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JenHef · Guest

My appraisal business is currently in a slow time, and I was considering offering a gift certificate to my past clients for every appraisal they order. IE...$35 gift certificate to their choice of resturant for every appraisal that is ordered. Is this legal?

nemmar · Site Admin

JenHef,

As far as I know it is legal and there are no problems with offering a discount or a gift/bonus to appraisal clients. Appraisal standards don't regulate how much you charge your clients so giving a discount to be competitive is fine.

The only factor that I'm aware of that would make it ILLEGAL is if you comprised your morals or the appraisal report conclusions. For example, if a client wants you to "hit the number" with your appraisal estimate of market value, or any other factor on the report, then you CANNOT do that just to get their business. You can't cut corners or give anyone a wrong or misleading impression with your appraisal just to keep the client happy. So by giving a discount or bonus you're client needs to be aware that you will still follow all the appraisal standards in your research and appraisal report just like you would for any other client that pays a higher price for your work.

Here are some good articles on my online Real Estate Library that talk about appraisers being under pressure from clients to "hit the number" and come in at higher market value estimates in their appraisals just to please the client and get more business from them.

http://www.nemmar.com/real-estate-Appraisal-Fraud-Than-Reported.html

http://www.nemmar.com/real-estate-Appraisal-Fraud-Hot-Topic.html

http://www.nemmar.com/real-estate-Illegal-Appraisals-Housing-Bubble.html