7/09/2011

Excerpt: Journal of Advanced Appraisal Studies - 2011

Fellow appraiser Jerry Sampson, ASA has been a strong advocate of the Journal of Advanced Appraisal Studies project.His is also the penultimate article in the 2011 edition, so only one more excerpt from 2011 remains to be posted.

A few years ago Jerry wrote on how to compile and get the most utility while constructing an appraisal library. For the 2011 edition Jerry wrote on dealing with difficult customers and situations. As appraisers, dealers and auction house specialists, most have all had delicate situations as well as difficult clients.

Jerry starts out with what he calls the 4 "D", death, divorce, Debt and donation and proceeds to dealing with elderly, conflicting personalities and alleviating the issues.

Jerry writes in his article, Dealing With Difficult Clients

Our business is based heavily on what can be called the four “D’s.” For those of you who don’t know what the four “D’s” are, they are Death, Divorce, Debt and Donation. All of these categories can be incredibly stressful and emotional. A normally rational-acting person, when faced with one or more of these four “D’s,” can become a stressed-out, illogical and emotional wreck. Everyone at some time in his or her life will encounter experiences in these categories.

Death: The death of loved one can be one of the most emotional events to happen to a person. Even with careful estate and funeral planning the person or people left behind will be sent reeling. When proper planning hasn’t been done beforehand, or the death was a sudden one, it can be a disaster, with changes to finances, deeds, ownerships and taxes looming up ahead, not to mention to emotional scars that can last a lifetime.

Divorce: Divorce can be a tricky one that very often pits two people together with feelings of bitterness, hate and retribution. A divorce assignment will call for an even more delicate touch. Often there will be instances of questions of ownership for personal property. In most instances, the longer the marriage was before the divorce, the worse a couple can act. An appraiser can work for both divorcing parties with full and complete disclosure to all intended users. Still, it can make for uncomfortable situations.

Debt: A change in finances can be one of the most emotional circumstances that can happen to a person. And it will cause a person to act irrationally out of fear and desperation. Often a person in this situation will grasp at straws and be drawn into wild speculation. This is when it is important for you to explain the intended use and market approach aspects to your client or a possible client. They can perceive values in a totally different light than you. It is important as an appraiser that you explain in detail to a person in this category that you are an appraiser and not trying to purchase their property. Often these people are looking to liquidate items quickly and are not typically interested in an appraisal. Some will understand the importance of a proper appraisal and its role in selling property; others are looking for free appraisals to sell elsewhere, so be cautious.

Donation: Most donations can be a pleasurable event. Donating a favorite item or collection to a museum or alma mater can be enjoyable and satisfying to many people. Knowing that others will see and enjoy an object like they did can be beneficial to your clients and their community. At this time there is the strong possibility that egos can become stronger and the lure of status and prestige associated with larger donations can cause tensions to rise. It's usually at this time that some clients will want or even demand a high monetary value as a way of obtaining status. Pairing a donation with one of the other three “D’s” at this same time can be very emotional and lead to trouble.
If you are interested in contributing an article to the 2012 edition of the journal please contact me with you proposed article idea.  Todd





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