The Benefits of Using An Appraisal Management Company – What All Lawyers Should Know.

At first glance, today’s blog topic might appear to be a major plug for my company. Okay, maybe at second glance, too. Fine. I think my company is exceptional, and I brag about it whenever I get the chance. That said, what follows comes from the keyboard of a person who not only believes deeply in what she does, but also from someone who spent many years practicing law. Much of my social and professional circle is made up of attorneys, and I speak from both first- and second-hand experience when I say that AMCs can serve as a major boon to any attorney whose work involves real estate valuation.

Many lawyers will, at some point in their practice, require the services of a real estate appraiser. A great number of lawyers, including those in the fields of real estate and real estate tax appeal, estates and trusts, bankruptcy, divorce, eminent domain and family law will use appraisers on a regular basis. It is these lawyers for whom an AMC can save significant time, money and headaches. Historically, many lawyers will either take it upon themselves to research and engage an appraiser, or leave the process up to their legal assistant or even their client. Below, I’ve laid out some reasons why attorneys might want to think twice before using this approach, and what to do instead.

Reason #1: Finding the Best Appraiser for the Job is Not a Simple Process.

You’re billing your client on an hourly basis, and you need to find an appraiser in Beaver, Oklahoma. Yes, Beaver, population 1,500, best known for being the cow chip throwing capital of the world. (I swear. Look it up if you don’t believe me.) You’re not about to spend four hours researching the reputations of appraisers in Oklahoma’s panhandle, so what do you do?

Option One: Plug “Beaver” and “appraiser” into the search engine and give the first guy in the results list a call. Right? Wrong. Don’t do it. While resorting to Google is by far the simplest solution, and you might think you’re saving your client billing time by taking this approach, it’s important to recognize that, just as a high-quality appraisal can impact your case, so too can a shoddy one. An inexperienced appraiser is akin to a summer associate – you’re not going to let a second year law student cross-examine an expert witness, so why let a green appraiser do your appraisal report? It’s essential to have an appraiser on the job who knows what he or she is doing.

Option Two: Call your client and tell him to get an appraisal done. Right? Wrong. Don’t do it. See Option One. Recognize that your client may not understand the impact an appraisal will likely have on his or her case. You’re not going to leave your legal research to your client, right? Using a poorly crafted appraisal report can be just as harmful to your position as citing overturned case law.

Option Three: Hire an AMC. Right? Jackpot! One of the functions of an Appraisal Management Company is to keep tight tabs on an appraiser’s training, work product quality, history of complaints against him, and areas of expertise. For example, US Appraisal Group has a detailed system that keeps track of each appraiser on our panel, and we never use appraisers whose work doesn’t stand up under scrutiny. Once you’ve engaged our company, you’re guaranteed to have the best appraiser on your job…even in Beaver.

Reason #2: An AMC Will Make Sure Your Report Gets Done Properly and On Time

A good AMC will stringently regulate the appraisal report process. At USAG, both our on-line system and our executives constantly monitor the paths of each report ordered by our clients. We know when an appraiser is doing what, at all times, and we make sure that things are moving along at the pace requested by our clients. (As a side note, lawyers should only work with an AMC that understands the schedules and deadlines imposed on attorneys. Ideally, the AMC should have a lawyer on staff as a point contact for your assignments.)

Reason #3: Transparency of Process

Just as our executives and staff know where an appraisal report is at each step in the process, so too do our clients. USAG’s on-line system allows you to log in and monitor each assignment that you’ve requested. This way, you are never in the dark when your client asks for an update.

Reason #4: By Using an AMC, You’re Saving Yourself and Your Client Money

Generally, AMCs make money not by increasing clients’ payments, but by reducing the individual amounts paid to appraisers on their panel. AMCs, including USAG, are able to engage and keep top-level appraisers by ensuring that appraisal assignments are steady and payments are timely, fair, and guaranteed. In other words, using an AMC does not mean you spend more money for an appraisal report. It does mean a streamlined process, vetted appraisers, high quality reports, and reduced billing time. There is never extra money spent on re-dos or second opinions for badly made reports, and your client’s bill will never say “4.25 hours: Internet research re: Beaver appraisers.” Definitely a plus.

Reason #5: Having A One-Stop Shop: AMCs Provide Other Services Useful to Attorneys

AMCs like USAG are not just about streamlining appraisal reports. In addition to commercial and residential reports, we are able to provide our attorney clients with expert witness testimony, third party appraisal report review, due diligence services, and consultation and advisory services.

So the next time you’re in need of valuation services, think twice before going for the search engine bar or telling your client to get an appraisal. Instead, give us a call at 888-580-USAG, and find out for yourself the difference the right Appraisal Management Company can make for your practice.

____________________________________________
Jessica A. Edgerton, Esq.
After graduating cum laude from Indiana University Maurer School of Law in 2004, Jessica practiced as a litigation attorney in Boston and Chicago. She is now the Business Development Manager for US Appraisal Group’s Attorney Services Division, and lives in downtown Chicago.
Email: jedgerton@usappraisalgroup.com
Mobile: 312-342-0880