Retrospective appraisal problems

[alebrewer]

Maybe you owe him the courtesy of a payment first.

To your electrician point - I wouldn't pay an electrician until the services rendered were in accordance with electrical code. In this case, the 'code' is USPAP. If it's a deficient report, that should be remedied and, if the appraiser is a flake, there's no guarantee it will if the client sends payment. MUCH better solution would be to meet up TOGETHER to (a) make payment, and (b) resolve appraisal deficiencies.

 

[J Grant]

Actually he has been MIA... has not provided any answers.

You attributed above wrong ( #29- different poster )

Let me guess this is not the first time.. is there a trail of disputed bills in your dealings over the years? People are usually consistent in their actions.

 

[phoebega]

I would be very careful about that line of thought, Phoebega. Unlike appraisers, Realtors are not held to any objective standard when it comes to the offering of price opinions. She may well be familiar with your market, but she has a LOT more latitude when offering her opinion on what the value of a home might be. Appraisers, on the other hand, are restricted to applying recognized methodologies and techniques which result in credible analysis, opinions, and conclusions.

The appraiser noted in his report there are no close comparables. I understand your point about being held to objective standards but in this situation if the appraiser pulled numbers out of thin air because of lack of market data, and because this is a retrospective appraisal, I value the realtor's opinion regarding a preserve view premium and recommended listing price. The market will let me know whether she's right...in which case for tax purposes I may need to revisit the retrospective appraisal issue again. Thank you for your comments.

 

[phoebega]

You attributed above wrong ( #29- different poster )

Let me guess this is not the first time.. is there a trail of disputed bills in your dealings over the years? People are usually consistent in their actions.

You seem nice.

 

[J Grant]

You seem nice.

I am very nice - just do not like deadbeats. You are not jumping at Alebrewer's suggestion to meet with appraiser and pay and get questions answered at the meeting....good luck r

 

[J Grant]

To your electrician point - I wouldn't pay an electrician until the services rendered were in accordance with electrical code. In this case, the 'code' is USPAP. If it's a deficient report, that should be remedied and, if the appraiser is a flake, there's no guarantee it will if the client sends payment. MUCH better solution would be to meet up TOGETHER to (a) make payment, and (b) resolve appraisal deficiencies.

He's not taking up your meet up and pay at meeting suggestion...lol

I paid electrician, then later days or weeks permit people from county come for code compliance.

 

[Terrel L. Shields]

I would never hire an appraiser who demanded payment in advance,

Some us require a retainer because of so many deadbeat clients...and that includes an awful lot of private parties since the banks are normally regulated.

As trustee I have a fiduciary obligation to minimize taxes to the extent I'm able

You also have some obligation to protect yourself if you have other heirs to contend with. Certainly an inflated value may minimize taxes but also risks the ire of the IRS, although it normally isn't a large enough estate for them to question much of anything...but they can and sometimes do. Gifting or estate taxes are different from a cost basis. I repeat, protect yourself and if you lack confidence in what he has done, get a second opinion or hire a review of the original report, or both. And if serious errors, turn the report into the state board. As for the ...

...preserve view adjustment is simply an opinion based on experience and not a calculated figure based on data, why not say that? I asked him to describe the methodology and provide supporting data, but he has not done so.

Question. Is it your opinion this "view" should be quantified differently? I am loathe to adjust for "view". Since I treat it as an attribute of the LAND, and will address the value within the LAND, since the view does not relate to the buildings (is the view different from a 1200 SF MH than from a 2500 SF house?) I tend to find land comps that are similar. I don't know the appraisers mindset. I do know I have spent time with clients explaining my methods and I cannot recall when I've had a client not understand my methodology if I take the time to explain it...and I do take that time. I don't trust your appraiser as you describe him and wouldn't hesitate to tell the Appraisal Institute what you said about.

indicated properties in the neighborhood fetch a $25,000 premium

so is that due to the value of the SITE or the value of the BUILDINGS? Such premiums in my reports would be embedded in the land value. Did they address the value of the site anywhere or only do a Sales Approach?

 

[Elliott]

Pho,

What I don't understand is that you requested a retro appraisal for Income Tax purpose, yet you seem to expect it to be a current marketing appraisal. Perhaps you could explain.

Since you said,

"The appraisal is dated Sept 2018. " In two days it will be 2020.

I'm curious why making a larger adjustment would benefit your position as a fiduciary in minimizing Income Tax? Especially since you have experience as a financial analyst.

"...it seems in this price range the preserve view adjustment should be $25,000."

Why would you suspect the appraiser "backed into a value" ? (Adjustments are made to comparable to make them "similar" to the subject)

"For a couple of different reasons I also strongly suspect the appraiser decided on value, then manipulated adjustments to back the comparables into it. I have a background in corporate financial analysis and planning and understand how financial projections can be manipulated. Maybe backing into a predetermined appraisal value is something that's commonly done, I don't know. But does not seem ethical to me. "

Why would this be relevant to a value based on September 2018?

"I have confidence in the opinion of the realtor I searched out in December. "

"Next door neighbor on the opposite side is a real estate investor and approached me right after my mother passed away, but dropped out when he realized it was not going to be a bargain sale."

"3 people have already approached me (via neighbors) about buying, so hoping I may be able to do a FSBO. "

Not trying to be vicious, just logical.

 

[bnmappraisal]

The appraiser noted in his report there are no close comparables. I understand your point about being held to objective standards but in this situation if the appraiser pulled numbers out of thin air because of lack of market data, and because this is a retrospective appraisal, I value the realtor's opinion regarding a preserve view premium and recommended listing price. The market will let me know whether she's right...in which case for tax purposes I may need to revisit the retrospective appraisal issue again. Thank you for your comments.

Since it seems you believe the appraiser pulled numbers out of thin air for the view adjustment, I would ask your Realtor where they came up with the $25k view adjustment opinion

I hope the answer isn't just "Well, because I've been doing this for 30 yrs so...."

And if they have any sort of sales to back it up, I would offer that to your appraiser to consider

 

[phoebega]

I am very nice - just do not like deadbeats. You are not jumping at Alebrewer's suggestion to meet with appraiser and pay and get questions answered at the meeting....good luck r

I am not a "deadbeat", thank you very much. I would have paid him right away if he had the courtesy to respond to my questions without my having to poke him repeatedly with emails, asking the same questions multiple times. The replies he eventually provided were deflections and he still hasn't answered the questions. I am back in my home state (do not live in FL) therefore emails vs meeting in person.