Donating Free Appraisals...Seems Like a Bad Idea

[Stantheman]

A good buddy learned years ago a free appraisal does not relieve you of liability. The judge ruled against him.

We recently quoted an appraisal for $800. When we found out it was for the World Relief Fund, to help a family who owned a home bring their son and grandson from Tawain we did it for $100. We thought it was important to charge something for both parties.

 

[Zoe]

I'm not sure, I didn't ask.

Your not like me. LOL

 

[Zoe]

Don't do it. No good deed goes unpunished.

Donate a $50 gift card to a local restaurant instead if you feel the charity is worthwhile. A gift card can't sue you a few years down the road.

Yeah. I don't know though. $25 may be all IRS allows for deduction.

 

[Zoe]

I don't see any problem with it if you want to. I wouldn't use FNMA forms. Keep it clean with USPAP on another form. Have a good work file.

Do not deduct it as a charitable donation or business expense. Just give it out of goodwill.

 

[Zoe]

If you use another generic form, you can reference your work file. You need a signed certification in the work file and all the other USPAP requirements.

I would probably do an engagement letter also for whoever you did the appraisal for and have them sign it and put it in work file.