My business partner John Cicero, of Miller Cicero, our commercial appraisal firm ran across a pretty interesting book released by McGraw-Hill last year, a well respected publisher.

Here’s an excerpt from the book: The Complete Guide to Financing Real Estate Developments (Hardcover) by Ira Nachem (2007, McGraw-Hill, New York), List price $79.96.

Since appraisers want to continue to receive assignments, they generally have a desire to satisfy you, their client. You sometimes can play on that desire and get the appraiser to produce a report with values a bit higher (or lower) than he otherwise would report….If you want to make sure that the appraiser is not undervaluing the property, you should tactfully indicate your concern up front…

In other words, its important to pressure the appraiser – in fact, it is part of a strategy to be a successful developer. Of course with the changing credit market landscape, I would think the lessons learned from this book are now limited. Still, it is quite shocking to me how cavalier this quote is and how commonplace it probably was.

For more details, take a look at John’s post over at my other blog Soapbox.


3 Responses to “Even Storied Book Publishers Didn’t See The Pressure”

  1. Caleb Mardini says:

    Awesome find! Thanks for the post.

  2. Todd Huttunen says:

    Unfortunately, the reaction of all too many appraisers (and their clients) to the comment you cite would mirror the sentiment of the Claude Rains character from Casablanca, Captain Louis Renault, when he declares “I’m shocked, shocked to find that gambling is going on in here”.

  3. Edd Gillespie says:

    High volume loan producers have been giving this advice and following it for years. What is telling is that McGraw Hill is just now getting around to publishing it.