Of course comp checks are legal! 

There you go with that spelling.

Do you think the appraisers got confused when their bat signal went off and they couldn't find the comp check thread?

Pam Crowley is carrying my love-child.

...I just wish she'd return him back to Jessica Alba.

only if you persuade a value to the appraiser

Comp Checks are always legal; Especially if you tell the appraiser what the value must be beforehand.

If you pay extra to get that number, then you are just following standard protocol.

hahahahahahahahaha!!!!!!!!!!!!!!!!

this only applies in Ohio

Please, don't let Rita in to see this, I actually value my time w/ my family!

HAWTguy did a comp check for me once. Seriously, he did! He made me promise not to ever tell.

What is a comp check? I need your definition to answer the question.

Greg Boyd:

What is a comp check? I need your definition to answer the question.

I'm not about to stick my hand in THAT bear trap!

I'll chase the bear...

Comparable checks are perfectly legal, but they are regarded as an "appraisal". It is up to the appraiser to decide whether to charge for the work, but they should keep the necessary legal record of it because a true "Comp Check" requires value estimates, aka an "Appraisal" by comparing them to your subject property and tweaking to give an opinion of value. Asking for one is not "illegal".

Most brokers and LOs confuse "comp check" with "recent sales data", which makes appraisers want to kill everyone involved as they have a very specific professional definition for "comp check". Since "sales data" is not used for a formulated opinion of value for the subject property itself, that does not require the appraiser to actually complete paperwork and records for an appraisal opinion. They are merely telling you what prices have been placed on recently-sold houses in a certain area. Along with interviewing the customer as to comparing the condition of their property with the rest of the neighborhood, this is more than enough information for a good broker or LO to form their own estimate to work on the loan structure.

Now, if you insist upon stating or requiring a value for your subject property to the Appraiser, or the desire of specific comparables to create that value, that is not legal by any means.

You really shouldn't even mention your subject property address with your request. To be fair to all involved, you should ask an appraiser for recent sales data ranges in the radius of a stated street-corner, aka "5th and Elm". Hopefully, you have an appraiser that will do that or tell you how to do it yourself, and nobody is compromised legally because you do not tie your request to any specific property.

Boiling it down in a shorter way;

When an Appraiser is "comparing" properties, they are guessing at values and must "compare" them to another specific property you are stating. Because they are licensed professionals to do this, it constitutes binding them legally to those opinions and they must keep a legal record of it, because they could be sued for malpractice if they don't do it correctly. That is an "appraisal" and they need to be paid for their service, like any other service provider. It's like telling a doctor to open you up, set your broken bone, put a cast on you, and THEN tell you how badly it was broken... FOR FREE. If the leg doesn't heal properly, you could sue them for not checking correctly in the first place, because they are legally bound to do so.

When an Appraiser is giving you "sales data", they are just telling you the value of prices that are already determined because the houses were sold for those prices. This does not require them to give any opinion at all and just state information that is already public knowledge. It can be done very quickly and they usually will not charge for this unless you are acting inappropriately towards them.

Seth Ramsey:

HAWTguy did a comp check for me once. Seriously, he did! He made me promise not to ever tell.

Hard to take you seriously when you are guffawing on every post.

What is this 'Comp Check' that you speak of?

Here's the deal - comp checks by anyone but a licensed appraiser are legal. Any appraiser that provides a homes "probable" market value is in direct violation of USPAP (Uniform Standards of Professional Appraisal Practice) guidelines. Following is a copy of the ETICS RULE obtained for the Appraisal Foundation's web-site:

It is unethical for an appraiser to accept an assignment, or to have a compensation arrangement for an assignment, that is contingent on any of the following:

1. the reporting of a predetermined result (e.g., opinion of value);

2. a direction in assignment results that favors the cause of the client;

3. the amount of a value opinion;

4. the attainment of a stipulated result; or

5. the occurrence of a subsequent event directly related to the appraiser’s opinions and specific to the assignment’s purpose.

Advertising for or soliciting assignments in a manner that is false, misleading, or exaggerated is unethical.

Matt Hughes:

Any appraiser that provides a homes "probable" market value is in direct violation of USPAP (Uniform Standards of Professional Appraisal Practice) guidelines.

Not sure where the above came from, but appraisers are always dealing in "probables."  Most probable is the very definition of market value.

DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open
market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming
the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and
the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both
parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a
reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in tefms
of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold
unaffected by special or creative financing or sales concessions' granted by anyone associated with the sale.

An "appraiser that provides a homes "probable" market value is" is providing an appraisal. Call it a comp check if you like or call it anything else that comes to mind and the opinion of value is the result of an appraisal assignment and the development and reporting requirements have to comply with the minimum standards of USPAP.

The problem with "comp checks" as most of this sector of the mortgage lending industry uses the term, is that there is a quid pro quo involved. It's not reasonable to assume that appraisers provide free appraisal services because they need practice in preparing appraisal reports or as a charitable contribution to underpriviliged mortgage brokers. They perform this service because they excpect, or hope, to get a second appraisal assignment on the subject property for lending purposes. An assignment they will get paid for. This is wrong in the first place because it compromises their ability to remain unbiased because being awarded the subsequent paying assignment depends on the results of the first, unpaid assignment. It is wrong in the second place because the appraiser accepted a fee arrangement based on predetermined assignment results (the client ordered, and offered to pay for, the second appraisal because they were confident this appraiser would come up with the same results). It is usually wrong in any case because in order to do free appraisals all day long for hoardes of cubicle brokers, corners must be cut... Corners which state laws, regulations and government codes prohibit the appraiser from cutting.