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

Charging Agents For Value Estimates

Status
Not open for further replies.
austintheappraisr

austintheappraisr

Freshman Member
Joined
Sep 29, 2015
Professional Status
Certified Residential Appraiser
State
California
Are you allowed to charge real estate agents for giving them your opinion of the value of a property?

Like say a real estate agent wants to know what a property is worth before they list it or before their client puts an offer in.

If they come to me and want to know what I think the value is, can I charge them a fee for pulling up comps and telling them what I think it's worth? Or is that against USPAP? Am I missing something here?

Just to be clear, there would be no loans involved.

Thanks
 
what you are describing is an appraisal. as a trainee you should learn what does and does not constitute an appraisal before you offer the service, and you should charge accordingly.

i'm curious as to why you are asking this question on a public forum vs asking your mentor?
 
The answer is that anything you do is an appraisal. "Comp Checks" are a waste of your time and you are also creating liability for yourself. Say you tell them the value is $200,000. They price it, snapped up in 3 days, and six weeks later the property "flips" for $300,000...guess who wants to sue you for the $100,000 difference? :) Doing market appraisals for individual customers is the most dangerous work you will ever do.
 
you can charge them for a service, but realize whenever you offer a value opinin that you are doing an appraisal. If you have to ask the question here you might want to think this over, as an agent can turn against you if they think your results have harmed their interests in any way
 
Last edited:
What you are describing is an appraisal and going too far.

I like to reciprocate in any way that I can after a real estate agent helps me, but giving them an indication of value qualifies as an 'appraisal' and isn't something you would do for free.
 
You are providing a verbal appraisal report, and what is the opinion based on? How broker describes the property? Google Street View? Prior MLS data? There would be scope of work implications, and If you wish to network, I agree with Nacho, try to help however possible. But don't offer any opinions of what you anticipate the value at unless you make it very clear that you are providing an appraisal and both sides are aware of what implications that entails. Appraisal reports require 11 items for satisfactory USPAP compliance (though simply listing off those 11 items does not in itself guarantee that an appraisal is compliant with USPAP).
 
Austin Fernald said:
Are you allowed to charge real estate agents for giving them your opinion of the value of a property?
Click to expand...
Most definitely because it's an appraisal that you're giving them. WHETHER or HOW MUCH you charge (or not) is up to you as a business decision.

Austin Fernald said:
Like say a real estate agent wants to know what a property is worth before they list it or before their client puts an offer in.
Click to expand...
It's an appraisal. I just finished up one on a "difficult" property. Agent was having trouble coming up with a list price. I've done many of these types of properties over the years so they hired me to help out. I charged for my service, they paid, I gave them an appraisal.

Austin Fernald said:
Just to be clear, there would be no loans involved.
Click to expand...
Loan or not doesn't matter. Once you give someone your opinion of value, and they perceive you as an appraiser, you've given them an appraisal and it better follow USPAP. Loan or not, again, doesn't matter

TRESinc said:
i'm curious as to why you are asking this question on a public forum vs asking your mentor?
Click to expand...
TRESInc makes a good point
 
Austin Fernald said:
Are you allowed to charge real estate agents for giving them your opinion of the value of a property?

Like say a real estate agent wants to know what a property is worth before they list it or before their client puts an offer in.

If they come to me and want to know what I think the value is, can I charge them a fee for pulling up comps and telling them what I think it's worth? Or is that against USPAP? Am I missing something here?

Just to be clear, there would be no loans involved.

Thanks
Click to expand...

See Page 14-

http://www.orea.ca.gov/pdf/CAv12n01.pdf
 
Yes you can charge them, it is called an appraisal. I have one next week; $400.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com
Back
Top