IntroductionCruickshank, Garth & Romano is a new real estate appraisal and consulting company. Richard Romano, one of the firm's principals, had just completed a preliminary evaluation of a property for a new client, Watson & Musico. However, his client refuses to accept the assessment and requests that the value be increased by $4.5 million, otherwise he would take his business elsewhere. Richard's decision regarding his client's valuation could have a significant impact on Cruickshank, Garth & Romano's success and its ability to develop new clients. The new company could ill afford to give up Watson & Musico's business, but Richard also wanted to complete the appraisal according to his best estimate of the property's current market value. This article will analyze the ethical issues and alternatives in this case.StakeholdersJohn Mortimer controls Watson & Musico Developments and is well known for his abrasive style and aggressive approach in business dealings. His company is rumored to have very limited cash flow due to its aggressive leasing policy. Due to the depressed real estate market, Mortimer is refinancing all of its properties to reduce its debt service requirements and generate cash flow. Since the amount that could be borrowed from the bank is positively correlated with the appraised value, Mortimer wants his property to be appraised as high as possible. Therefore, he would like Richard to appraise his property at the asking value of $35 million. Richard Romano is one of the three leaders of Cruickshank, Gath and Romano. With eight years of experience and recognized by industry insiders as one of Canada's leading real estate experts, Richard wishes to complete the valuation based on his best estimate of the pro...... middle of paper . .....tiveAlthough, Watson & Musico could move its business elsewhere, Richard should refuse to increase its value. Compliance with AIC's code of ethics is something he has control over, while how Mr Mortimer chooses to respond to this decision is beyond his control. Additionally, Richard would enjoy a better reputation and greater trust among financial institutions. If Mr. Mortimer does indeed give Cruickshank, Garth & Romano a reputation for being difficult, Richard and his associates could counter that reputation by pointing to their firm's strong commitment to being accurate and truthful in their calculations, as well as the strong possibility that banks accept their appraisal value. This marketing strategy would not only set them apart from some of their competitors, but it would also surely attract the attention of potential customers who highly value the integrity and not just the finances of their business..