Date Of Death Appraisal Question

[Deleted member 142783]

Completing a retrospective date of death appraisal for estate purposes.

I cam across a thread that is now closed to comment.

Question 1- Can a sale that is 1-2 months after the effective date of the report be used as a comparable ?

1- some say yes
2- most say yes, but include it as a pending/active depending on status on effective date
3- few say no

Any additional responses or strong feelings on the matter?


Question #2. Poster stated

"The respondents are correct in that you can use the post-dated sales. I would not recommend using them exclusively.
I would also suggest strong verification data, especially if its for IRS.

Lastly, perhaps you know this, but if not...you can also ude an "Alternate Date of Valuation" when doing estate work. You can use a date 6 months after the D.O.D."



Can anyone elaborate on this or point me in the direction to further info???



Thanks!

 

[Deleted member 142783]

Something just hit me.

Tell me why I should not include my BEST (by far most similar comparable for a unique property) that closed after the effective date of the report given it went into contract DAYS before the effective date of the report...

Shouldn't we be focused on the contract date not COE date? Really our best sales are the properties in contract closest to the effective date...

 

[alex gilbert]

Take a look at Advisory Opinion 34 in the current USPAP. In particular, the info picking up on line 43 where it talks about the appraiser determining "a logical cut-off date for the data to be used in the analysis." Also see FAQ 145 on pg 278.

 

[Tim The Enchanter]

I see no reason to not use a pending as #4 or 5. I would want 3 closed as of effective date.
I have not done many of these, but was always given a date to use.
You cannot do an appraisal of your own property. You'll be dead!

 

[Deleted member 134708]

If I hired an appraisal (not appraiser), please use it as factually closed on x date. This date happened to be after effective date. That has nothing to do with market value or what an appraisal is hired to do.

Use it and count backward in time. When using dated sales, use them and count forward in time.

Exact same principle of substitution applies to both.

1 sale you travel forward in time to the eff. Date, 1 sale you travel backward in time to the eff. Date.

 

[bnmappraisal]

Completing a retrospective date of death appraisal for estate purposes

Based on your OP I would assume your Intended USE is for a value (market value?) as of a specific DATE (date of death) and therefore the Intended USER (possible litigation purposes? IRS? CPA? etc) is looking for a value (again, presuming market value?) as of that date. I, personally, probably wouldn't use sales after the eff date, especially in the first 3 sales, for this particular Intended Use (date of death).

Question 1- Can a sale that is 1-2 months after the effective date of the report be used as a comparable ?

IMO, 1-2 months is MUCH different than 1-2 days or even weeks after the eff date. IMO, days/weeks may not have any major affect on values, but sometimes months may. Each market is different. I'd be cautious using said comps, but at Nottrav points out, if you do, you can always adjust for time. I'd just advise as using them for additional comps (4+) if at all. Personally, for DOD, I'd most likely only use closed sales prior to/up to the eff date. This isn't for lending purposes and I'm assuming the Int. User(s) want to know the MV as of DOD.
Just my take on the subject

 

[gregb]

Is this a date of death appraisal with an attorney as the client or intended user, with the appraisal used for a filing with the IRS?

 

[Tim The Enchanter]

You may need a Delorean with a functioning flux capacitor.
Charges extra, the rent on those is too damn high.

 

[Elliott]

Depends on the kind of property, the "gap" in the retrospective. Depends on how significant the "change" in the value conclusion is. For estate/tax purposes for a 'date of death' the users/client is different than a lender/GSE. I think you behave in a reasonable manner that uses data to give a defensible value, to be most fair to all, to be as reasonable as a judge. If I'm doing a DOD that is in May 2017, I'm not going to worry about using a June 2017 sale.

 

[bart nathan]

I have used sales that settled/coe after the date of death but the contract/pending date was on or before the date of death. When i do retro appraisals I search MLS about three months past the retro effective date just in case there is some good comps so I make sure I don't miss anything. Sounds like you have a perfect comp.

I make sure I put the exact contract/pending date and settlement dates on my retro appraisals so there isn't any confusion.