No Comp Searches

We receive calls daily requesting "comp searches". These requesters are almost always Mortgage Brokers or Agents, and they begin by saying that they would like to place an order for an appraisal, but that their client is unsure of the value of their home or property. The Broker or Agent then states that they would like to make sure the value of the home or property will support the loan that the client desires or the Broker or Agent wishes to make, so that their client will not suffer the loss of appraisal and application fees in the event a loan is not possible.

It is a violation of USPAP, the Uniform Standards of Professional Appraisal Practice, standards which Licensed or Certified Appraisers must follow in the preparation of any appraisal report, to accept an assignment in which a predetermined value or value range is required. It is possible for an appraiser to provide general market data to a requester if no anticipated value for the subject of the appraisal is discussed. However general market data cannot predict a value for a specific property because there are many variables that may affect values which are not listed in the public records an Appraiser can access in the office . These include, among other things, condition of the home or property and external influences.

It is our belief that comp searches provided in these situations are not reliable and may be misleading, and for that reason we do not complete them. Its is also well known to all appraisal companies that some requests for comp searches are made to several companies, and the company that provides the highest value range will be the one to receive the order. We believe that the practice places pressure on the appraiser to inflate values, and as such is negative influence on the Real Estate, Mortgage, and Banking  industries from which so many of us derive our living.