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Pro Bono Appraisals

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Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Sometime I get amused....

Had an urgent request from a CPA for someone who was receiving gas royalty checks. They didn't have a legal description, nor income nor a copy of the mineral lease.They had no idea what the value was and wanted me to send them a letter with the value on it. But the kicker was "we don't want it, if it costs anything.." What the heck did they think I do for a living? This was for the lady to receive medicaid.

I am confident, in the end, they will basically give it away or sell really cheap and I suppose if dishonest I would make an offer. The drilling unit has sufficient space for 4 additional wells and has a future value far in excess of the income it generates currently.
 

Mark K

Elite Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
I am confident, in the end, they will basically give it away or sell really cheap and I suppose if dishonest I would make an offer. The drilling unit has sufficient space for 4 additional wells and has a future value far in excess of the income it generates currently.

I don't see that as being dishonest. If so inclined, I'd tell them I don't work for free, and make an offer good for 30 days. If, in that time, they can find someone to pay more, so be it. You might actually be doing them a favor and you might make a decent return on your investment.
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Sure, no charge....just cost ya 10% of the royalties in perpetuity.
 

DTB

Elite Member
Joined
Jun 11, 2004
Professional Status
Certified Residential Appraiser
State
Illinois
Sometime I get amused....

Had an urgent request from a CPA for someone who was receiving gas royalty checks. They didn't have a legal description, nor income nor a copy of the mineral lease.They had no idea what the value was and wanted me to send them a letter with the value on it. But the kicker was "we don't want it, if it costs anything.." What the heck did they think I do for a living? This was for the lady to receive medicaid.

I am confident, in the end, they will basically give it away or sell really cheap and I suppose if dishonest I would make an offer. The drilling unit has sufficient space for 4 additional wells and has a future value far in excess of the income it generates currently.

What would be dishonest about making an offer on that property?
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
seems like the CPA would have some fiduciary duty to make sure they really do find out what that value is.
Yes, they might try capitalizing the income.
You might actually be doing them a favor
or screwing them.
just cost ya 10% of the royalties in perpetuity.
contingency issue. I suspect if the state DHS objects and denies them medicaid, they'll be back willing to pay.
 

Gobears81

Senior Member
Joined
Nov 7, 2013
Professional Status
Certified General Appraiser
State
Illinois
I have done two pro bono appraisals in the past. Both were for non-for-profit/charitable organizations and both appraisals were on their buildings which were special use. I was not expecting them to write me a thank you card or anything like that, but suffice to say that I was a bit underwhelmed with their response (with one giving no response). Maybe they didn't like my values, but nonetheless, it was quite a bit of work done for free. I try to be extremely generous wherever possible, but the lesson learned from those two appraisals is that any donations, etc. are done on the side and that I'm not doing pro bono anymore, regardless of who it's for
 

TRESinc

Elite Member
Joined
Dec 1, 2011
Professional Status
Licensed Appraiser
State
Ohio
I have done two pro bono appraisals in the past. Both were for non-for-profit/charitable organizations and both appraisals were on their buildings which were special use. I was not expecting them to write me a thank you card or anything like that, but suffice to say that I was a bit underwhelmed with their response (with one giving no response). Maybe they didn't like my values, but nonetheless, it was quite a bit of work done for free. I try to be extremely generous wherever possible, but the lesson learned from those two appraisals is that any donations, etc. are done on the side and that I'm not doing pro bono anymore, regardless of who it's for


i feel the same way. about 10 years ago or so got a call from someone who i had done an appraisal for when they purchased their home. their church had a house next to the parking lot and they wanted to get an appraisal performed to see if they should sell or just raze and expand the parking lot. i was feeling particularly generous that day and things were really slow (late january in ohio = lots of free time), plus there was a really good restaurant in the area that i don't frequent as much as i would like to, so i took the order pro bono. i didn't get a card, call or any form of communication once i completed the report. i didn't even get a thank you via email!

that was the end of my pro bono days. if the situation makes me feel so inclined i will give a discount now but there is no such thing as a free appraisal in my world anymore.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
or screwing them.

I liked this part of the post. I'd feel the same way. But that's me, personally. Another may not look at it the same way ("Hey, they want to sell and I may want to buy; I'll make them an offer.").
There's nothing wrong with having superior knowledge and using that superior knowledge to strike the best deal. I would just have a personal reluctance (and I stress "personal" as in "me") to use that knowledge in this kind of situation.
 
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