I hear it is a pretty big challenge. Who is the client?
Also... what is the intended use?
I know a lot of folks from the Big 4 accounting firms who appraise there and other international destinations on a fairly regular basis. In most cases, they are doing valuations for ASC 805 (purchase price allocation/business combination) purposes but do valuations for other purposes as well. Hence my question.
One key area to think about is the valuation standards to be followed. In other words, the USVI is what is known as an "insular area" of the US. While it is not a US state, the residents have US citizenship rights. Therefore, I would postulate that USPAP would need to be followed but you might want to consult with the IVSC (International Valuation Standards Council) to see if they have any level of applicability to your assignment.
Of course, competency would be required... but I'm sure that you already knew that without me having to restate it. However, I leave no stone unturned. :icon_mrgreen:
I just tried to Google CoStar to see if they have coverage there, but couldn't find any information. You may want to try calling them to check.
You may want to try doing some basic research if you know anything about the properties that you're going to bid on... like check to see if they have zoning, deeds, tax records, etc, etc. I don't know if your potential client has given you any information on the properties or not but, if so, go through the paces like you would for property on the mainland.
I would be very cautious about your potential client's requirement to not "partner" with any of the local firms (although there is only one firm listed as being based in the USVI per the AI's website... not to say that there aren't any others either affiliated with another organization or non-affiliated). A helpful measure of obtaining competency is to consult with local professionals in the area who know the market. While I certainly understand the client's request (which is likely due to confidentiality issues for whatever he/she/they is/are trying to do), it could be viewed as an unacceptable assignment condition (unless you were adequately able to obtain competency without "partnering" with a local firm). I would clarify exactly what your client means by the request. If you "partnered" with another firm located in Florida but who had extensive experience in the USVI, I would imagine that you're technically honoring your client's request (as Florida is not "local" to the USVI) but the requirement could be, and is most likely to be, more stringent than that. Give heavy consideration to this paragraph.
Property transaction verification could be (or might not be) dramatically different than where you are located. That would certainly present an interesting challenge. For instance, do you know if the USVI is a non-disclosure territory? Talk to the fine folks here on the Forum who live in such states... I've read about their trials and tribulations with confirming data.
The currency in the USVI is the USD. However, during your sales confirmation, you may find that the buyer was from a different country and paid using their currency. You would need to verify that as well as the exchange rate on the date of sale to determine the purchase price in USD.
As far as bidding goes, having never bid an assignment anywhere except for the three US states that I cover, I am probably not the best equipped to answer your question. However, just like any assignment, you would have to consider the time necessary to perform the assignment as well as any time necessary to become competent to provide the valuation (which may well exceed the time to actually perform the valuation!). Clearly, travel costs would have to be factored into the equation (flight, hotel, meals, etc). If this is for any litigation purposes, then I would certainly put a provision in my engagement letter indicating an hourly fee, a minimum time for any court-related appearance, and any other necessary fees associated with potential litigation work (trial prep, etc). Again, not knowing the intended use hampers my response but I can always attempt to give further guidance upon finding out that answer.
Having said that, as I look out my office window in SE Pennsylvania knowing that it is 35 degrees and MORE snow (although not a lot) is in the forecast for tomorrow, you can imagine that I have a minor level of envy that you have the chance to bid a job in a tropical climate. :icon_mrgreen: These things can be IMMENSELY good learning experiences; however, there are an enormous amount of possible pitfalls to examine before thrusting yourself into such an assignment.
Hopefully you find some use out of this response. I wish you the best of luck!!!
