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Appraising For An Estate?

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GroundSwell

Sophomore Member
Joined
Apr 6, 2003
Professional Status
Certified General Appraiser
State
California
I was recently contacted by an individual who wanted me to appraise a property for his Grandfather's Estate. Apparently he passed away, and he needed to have an appraisal done on the property for tax purposes etc. All of the appraisals that I have done in that past have been for motgages, so this is entirely new to me. Has anyone ever done this before? If so... how did you change your addendum around? (Intended user, etc.)

Any info would be great, and if you have some examples that would be even better. Thanks in advance.
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
There was jsut a good thread about this. Look down a few topics and you should find it.
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I have done a few. I simply change the scope to suit the assignment and any special considerations there maybe (if any).

State the who the client is, usually the Estate.

I make sure I understand what and who is going to see the Rport and then clearly state the intended use of the Report.

Pretty straightforward in most cases.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
I agree, they're pretty straightforward. However, you may run into condition issues. Many estate properties are not prepped for sale and need updating/carpet/paint/etc which can significantly affect value.

Roger
 

C. Kevin Bokoske MAI

Junior Member
Joined
Jan 30, 2002
Professional Status
Certified General Appraiser
State
Florida
One difference between estate appraisals and mortgage underwriting appraisals is that the effective date of value is usually the date of demise, not the date you inspected the property. As a rule, you should look carefully at any comp sales that took place after the date of death. If they closed too long after the d.o.d., they probably should be avoided if others are available that closed prior to the d.o.d.

Kevin
 

Oregon Doug

Senior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
Oregon
RJ - these are pretty straight forward - just remember that the date of the appraisal is the date of death and not the date of inspection. Sometimes they also want a current value estimate if the estate is going to sell the property.

Oregon Doug
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Ask the client.

About 50% of the estate work I have done has been as of the date of inspection. I always query the isntruction to make sure, but so it has always been. Different courts have different rules. IRS has a whole nother set.

make sure you make it as instructed.
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
I would NOT do it on a form report (i.e. 2055, 1004, 1025) but rather do it as a narrative. This then prevents them from taking it to a lender when they sell or take a loan against it to pay the back taxes owed by grandpa. AND it limits your LIABILITY!!!!!! Really narratives are easy once you get them set up in word, and allow for alot more flexability like all the other approaches to value not used on the form reports or the elimination of certain approaches to value where appropiate.
 

bradellis

Member
Joined
Jan 16, 2002
Frederick,

Assuming the guy did pass away, this is almost certainly a retrospective appraisal as of date of demise. Ask your client what they need.

I used to do a ton of estate work. Never had a deceased person's estate that did not need the effective date as of date of demise, just as Kevin said. Just remember that date ends your market data (except perhaps for data that would confirm a trend already in place as of that earlier date).

That said, find out what kind of estate work this is. If the guy is alive, it could be a QPRT which would require a current date.

Brad Ellis, IFA, RAA
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Only to add that i would use a narrative format. The URAR is a bank oriented form, ditto for the certification. That's one reason. The other is that 6 mo. down the road, no one is going to call you up wanting you to "Update" the report for Jr. (or whoever ends up with the property) who is now borrowing money against the place.


Updating (i.e.-altering) an existing estate appraisal done on a URAR to a mortgage compliance document will insure that there will be numerous inconsistencies and errors embedded in the report.
 
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