Should I do this appraisal?

[Mary Tiernan]

I appraised a house for a friend's mother cuz she wanted to sell it to her nephew - I didn't really know all the folks involved, and knew I could do an upstanding job.

I appraised it for low $70,000s. I was really surprised at the value, and actually had to pull in an REO to bracket some needed updating and to lower the value a little.

Well, imagine my surprise when I heard the newphew's mother's friend, who is a realtor, told them she could sell the house for $50,000, and he shouldn't pay a dime over that.

Well, I could sell the house for $50,000, it was worth $70,000+ don't even need a sign to sell the house for $20,000 grand less, now do I? (This was in 2005 when prices were stable to slightly increasing and houses were selling within 2 weeks in the neighborhood).

Anyways, the nephew bought the house and has completed some of the updating, probably put about $5,000 into it at the most, small house, doesn't take much to update.

And guess what, he just found out the house across the street sold for $90,000+ !!! Oh my, what a deal!!! Will you look at the equity he has now!!! He is such a smart boy!!!

So, I'm the bad guy cuz I don't know how to appraise - no matter what way they look at it!!!

STAY AWAY - STAY VERY VERY FAR AWAY

Since then, I just explain to folks that the way the system works, it could come about that I had some underlying interest in my friend, relative, acquaintance, etc. getting financially secure, no matter how well documented and written the report was, and it could still come back to bite me and I would just prefer to stay away from situations like that.

I also offer to help my friend, relative, acquaintance review the report to be sure they are knowledgeable about the outcome.

Been a lot happier since.

 

[Karl]

Never; get laid where you get paid & NEVER EVER do a relative a "Favor"

 

[Deleted member 77547]

I would tell them you are prohibited from appraising the property of a relative but offer to refer them to another local appraiser. If you wanted to, you could offer to review another appraiser's work. I appraised a property for a friend years ago. He did not speak to me again for months because I came in lower than he thought it was worth. He also thought the house was larger than it really was and was certain I measured incorrectly. It is like borrowing or loaning money to a friend or relative. Not a good idea.

This is how I usually handle it. I also say this to friends, acquaintences and neighbors and will then refer them to one of the guys I do split fee work for with the understanding that they cannot assign it to me.

 

[Joshua Fookes]

I avoid all appraisals for friends, neighbors, and especially relatives.

I've done some neighbor appraisals in the past. That's where I learned my lesson.

Good advice from all.

 

[Robert Rodgers]

I would not do it, it is just trouble brewing in the background.

I do know someone that did a favor for a friend once, and he wished he never did, cut him a break on the price of his services cause thats what friend do and then dealt with him at least once a day for the next month on what his friend could do to increase the value.

way to much work for not enough pay.

I learned my lesson from watching it happen