When appraisers are called upon to testify in court, many unknowns can surface, simply because most appraisers rarely do this, and truly don’t know what to expect.

Attorney Mike Rikon, of Goldstein, Rikon, Rikon & Houghton, P.C., says an appraiser should expect a vigorous cross-examination once he or she enters the witness box because everything in their appraisal can and may be challenged.

“An appraiser should verify with an attorney when the expert’s testimony will be presented,” Rikon told Valuation Review. “And as far as what to do when there is a trial objection, the witness must follow the direction of the judge.”

Rikon’s first position after law school was as an assistant corporation counsel for the city of New York in the Condemnation Division before being offered a clerkship with Judge Albert B. Blinder in the New York State Court of Claims. Rikon addressed issues pertaining to what appraisers should look for in selecting a real estate reporting service and whether or not that is a viable path to go down in preparing for court appearances.   

“An appraiser should use a real estate reporting service which is recognized and reliable as a first step in researching value,” Rikon, who left for private practice in 1980, told us. “But the appraiser cannot simply rely on the report regarding a sale. The sale must be confirmed with a party to the sale. A copy of the deed should be obtained and reviewed. 

“As to jurisdictions requiring curriculum vitae (a summary of skills much like a resume) for an expert, each jurisdiction will have court rules for their state. Most have rules requiring disclosure of expert witness and their qualifications,” he added.

Rikon also touched on how important it is for the appraiser to pay attention to detail regarding their overall appearance inside the court. He said that the appearance of an appraiser or any expert is extremely important. A witness must look like a professional in court. A trial is a very serious matter, and a witness who appears without a tie or in a sports jacket will not be well regarded by a judge or jury, he said. 

 “I had an appraiser who came into court wearing a sports jacket and slacks. The judge gave him a look that said it all,” Rikon said.

There are specific fundamentals and formats of a trial with which appraisers should be familiar because the last thing the court wants to see is an unprepared witness.

“Any expert should be familiar with the basic format of a trial and what to do if testimony is objected to by counsel,” Rikon said. “I have witnessed an appraiser being so unprepared that the expert was unfamiliar with his own report. Some appraisers have an assistant complete the appraisal. This quickly becomes evident on cross-examination.

“Appraisers should remember to turn off their cell phones completely. Not talk to another when a trial is proceeding. Sit properly, don’t slouch or stretch out,” he added.

There is also the matter of what information or answers should an appraiser not offer up during testimony when serving as an expert witness. One has to be careful of saying too much and not providing the information the court is seeking from witnesses.

In particular, according to Rikon, an expert should not attempt to help a cross-examiner. 

“Some lawyers don’t know how to ask questions to prove a point. I have witnessed appraisers feeling bad for a hapless attorney and suggesting the questions,” he said. “An expert should never answer a question with more information than is asked. Never testify by providing examples of other situations. The goal is to answer questions with brevity and get off the stand quickly. An appraiser should never offer information or documents.”

In another article, Rikon discusses USPAP, and according to that document, an appraiser is required to maintain a work file for at least five years, or two years after the litigation is complete. As an experienced litigator, Rikon spoke to appraisers not complying with such a requirement, and how damaging can that be to a case.

“I often observe appraisers violating USPAP record requirements. I just tried a case where the appraiser did not have copies of reports he sent for review,” Rikon said. “Yet, he testified he made a prior appraisal and sent it for review. He further testified he made changes to the report. I asked for the court to make a negative inference.”

Rikon also mentioned that on cross-examination, prior inconsistent statements can hurt the credibility of an appraiser on the stand.

“If an appraiser makes a prior appraisal, he can be impeached on cross-examination if that earlier report was higher, or had a substantial different factual statement, like a different highest and best use,” he said. “I have noted appraisers dropping higher sales from the final report. Judges do not appreciate these bad-faith efforts to limit compensation.”