The real estate profession has prolonged and offers one of the widest career selections in the business world in the present day. Helping people buy and sell homes, office buildings, industrial property and corporation farmland, property management, land development, mortgage banking, urban planning, real estate counseling, appraisal and research are all aspects of a career in real estate. Among the various aspects of real estate appraisal, one of the more interesting and challenging is appraisal arbitration. In appraisal arbitration, parties to a real estate contract settle their differences by relying on two or more knowledgeable appraisers.
Most real estate transactions, including leases and sales, are based on the concept of market value, and most participants feel that if they have reached a "market-based" result, the deal is fair. Indeed, until recently the term "market" was often prefaced with the term "fair." More modern constructions simply use the word "market," perhaps indicating either that the word "fair" is redundant, or that fairness is not a consideration in market pricing.
On the other hand, a market-based transaction is fundamentally fair to both parties. Real estate appraisers are trained and believe that their analyses replicate the likely actions of the marketplace. Equally important, real estate appraisal has evolved as a profession that claims impartiality regardless of client or compensation. (While the fine points of this can be debated, the contrast is, for example, profound when appraisers are compared with attorneys, who have a professional obligation to be an advocate for their client.) In light of these circumstances, real estate appraisers are the professionals of choice in real estate value arbitrations. (Frederick M. Babcock)
An appraiser may be required to hold a detailed professional description. This is mostly an attempt to introduce some broad level of appraisal competence to the arbitration participants. A typical.......
