Date of Death Appraisal

[kpost16]

Is there a certain form I should be using for a date of death appraisal?

 

[Workbox]

Is there a certain form I should be using for a date of death appraisal?

You must be doing a reverse mortgage. Checked my software for "Death", nothing. I would just scan the certification to your software addendum.

 

[Michigan CG]

General Purpose form, not 1004.

 

[Dirty Harry]

You must be doing a reverse mortgage. Checked my software for "Death", nothing. I would just scan the certification to your software addendum.

Yep, I hear they are doing reverse mortgages for dead people now. It's the new sub-prime! :Eyecrazy:

Sounds more like an appraisal for estate purposes. Whats wrong with using the old 1004?

 

[Doug Meyer]

Old 1004 is a fannie form. Use the general forms for non lending work.

 

[kpost16]

Correct it is for an estate. I got the same mixed response when I asked some local appraisers in regards to which form to use.

 

[jay trotta]

GPAR-Format

it should be in your software package; read thru it, fill in the blanks, be sure to use a graph of some sort (seems to be the new craze); perhaps a traffic count, so you can be one step ahead of the graph people and be sure to note how many coffee shops are in the area, again so that you can provide Your pesonalized one upsmanship of the Graph people.

you can sea how much I envy those Graph people........ROFL

 

[Richard Carlsen]

It sounds like you are doing a private for estate purposes where the opinion of value is as of the date of death of the owner. Correct?

OK. Ask yourself some basic questions about the assignment.

What do you have? A non-lending determination appraisal for estate settlement purposes as of the date of death of the owner.

What are the clients needs? A valuation as of the date of the death for the owner done by a licensed appraiser.

What has the client indicated that they need in the way of reporting of the opinion of value. If no reporting requirements are made, then a Summary Reporting is the default requirement. If the client says that all they need is the number, then you could report the results of the analysis in a letter form in a Restricted Use Appraisal report as long as the client specifically agrees to receive the results of the assignment in this form.

If a Summary Reporting is required, what form should you use? Since the FNMA 1004 and 2055 are for lending consideration only, you either have to negate the pre-printed restrictions found in the form with additional Assumptions and Limiting Conditions or use a General Purpose form which is not for lending consideration unless specifically so noted in the report. The problem with using the FNMA forms is that if the estate decides to sell to an individual, there is the chance that they will attempt to use the report for lending purposes which is not the Intended Use by the Intended User. Putting it on a general purpose form cuts that off at the pass.

 

[PropertyEconomics]

One of the major reasons not to use Fannie forms is the definition of value is different in estates than it is in mortgage transactions.
The IRS has a definition of "fair market value" used in estate purposes that you should be using and will be required if this is for estate tax purposes.
Also be sure to check with your client and make sure your assignment is as of the date of death and not as of the alternative date of valuation, which is exactly 6 months after the date of death. The entire estate must be valued as of the same date. Typically the date of death is the effective date of your report, but its always good to check with your client just in case.
I agree with the others that a general purpose form should be use so as to not create any confusion as to exactly what your assignment is. Again make sure to use the definition of "fair market value" as established by the IRS. It is most probable your value conclusion will be the same as though under the definition of "market value" but there are subtle differences you should know about as well as citing the right definition within your report.

Best of luck.

 

[PropertyEconomics]

You must be doing a reverse mortgage. Checked my software for "Death", nothing. I would just scan the certification to your software addendum.

Hard night last night Work? :Eyecrazy: