One word for you.... RUN!!!!!!!!!! It's not worth the risk or the grief you'll encounter if everything doesn't go just right. i was placed in a similar situation recently and politlely declined due to "being backlogged"
You cannot appraise a property to which you have an interest in. By "interest" it is generally understood as being a financial stake. You can appraise the property and disclose, as long as you think you will remain objective. I appraised my sister's house and I remained totally objective. I in no way would want to see anyone upside in a loan by giving an inflated report, much less my sister.
The interesting question is, if you own a condominium, or a house in a PUD, where you all own a percentage of the common elements, can you appraise a neighbor's house with deeded ownership in the same common elements youR property has ownership in? Technically, you share an interest in the same property that the house you are appraising does, so you are including value for a piece of property you have a financing interest in.
" I hereby certify I have no personal current or prospective interest in the real property that is the subject of this appraisal assignment, nor in the parties involved - EXCEPT my Mother-in-Law, the owner, because I reallllllly hate her cooking - so if the appraised value helps her sell her house she won't have to move in with ME ".
What does your gut tell you....if you feel that you have to ask then you already know the answer..
I would be honest and tell who ever ordered the appraisal that you are related to the owner of the subject and you cannot do this report. Most of the time the client will appraeciate the honesty...heck we all have relatives, of some kind, including those riding brooms:icon_mrgreen: don't we??
As a matter of fact I think appraisers should not be allowed to appraise homes within a couple of miles of their residence or property - maybe not even in the same high school district because their appraisals could easily impact their own property value.