Donating Free Appraisals...Seems Like a Bad Idea

[Dale Floyd]

Before the HVCC, my firm waived appraisal fees when it involved the refinance of a widow's residence regardless of the lender. But back then, we'd get a call about the circumstance up front rather than accepting a blind assignment once AMC's were involved.

Funny thing - I believe some would criticize me today for doing that only for a specific group back then, but we did.

Not sure there's anything wrong with giving a coupon for a free service, as long as it's disclosed and there is no bias.

 

[Sadie]

Before the HVCC, my firm waived appraisal fees when it involved the refinance of a widow's residence regardless of the lender. But back then, we'd get a call about the circumstance up front rather than accepting a blind assignment once AMC's were involved.

Funny thing - I believe some would criticize me today for doing that only for a specific group back then, but we did.

Not sure there's anything wrong with giving a coupon for a free service, as long as it's disclosed and there is no bias.

Sigh, before HVCC. Miss those days

 

[Long Walk]

No doubt that I'd want to make sure whomever 'bought' the service agreed to terms of service that I thought would address those types of concerns. My only point was/is that - when we think of someone 'donating' their professional service, IMO there is no difference between donating an appraisal and donating a divorce service.

Scope of work needs to be clearly spelled out in the prize offering. It is the offering that usually causes the problem, IME. How many times have we heard about the clever lawyer forcing redemption of a clearly out-dated coupon because there is no expiration date?

Clear scope of work with a bail-out clause would be a help. A cash value disclaimer and maybe a cash value substitute for the appraisal. Definitely want an attorney writing those T&C. Defensive legal drafting should head off most of the problems.

But that seems like a lot of squeeze for not much juice, IMO.

 

[alebrewer]

Scope of work needs to be clearly spelled out in the prize offering. It is the offering that usually causes the problem, IME. How many times have we heard about the clever lawyer forcing redemption of a clearly out-dated coupon because there is no expiration date?

Clear scope of work with a bail-out clause would be a help. A cash value disclaimer and maybe a cash value substitute for the appraisal. Definitely want an attorney writing those T&C. Defensive legal drafting should head off most of the problems.

But that seems like a lot of squeeze for not much juice, IMO.

There definitely would have to be some pretty well laid out expectations, certifications, and limiting conditions, and there have been some great points raised on why folks would NOT donate appraisals, but if the cause was worthwhile, I probably would. That's just me, though. I completely respect folks that choose not to. Just don't use 'appraisal is different than other services' as an excuse not to be involved in worthwhile projects - donate time, money, whatever...

 

[Long Walk]

There definitely would have to be some pretty well laid out expectations, certifications, and limiting conditions, and there have been some great points raised on why folks would NOT donate appraisals, but if the cause was worthwhile, I probably would. That's just me, though. I completely respect folks that choose not to. Just don't use 'appraisal is different than other services' as an excuse not to be involved in worthwhile projects - donate time, money, whatever...

Totally agreed. Somebody mentioned Habitat for Humanity. I would definitely try to help them....right after I took all the necessary defensive steps.

 

[Cob]

I was recently asked by my local MLS if I'd donate a free appraisal for a raffle they hold to raise money for scholarships for local kids. I told them "no" and cited ethical reasons. They responded that it wouldn't be for an agent, just for a private party if they wanted to find out the value of their property. I told them "no" again and said I didn't want to take any chances with my license.
Personally, there's just so much work that goes into an appraisal, especially in the rural area I'm in, that I don't want to work for free. Aside from that, there's so much that we as appraisers are responsible for and have to put our signature to that I'm not comfortable doing that for free. I'm curious as to what your opinions are on this? Anyone else ever been asked to donate an appraisal for free? What did you say?

They asked, you said no, that's the end of it.......

 

[Gobears81]

I've donated two appraisals in the past, and regretted it both times. I've heard others say that something is valued more when we have to pay for it. Send them a donation if you feel so inclined, but no pro bono

 

[nachocheesefries]

I got an email from a non-profit (starts with 'Make....ends with Wish'), asking if we could appraise a commercial office building they were selling. Quoted a fee, got an email back within minutes asking if I could do it for any less since they were a NoTfOrPrOfIt.

My mom and a friend sponsored an event for one of their sick kids 4-5 years ago...some big party with pizza, petting zoo, etc. at a park. Not a one of them said thank you, including the family.

Don't get if you don't ask I suppose.

 

[Fernando]

Speaking of ungratefulness. My tenant's personal garden hose had a big crack and was sprouting water all over when in use. It was like this for a long time.
I decided to buy a new garden house but the connecting hose to the faucet was sprouting water. I was planning to get to it but forgot.
When I saw tenant recently, she complained about the house that I put there.

 

[Marty Boone]

I have done pro bono work for Habitat for Humanity. Different from a raffle prize though.

I have done several appraisals for HfH and always given them a discount on my fee. My accountant suggested that I bill them my regular fee and donate the money back that I would have discounted. I no longer provide appraisal services for HfH.