Are comp checks legal?

No. Under USPAP, providing a value opinion without proper inspection and analysis is a violation of appraisal standards and ethics.

Can’t you just “pull some comps”?

Even selecting or interpreting comps is considered guiding value. If an appraiser influences the client’s value conclusion, it’s an appraisal — and must follow USPAP.

Why do lenders or brokers ask for comp checks?

They often want reassurance that a deal will pencil before committing to appraisal fees. But this shortcut can backfire — legally, ethically, and financially.

What’s the risk of doing a comp check?

It can lock the appraiser into a predetermined value, distort the final report, and mislead decision-makers. It also exposes the appraiser to liability and disciplinary action.

What’s the better alternative?

Order a full appraisal. It’s the only way to get a credible, USPAP-compliant opinion of value — one that protects all parties and supports sound decisions.

Should Appraisers Comp Out a Property Before an Appraisal — Commercial Real Estate Appraisers and Consultants

Why We Don’t Do Comp Checks

What Is a Comp Check?

A “comp check” (also called a value check or comp out) is when someone asks an appraiser to “take a quick look” at comparable sales to estimate a property’s value — usually before committing to a full appraisal. It’s often framed as a harmless favor or a way to “see if the deal pencils.”

But here’s the truth: comp checks aren’t just unhelpful — they’re illegal under USPAP and dangerous for everyone involved.

Why Comp Checks Violate USPAP

The Uniform Standards of Professional Appraisal Practice (USPAP) makes it clear:

You can’t provide a value opinion without inspecting the property.
You can’t base an appraisal on a predetermined value.
You can’t transmit a value — even informally — without completing proper analysis.
You can’t “just pull comps” if you’re selecting or interpreting them. That’s still guiding value.

In short: if an appraiser gives you a number, they’ve performed an appraisal — and if they haven’t followed USPAP, it’s an ethics violation.

Why Comp Checks Are Bad for Decision-Making

Even if legality weren’t an issue, comp checks are a terrible way to make real estate decisions. Here’s why:

Illustration 1: The Missed Opportunity

We appraised a mixed-use site with a market, fourplex, and small commercial buildings. A quick comp check would’ve shown the value didn’t support the loan. But a USPAP compliant appraisal revealed the land was worth more than the improvements, and the highest and best use was as a redevelopment site. The deal went through, and everyone benefited. A comp check would’ve killed it.

Illustration 2: The Predetermined Trap

A broker asked for a comp check on a 5,000 SF retail building. The appraiser pulled comps, gave a value range, and got the job. But during inspection, it turned out the building was only 1,000 SF and had a 4,000 SF covered steel storage area. The appraiser had already “anchored” the value and fudged the report to match. That’s not just bad practice. It’s a liability. The same appraiser was asked to appraise the property a couple years later. Do you want to guess how the appraiser handled the storage area in that appraisal?

Illustration 3: The Misleading Market

A proposed restaurant building had two comps: one leased to a national chain at a strong cap rate, the other vacant and later leased to a mom-and-pop at below-market rent. A comp check would’ve favored the first and ignored the risk signals in the second. Only full verification and analysis revealed the true market dynamics.

The Bottom Line

Comp checks may seem like a shortcut, but they’re a trap. They compromise independence, invite pressure, and often lead to bad decisions. USPAP’s rules aren’t red tape. Rather, they are guardrails to protect everyone involved.

If you want reliable, defensible insight into a property’s value, the only path is an appraisal grounded in analysis, and professional judgment.