least, that is how it was explained to me unofficially. I am still waiting for the official written response from the relevant authorities.

In either case, I find it difficult to accept. Both Realtors and Appraisers, at least in my jurisdiction, require compliance with professional and ethical standards. The widely accepted appraisal associations require a significant time and monetary commitment, which effectively eliminates any tendency to act with impropriety. Offences beyond that would generally be criminal in nature, and no amount of professional guidance can eliminate criminal behaviour or negligence. The appraisal standards in place allow appraisers to be realtors but are very specific in how an appraiser can act.

The term opinion is still in the standards, but it is quickly being deprecated as opinions are being replaced with factual data and expectations. That is because our ability to interact with data over the past decade or so has completely revolutionized the potential of our profession. Unsupported opinions can no longer easily stand up in the face of observable facts.

The rules at play that limit the advancement of my expertise now make ZERO sense.

Upon inquiry, it appears to be due to some draconian rules that basically assume neither realtors nor appraisers can be trusted, although it is not clear who made that decision. It was clearly not the appraisal profession. So, the entire profession is hamstrung because an individual could act improperly.

I am aware that a number of my highly regarded peers in other jurisdictions are allowed to hold both credentials. Conversely, I understand some states also restrict appraisers in this manner. Meanwhile, I understand that in some jurisdictions, it is mandatory to be a realtor to gain access to any MLS data, etc.

Personally, this also restricts my ability to diversify my profession and apply my expertise and skills across profoundly related industries. This realization only came to me recently as many of my peers in other jurisdictions shared how they were diversifying into real estate sales during times of falling demand for their appraisal services.

I remain unpersuaded to give up my nearly 12 years of experience as an appraiser, and I remain confident my continued expansion into more demanding expert witness work and other related projects do not warrant giving up my appraisal designations.

I also know some of my peers in Ontario are dealing with issues around realtor licensing and access to MLS data. Who ultimately benefits from these policies?

Technology is changing and advancing, and we must be allowed to keep up with the expectations of those who rely on appraisal services. Other industry players have handicapped appraisers in the mortgage space for years, and this is just one more restriction.

These critical issues adversely affect the ability of the only genuinely independent and impartial experts in real estate valuation to perform their duties effectively, ultimately to the detriment of upholding the public trust for the overall real estate sector.

We are professionals. Our associations require us to comply with standards and ethics which hold us to specific written standards that are rigorously enforced.

You have the ability to make change. While this may or may not directly affect you immediately, consider that many, including members of the public, will potentially be adversely affected when they find themselves in need of well-supported, defendable, independent expert conclusions.

In my jurisdiction, I have reached out to BCREA, which indicates that the BCFSA is the governing body in this matter. Here is the BCFSA page I was directed to. It is not extremely clear. Here is a copy of my e-mail letter attempting to clarify. I was subsequently informed verbally that my interpretation was incorrect.

How does this affect you?

Do you have anything to add to this?

Comment below or contact me, as I will do my part first to ensure I fully understand the rules. Once I receive the written response from BCFSA, I will be in a better position to determine how to proceed.