My Mother in law is the buyers agent , old friends of mine are moving in town and are her buyers. Lender sent me the request for the house they are purchasing. Is this a conflict for me due to my mother in law/ Friends?
Another thought. What if you can't support the sale price? Your mother in law may not like you any more. Your decision. Your friends may become ex friends. Dave hit the nail on the head. Perception of a conflict is all it would take. Unless you really need the business I would defer to another appraiser and hope they might do the same for you someday.
If this is not a conflict of interest, what is? :!: Are you an unbiased disinterested third party? Not really. You may not have any financial interest in the party but you certainly DO have an emotional interest involved. Your relationship with your mother in law as well as that of your friends is at stake. (Actually, you might have a financial interest. Does your mother in law buy you gifts? Are you in her will? Would any of that money come from the commission she gets from the sale? If the property does not "hit value" who gets mad? Will the buyers think your mother in law is trying to rip them off? Will your mother in law be upset with you? How about down the road, if the market goes flat or values decrease (they have and will in all business cycles), if you did hit value, could the buyers say you inflated the price to help your mother in law close a sale? I don't care how bad you need the business, you don't need the business. It could cost you more than your fee :!:
The simple fact that you thought to raise the question means that this situation could be construed as having a conflict of interest. If you see it as a possibility, others would no doubt see it as fact.
Plus, this can only be a loose/loose assignment. Your report will be reviewed by your "friend" and your M-in-L will be earning bucks off of your performance or loosing bucks by your lack of it.
Stay clear. Smile, say 'thank you' and that you appreciate the offer but cannot take the assignment.
Oh yes, one other thing. After your competition does the assignment, don't try to defend them to your friend when he starts going over the report. That's a loosing situation also.
Now that everyone has raised the issue; are you confident :?: do you have self discipline :?: can you perform an unbiased opinion of value :?: At this point I think you should do it, to see if you are a Real Appraiser or not. You of all people should know your market and therefore, you of all people should know value :?: Right :!: Can you present a truly non misleading report :?: If you think you can go for it :!:
The only thing actually preventing you from doing this job, is you already know the purchase price, and cannot voice your true input regarding the property, because the market is in a constant change.
Turning down the assignment because the appraiser already knows the price, doesn't sound good enough. If the appraiser accepts the assignment, the appraiser is going to receive a copy of the PA anyways.
Having the guts to do the assignment doesn't make ANY sense to me at all -- as in, at all.
This appraiser is related to one of the parties. That's about all it takes to raise the conflict of interest flag. This appraiser is not a disinterested party.
This appraiser is vulnerable to every conceivable charge. If something goes wrong, he won't have a leg to stand on with the state board or a tribunal. And that's after all parties, including the lender, have run him through the rack. The courts really understand conflict of interest.
Intelligence is learning from others. You don't have to experience everything yourself. Life is too short, and too precarious.
thank you for the support ( I was being crass), but it brought out the best in you and I knew I could count on you; Thanks-
"Intelligence is learning from others; You don't have to experience everything yourself; Life's too short and to precarious" by L.Lyke (MN)
I believe Larry and his wisdom are why this Forum generates some of the best information around - folks you couldn't get this in any Classroom. And when all us elders move on I hope you'll share what you've learned and remember how you aquired the knowledge.