How can legitimate appraisers avoid becoming involved in real estate scams?
1. Appraise your clients as carefully as you appraise properties. Avoid doing business with people who have questionable reputations. 2. Be objective and base your estimates of value on genuine data. Never arrive at the value your client requests unless data supports that conclusion. Be wary of a client who provides you with supporting figures but discourages you from verifying that information. 3. Be alert to the possibility of “created” or “flipped” markets. If a property seems to be overpriced for its condition and neighborhood, don`t simply assume that all information provided to you is legitimate. Some basic research might disclose the fact that the property may be involved in a scam. For example, in researching comparables, look to see if the same party was the seller in several of the transactions. Check to see how many times the property was transferred in the last year or so and if the prior sales were for an amount significantly lower than the recent sale. In today`s booming
