A Comp Check is a desktop appraisal with an oral report.  The work file is available at my office.  I’ll need to research the market to know whether the ‘comps’ will support a value range relative to the loan amount. In doing this, I will be deciding which sales are ‘comps’ and what those ‘comps’ mean.

Those decisions will result in a range of value for your prospective borrower’s property, which is an appraisal.

There are risks in this kind of assignment. You should realize that the value conclusion could change if I subsequently perform a full appraisal.

Under the research and analysis limitations you suggest, I would not have verified some of the data and would have to use extraordinary assumptions about the market data and your borrower’s property information. I would not have performed some of the analysis steps I might complete in an appraisal assignment without those limitations.

THIS MEANS I CANNOT DETERMINE AN EXACT VALUE - I CAN ONLY PROVIDE A RANGE OF VALUES IN A COMP REQUEST

This amount is only to inform the appraiser of the lender objectives or someone else’s opinion and is not a condition for placement of this assignment with me.

However, if that amount is a condition of this assignment, accepting an assignment under that condition violates professional ethics and I will be unable to accept the assignment.

DON'T MISS THIS

When I perform such an appraisal (comp check), I am assuming the information you provide is correct.  I am assuming information about the condition of the subject, the size of the subject, etc.  It is necessary to use these extraordinary assumptions to provide a credible opinion. However, (and this is the important part) if my assumptions are wrong, my opinion of the value of the subject could be completely wrong!  I can't do anything about that.  You assume the risk when you ask me to perform an assignment under these conditions. 

If you subsequently order a full appraisal, you will be responsible for the cost of the appraisal no matter what the results.  I cannot and MUST NOT appraise to a pre-determined value.