Appraising life estate

[CANative]

Webb... He said "worth" not market value. If a client wants to know the paper "worth" of something then "theories" would be appropriate. Wouldn't they?

 

[Louis Pompeo]

I work for an outfit that values Life Estates all over the world - if not on a daily basis, then a weekly basis.
There are 100's of scenario's that require the valuation of a life estate.
Even when a life estate sells, it is NOT considered a comparable for consideration in another life estate valuation assignment.

Therefore, after many years of Life Estate Valuation trials in the courts, as well as trying to provide fair compensation in the many legitimate life estate purchases that take place every day - the case study that is provided in this thread is presented (and recognized) as the mainstream and accepted method of valuation for these Real Estate Interests.

Anyone who argues otherwise, without providing a more fair and credible method sounds like an obnoxious drunk at a wedding.

 

[Webbed Feet]

Webb... He said "worth" not market value. If a client wants to know the paper "worth" of something then "theories" would be appropriate. Wouldn't they?

So why did not he start with "Fee Simple Worth" in that case?

Just a thought..

 

[Webbed Feet]

<.....snip.....>

Anyone who argues otherwise, without providing a more fair and credible method sounds like an obnoxious drunk at a wedding.

Anyone that immediately comes back with something like that the very first moment anyone else dares to suggest there may be credibility issues, probably can't defend their method beyond .. "Golly Mom! But all the OTHER kids do it!" or "Shucks honey! I've done it thousands of times and nuttn ain't happened yet!"

It's called avoidance by immediately disparaging the other person versus actually knowing an answer to the counter argument. Probably brought on by never having questioned the status quo once in life and surprised by someone that can or does. Typically, such people just can't bring themselves to adimit the method they've been using just stinks, only so far it is all anyone can figure out for use. Therefore, why engage in a topic regarding the obvious weaknesses of a stinko approach? Why bother trying to improve it via some debate when it's OOOOOH so much easier to just fire up a nice disparaging comment instead?

I'm only surprised that the first person that asked why everybody was living in caves survived long enough to make a difference.... But how would I know? Maybe you're right, maybe the first fifty people that asked that out loud were all killed right off....

 

[Hamlet]

I'm only surprised that the first person that asked why everybody was living in caves survived long enough to make a difference.... But how would I know? Maybe you're right, maybe the first fifty people that asked that out loud were all killed right off....

Oh, come now! I bet it was way more than fifty. I mean, every man's cave is his castle. First lesson in customer relations in Real Estate, we all know that!

 

[Webbed Feet]

Heresy!

Oh, come now! I bet it was way more than fifty. I mean, every man's cave is his castle. First lesson in customer relations in Real Estate, we all know that!

I forgot. Your're very right. Heresy! Heresy! ... Normally, mankind kills off thousands in these cases before society is ready for any change.

I stand corrected!

 

[Mr Rex]

I'm just surprised he didn't point out that naysayers most obviously lacked a designation from a recognized professional organization. Instead he brushed them aside as obnoxious drunk wedding guests, or maybe crashers.:new_all_coholic:

 

[Calvin the Airedale]

OK, I'll bite. Pray tell oh Webbed one, what alternate methods would you suggest for valuing a life estate?

Not comfortable guessing about the future? How is that possible? Every purchase of almost every long lived asset is a guess about the future. One of the most elegant and succinct definitions of value is "the present worth of future benefits." (I'm not sure who coined this definition but I always attribute it to Bill Kinnard.)

I also disagree that the nature of the remainder and life estate are essentially different. In essense they are merely a division of the right to use and enjoy the property. The life estate is that of a specified period (from now until some point in the future, that point triggered by the demise of someone or something). The remainder estate is that of the period into perpetuity and that lies just beyond that of the period defined by death of the holder of the life estate.

There's a whole industry built on the premise that such events are predictable: insurance.

That said, I'm off to get my popcorn.

 

[edward sekerak]

I work for an outfit that values Life Estates all over the world - if not on a daily basis, then a weekly basis.

What is the name of the "outfit"?

 

[Calvin the Airedale]

What is the name of the "outfit"?

Someone might tell you were you only set up to receive emails or PMs.