Divorce Appraisal tesimony

[Leon Marcus]

I looked all over this forum and could not find anything about this so....
I have done a few appraisals for divorce in the past. I never had to go to court as all were uncontested. I have been getting more calls for them and I am sure sooner or later I will have to go to testify.
My question is for those that actually do appear in court for divorce appraisals, how do you determine what you will be paid for that testimony? Do you charge up front as if you will go or agree ahead of time your fees if you do go to court? I always tell the client that I will not appear in court unless they tell me before I start the work. I have them sign a statement to this fact. Once I was subpoenaed and was told I would get a whopping $17.00 a day for appearing. I called them and had them look at the agreement and the appraisal both of which said I would not appear and if I was forced to appear I would be paid a specific fee per day before I appear. I guess the fee they agreed on was too high so they called back and told me to ignore the subpoena and I was not needed. They had two other appraisers that also appraised the same house for the same reason and I guess used them for $17.00.
Do you appraisers that do go to court base the fees paid to you on the possibility of losing 1 or 2 reports per day and charge as if you lose 1 or 2 reports?? Or do you get that generous $17.00?

 

[Lee Lansford]

The fee for the contingency for appearing in court (or, a deposition etc.) is spelled-out in the "letter of agreement" which is signed by my client prior to my performance.

Anything and everything associated with my appraisal and where I would be legally obligated to comply is something for which I am due a certain fee for my appearance and perfomance. Further, if the client (or, the client's attorney as the agent for my client) makes a request (vs. a legal obligation) for my service beyond that of the appraisal, my further work is at a previously agreed upon fee (hourly or whatever).

 

[The Warrior Monk]

As usual, Lee provided great advice.

In my own case, I typically charge by the half day, rather than the hour. That time also includes travel time. For example, if I have to travel to NY City to testify, my whole day is shot, even if I only testify for one hour. In that case, I charge for the whole day.

 

[stangtime]

Several years ago I was wrapped up in a nasty divorce appraisal deal. I did about eight or nine appraisals for the wife's side. When I was told to report to court on a certain day we set an hourly fee for me to review all of my appraisals before court and to review all of the other side's appraisals. I think we charged somewhere between $75 and $100 an hour for prep work. On the day of trial I got to court early and waited. While I was waiting outside the case was settled. Apparently the husband was messing around and didn't want his exploits on the public record.

So in the end we got around a grand for reviewing some really bad appraisals from the other side. Maybe they thought ours were bad too. Anyhow, didn't have to testify that day.

Dan

 

[vanguard]

Try the following on an engagement letter and/or in your report:

In the event the appraiser(s) is/are required or requested to give testimony or appear in court because he/she performed an appraisal of the property in question, a $2,500 retainer will be required from the client for each appraiser before appearing or giving testimony, and the balance of the retainer will be drawn (from) at a rate of $250.00 per hour for each appraiser appearing in court or giving testimony. When balance on the retainer is less than $250.00, another $2,500.00 retainer will be required before the appraiser continues to give testimony or appear in court. Any unused portion of the retainer will be returned to the client within 15 days of receiving a request from the client to return the funds.

 

[incognito]

More than anything it is a scope issue. More than anything, make sure your requirements for testimony are spelled out in your letter of transmittal in your appraisal report, as well as your original engagement agreement..

I charge $200/hr, which includes prep. time (minimum 1 hour), travel time to and from office to courthouse, and waiting time. You MUST establish a high but fair price for your time. Very rarely will you get more than 48 hours notice for court testimony, which means canceling appointments, and late nights meeting other commitments.

However, you MUST be worth it. You must have experience and training in court testimony, or no matter how good your appraisal may be, some scumbag attorney will make you look the fool!

Lastly, if you want to be viewed as a professional appraiser doing "divorce" appraisals, you must learn that you are doing "dissolution of marriage" appraisals. Always use that terminology.

Demand a 3 hour minimum pre-paid retainer, and have a contract.

 

[incognito]

While I was waiting outside the case was settled.

9 out of 10 cases that go to trial are resolved (real estate value issues) just prior to the hearing. That is why you MUST get prep, travel, and waiting time paid!! I just love it when I show up, the opposing attorney disposes me, and consults with his/her client, and come back and state they no longer need me. Cha Ching... My calendar is clear for at least 3 hours, and that means a nap at home, fishing or surfing, all paid for fairly by that retainer.

 

[Michigan CG]

More than anything it is a scope issue. More than anything, make sure your requirements for testimony are spelled out in your letter of transmittal in your appraisal report, as well as your original engagement agreement..

I charge $200/hr, which includes prep. time (minimum 1 hour), travel time to and from office to courthouse, and waiting time. You MUST establish a high but fair price for your time. Very rarely will you get more than 48 hours notice for court testimony, which means canceling appointments, and late nights meeting other commitments.

However, you MUST be worth it. You must have experience and training in court testimony, or no matter how good your appraisal may be, some scumbag attorney will make you look the fool!

Lastly, if you want to be viewed as a professional appraiser doing "divorce" appraisals, you must learn that you are doing "dissolution of marriage" appraisals. Always use that terminology.

Demand a 3 hour minimum pre-paid retainer, and have a contract.

Invisible guy spells it out perfectly. There must be an engagement letter that is signed. This means you have a contract.

I can't charge $200/hour for residential divorce here, I charge $150/hour. When you charge that rate you need to make sure that the reports are solid with everything justified.

Divorce very rarely goes to court, but when it does it is WAR and you need to be very solid. If you can't justify what you have reported or are facing the local expert it will be hard to swallow a lesson learned the hard way.

 

[Leon Marcus]

Thanks for all the help!
I always do have an engagement letter that spells out everything we agree and don't agree on, fees and time required for the work etc. I am not looking to gouge anyone for my time or service. I just want a fair fee. So far all attorneys I have worked with want nothing less than an honest report and don't do or say anything to sway my opinion of value. In turn I want to be fair to them and myself. If I ever feel I am being "used" I never take the work.
Thanks again!

 

[Joyce Potts]

Lots of good advice and be sure that if there is another appraisal invovled that you do not get 'trapped' into rendering an oral review without a property workfile and signed certification.