The client believes your value conclusion is too low, and asks you to “simply” lower the cap rate. What do you do—how does an appraiser handle the disconnect between client expectations and the ultimate value conclusion (never mind retain credibility and objectivity).
“First, you smile,” said Peter Bowes (Bowes & Co., Denver, CO), who spoke at the recent meeting of the Colorado Coalition of Appraisers (CCA). “Be friendly,” Bowes added—and then ask the client to help you. Ask for the data, the sources, the documented or other defensible support for the particular aspect or assumption of value that the client would like you to change. “Consider anything,” Bowes suggested, but “commit to nothing.” By engaging the client in the process and the need for substantiated values, you’ll go a long way to maintaining your conclusions, your client relationships—and your reputation.