Employing the right Auctioneer and Appraiser

Employing the right auctioneers and appraisers can be a difficult task without the right questions.  What would help you with the task of hiring them is the ability to ask them the right questions, those you already know the answers too.   Asking the right questions should allow you to narrow your search down considerably while helping establish their knowledge and professionalism in the answers they provide.  These are the same sorts of questions that professional Human Resources managers use when interviewing job applicants and what you are doing is the same thing.  Like you, HR managers are looking for specific answers to their questions or a range of answers that will eliminate applicants quickly.  Like these HR professionals, knowing the answers to the questions you need to ask will help empower you to make the right decision and make your task much easier. 

Here is an example of an important Question based upon a common scenario where the client needs both an appraisal and auction to help settle an estate.    Question to the auctioneer/appraiser:  Can you do both the appraisal and auction or do you recommend having someone else do one or the other? 

Answer:  An ethical, honest and professional auctioneer/appraiser will quickly identify for you that there exists the real possibility of a conflict of interest.   These professionals will be able to explain the pressures that are applied to many auctioneers and appraisers and how some less ethical auctioneers and appraisers take advantage of the situation.  Normally a professional will recommend that the client use a truly independent party for the appraisal so as not to taint both the process and the values in the appraisal report. 

Is it possible for an auctioneer and appraiser to do both without creating this conflict?  I believe that it is possible to do both in some cases as long as there is full disclosure on the part of the auctioneer and appraiser and that they not have any interest in the assets being sold or appraised.  From time to time a client may request an appraisal and then sometime in the future contract the same auctioneer/appraiser to conduct the sale.  As long as the client is made aware of the potential conflict in every instance they do business it might be possible to do both.  There are a couple of scenarios where both the client and auctioneer/appraiser will come under greater scrutiny because of the potential conflict.  One possible scenario might include court cases where this conflict will be brought to light.  Yes they can both be done however expect greater scrutiny and be able to provide a solid appraisal that will withstand challenges. 

If the auctioneer/appraiser is unwilling to openly discuss some of the issues discussed here quickly eliminate them from your list.

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