IntroductionCruickshank, Garth & Romano is a new real estate valuation and consultancy firm. Richard Romano, one of the firm's principals, had just completed a preliminary appraisal of a property for a new client, Watson & Musico. However, his client refuses to accept the valuation and demanded that the value be increased by $4.5 million or else they would take their business elsewhere. Richard's decision on his client's quote could have a major impact on the success of Cruickshank, Garth & Romano and its ability to acquire new clients. The new firm could not 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 paper will analyze the ethical issues and alternatives for this case. Stakeholders John Mortimer controls Watson & Musico Developments and is well known for his abrasive style and aggressive approach to business dealings. His company is said to have very limited cash flow due to its aggressive leasing policy. Due to the depressed housing market, Mortimer is refinancing all of his properties to reduce debt service needs and generate cash. Since the amount that can be borrowed from the bank is positively related to the appraised value, Mortimer would like his property to be valued as high as possible. Therefore, he would like Richard to value his property at the required value of $35 million. Richard Romano is one of three principals at Cruickshank, Gath and Romano. With eight years of experience and recognized by industry experts as one of Canada's leading real estate experts, Richard wants to complete the appraisal according to his best estimate of the pro...... middle of paper ...... although, Watson & Musico could take their business elsewhere, Richard should refuse to increase the value. Compliance with the AIC Code of Ethics is something over which he has control, while how Mr Mortimer chooses to react to this decision is outside of his control. Furthermore, Richard would be more respectable and trustworthy among financial institutions. If Mr. Mortimer gives Cruickshank, Garth & Romano a reputation for being difficult, Richard and his partners could counter this by publicizing their firm's strong commitment to being accurate and truthful in their calculations along with the high possibility of banks accepting the their calculations. estimated value. This marketing strategy would not only separate them from some of their competitors but would also definitely attract the attention of potential customers who highly value the integrity and not just the financials of their business..