Damage appraisal

[NJ John]

I own a rental property in northern NJ that was severely damaged by the installation of sewers 8 years ago in my town. My accountant has informed me that I need a Fair market certified evaluation for the IRS. I have contacted four appraisers in my area who have informed me that they cannot show how much damage I have because there is no software for landscaping. Over the last year I have had over 50 contractors to give me a estimate to repair the damage, but none are interested at any price. It is a unique property on the lake and very steep with no access for machinery to get to the damage. My question is is there any other way to get a price estimate for the damage for the appraiser. The IRS is going to hit me with capital gains on the money I received from the law suit if I can't show a loss.

 

[smallface]

Is the damage limited to landscaping? I've done several appraisals that went to the IRS where offsite grading changes caused landslides and landscaping damage.

 

[hastalavista]

I would say there are appraisers who have the resources to credibly estimate the cost of the repair and the impact it may have on value. My recommendation is to find appraisers who specialize in litigation work; if they cannot do it themselves, they may know another who can.

Also, you may have to hire a landscape architect or contractor and pay for an estimate. They may not be interested in the job, and therefore won't do the necessary steps to give a free estimate. But, if you pay them for their time, they may be willing to give you an estimate. I'd budget $500 (5 hours x $100) and see where that goes.

Good luck!


(If presented with this problem in my market, I could do it. But I'd tell you that either you need to give me a qualified estimate, or you'll have to pay me to get the estimate for you outside of the fee for the appraisal. All I'd do is interview and hire a landscape architect and add 15% to their fee to manage the process; it would be transparent, so you'd know exactly what you are paying for. In fact, my recommendation would be to let me do it; not because I want to earn the extra 15%, but because I'm going to make sure that I hire someone who I know for sure I can rely upon in terms of the estimate. You may hire and pay for something, and it may not be what I need or would require. Like I said, good luck!)

 

[Rick Kulman]

"...four appraisers in my area who have informed me that they cannot show how much damage I have because there is no software for landscaping.

Why is landscaping software necessary? The damage may be of such a nature that a simple repair will NOT restore the property to its prior undamaged market value. What affect have the sewer lines had on the property? Where are they situated on the site and are they buried or exposed?

Was the law suit an eminent domain (condemnation) action or was it a physical damage claim?

What type of property is it -- residential, commercial or industrial? Many questions remain unanswered.

Are the appraisers and contractors you spoke with capable of handling this type of assignment?

I'd like to talk to you about this and perhaps give you some referrals if we can't be of assistance. Send me a private message with your contact info.

I can be reached at 732-636-7474

 

[NJ John]

It's a residential property with 2 houses on it.
The sewer line runs between the houses and is buried.
It was a physical damage claim against the contractor, the town is immune.
The appraisers advertised damaged property appraisers and some of the contractors were quite large, no way to get equipment down the property so its all going to have to be done by hand and liability were their concerns

 

[The Warrior Monk]

See your email for a recommendation. Best of luck!