1. Welcome to AppraisersForum.com, the premiere online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Gift offers by competitors for assignments

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by davidpsmith, Oct 1, 2007.

Thread Status:
Not open for further replies.
  1. davidpsmith

    davidpsmith New Member

    0
    Jul 29, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Texas
    Quick question, I was under the impression that any financial inducement or gift in return for appraisal assignments was unethical/illegal. I have a competitor offering $25 Gift certificates to Best Buy for every appraisal ordered in October. If it is illegal I assume I should report this to The State Appraisal Board?
     
  2. Mr Rex

    Mr Rex Elite Member

    285
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Not illegal. See Management section of USPAP. It must be revealed in the report. Wanna bet he's not doing that?
     
  3. Beth Stevens

    Beth Stevens Sophomore Member

    0
    Jan 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington
    Read the Ethics Rule in USPAP in the "Management" section.
    "The payment of undisclosed fees, commissions, or things of value in connection with the procurement of an assignment is unethical."

    The comment that follows also states, at the bottom, "Competency, rather than financial incentives, should be the primary basis for awarding an assignment."

    I think most States would be interested in hearing about this business practice, but I would make sure that you directly refer them to this section of USPAP.

    Best of luck
    Beth
     
  4. AppraizinAZ

    AppraizinAZ Junior Member

    1
    Dec 31, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Arizona
    I'm sure we'll see a lot more of this in these lean times...
     
  5. 3 Putt

    3 Putt Member

    11
    Aug 18, 2005
    Professional Status:
    Certified General Appraiser
    State:
    Ohio
    Did they raise their normal fee by the $25 or are they eating the cost?

    Where do I order one? As soon as I get the gift card, I'll just cancel!
     
  6. Alison Swain

    Alison Swain Senior Member

    0
    Sep 13, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    I'm pretty sure the gift cards are delivered after the assignments are completed and paid for.

    I don't see anything wrong with it as long as it's disclosed.
     
  7. Mike Garrett RAA

    Mike Garrett RAA Elite Member
    Gold Supporting Member

    56
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    Not illegal or unethical provided it is disclosed. Read the management provision of the Ethics Rule. Now it might be that your state could have some language in the license law that could prohibit such practice...but I doubt it.

    In today's market I think I might pay $50 for full fee appraisals! Nah, just got three new assignments today...all full fee.

    Thank you, thank you, thank you. September was sort of a bust, slowest month order wise in last 15 years; however, I did have 5 full days in the class room teaching which really helped.
     
  8. Mike Boyd

    Mike Boyd Elite Member

    0
    Jan 18, 2002
    Professional Status:
    Retired Appraiser
    State:
    California
    These last two weeks have been my best this year. Maybe a coincidence or maybe the loan officers have decided to come out of the shade and go to work. However, this has always been the best time of the year for me in this business.
     
  9. Restrain

    Restrain Elite Member

    83
    Jan 22, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    As to legal/illegal. Not USPAP. Check state regs. There is, in Texas, an absolute prohibition against such things. Now, it happens, but if caught, can cost you a license.
     
  10. Midwest Guy

    Midwest Guy Senior Member

    0
    Dec 12, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Missouri
    Respa!

    Ever heard of RESPA?

     
Thread Status:
Not open for further replies.

Share This Page