Basis value of home in 1983?

[Pete Humphrey]

thanks!

Ok - so what I hear you all saying is that the word "basis" shouldn't throw me - she's just asking for another appraisal. I have Realist and NDC data, so hopefully I'll find some comps there. This is a very unique custom built neighborhood right on the ocean, so it could be very difficult. The appraisal I did a year ago came in at $1.7 million. It was difficult then do to unique nature of the property and neighborhood. I typed the original appraisal on the AI form and would probably choose to do this again, or better yet a narrative.

What do you all charge for something like this? I could see this taking many long hours, but it's one of those that until I get entrenched into it, I will have no idea.

 

[Marcia Langley]

Malissa,

I agree with the others that she probably just wants a retrospective appraisal. But I also agree with you that her use of the term, 'basis' may indicate she has a tax qustion. I'd be sure to get the SOW very clear with her.

 

[Kevin A. Spellman]

Ok I will let this secret out. Here in MA we have a probate department within our court system. Wills are typically held in the probate court and this department is the custodian of records for the court. There are times value is placed on real estate and is stated within the inventory documents with the will. This may not be a true value at that time, but may provide some guidance.

 

[PropertyEconomics]

Basis would refer to the value of the property as of the time she acquired it or came into title, I am assuming. It is a tax question because she must pay capital gains on the difference between her basis and what she sells it for.
Do not let basis throw you off at all. That is not your issue. That is something for the accountant to be worried with.
Simply prepare a retrospective value as of the date in 1983 and then let the accountant do the accountant stuff.

Merely appraise the property as of the 1983 date, use the necessary assumptions, and you are going to be fine. I would put this on a GPar form I believe. Or you could put it on the 2004 form I would think but I would not put it on the 2005 form for this is not a mortgage transaction.

Charge well.

 

[CANative]

Melissa...

Study Statement 3 in USPAP. This will be very helpful in answering your questions about retrospective appraisals.

For you old-timers...

I'm just fnishing a retrospective with a value date of Nov. 7, 2001. Do you recall any specific conditions for this time frame in relation to 9-1-1? I've spoken to a couple of appraisers and my dad and brother and they seem to remember that many listings were withdrawn or cancelled during those few months. Does anything come to mind that might have an effect on value?

 

[Kali the Boston Terrier]

I just did a property that I was required to do a retro from 1962, 1975 and 2007. For both the 1962 and 1975 values I went to the local library and pulled up classified listings, that gave me at the very least an upper boundary for the subject's market. For the sales, I went to my local courthouse and took a list of similar properties that I could identify out of public records. I then searched the register of deeds of every property for a deed transfer. I then had to go down into the basement of the courthouse and look at each deed for a sale price. 1975 was the easy one, 1962 was hard because Michigan did not require sale price disclosure until late '60s. SO for that figure I took the original sale price from 1950 and applied the CPI for the area forward to 1962. I then took a CPI figure from 1975 and applied it to the 1975 opinion of value. They were within a $1000 of each other, so I used the listings I got from the library as my upper boundary.

For a test of reasonableness, I used assessment values from then. Stated that the assessment represented the low boundary because they did not contest the values with the City at least somewhat saying they agreed with the low end. Just my thoughts

 

[New Orleans Guy]

I just did a property that I was required to do a retro from 1962, 1975 and 2007. For both the 1962 and 1975 values I went to the local library and pulled up classified listings, that gave me at the very least an upper boundary for the subject's market. For the sales, I went to my local courthouse and took a list of similar properties that I could identify out of public records. I then searched the register of deeds of every property for a deed transfer. I then had to go down into the basement of the courthouse and look at each deed for a sale price. 1975 was the easy one, 1962 was hard because Michigan did not require sale price disclosure until late '60s. SO for that figure I took the original sale price from 1950 and applied the CPI for the area forward to 1962. I then took a CPI figure from 1975 and applied it to the 1975 opinion of value. They were within a $1000 of each other, so I used the listings I got from the library as my upper boundary.

For a test of reasonableness, I used assessment values from then. Stated that the assessment represented the low boundary because they did not contest the values with the City at least somewhat saying they agreed with the low end. Just my thoughts

OMG!! What did you charge for that forensic investigation? That would be a very expensive appraisal for me to do.

 

[Brad Ellis]

Melissa,

The basis for a property is the value (market value) as of the date of demise- period. It matters not that the siblings have a dispute.

To go back to 1983 for a basis would assume that the decedants died back then- is that the case? If not, and I will assume not since you just did one for them last year, they may want to know the market value but it would not be their basis (unless the parents died back then).

Brad

 

[Kali the Boston Terrier]

John...I charged by the hour It was pricey, but it was kind of fun. But then again it was probably fun because I was getting paid well.

 

[larryhaskell]

Since there is a dispute, you should have an agreement with your client that the fee you are charging is for the appraisal only and any time in court if it goes that far will be extra at your going hourly rate. Once you said family members having a dispute I forgot the rest of your question. Based on my personal experience (long story), family members fighting over their parents estate is worse than non family members fighting over a property. For some reason, extended family members believe they need to take sides.