Divorce Appraisal tesimony

[Lee Lansford]

So it is ok for a judge to make a value opinion, which is an appraisal, in a state I assume he holds no appraisal license in a court of law? How does he know it was not $120,000 or $130,000? Or maybe it was $123,000. How is he qualified to say either way? What did he base his number on and did he see the home, comparable sales, speak to realtors, etc.?

Why does my state force me to be a trainee for 2-4 years, take and pass a Cert test, pay fees to obtain and maintain that Cert, and pay and take CE every other year just to do the same thing?

Become a judge and you, too, can offer opinions without benefit of an appraiser's license.



Seriously.

 

[Delta85]

Become a judge and you, too, can offer opinions without benefit of an appraiser's license.



Seriously.

Yeah I guess so. I was gonna go to the doctor to have a wart looked at. I wanted to rule out cancer. Maybe I'll just go see a judge and have him make a ruling. And while he's at it I'll ask him to translate some ancient Chinese scrolls I found up in my attic. Why not. He's a judge.

 

[Joyce Potts]

Anyone can have an opinion of value. Homeowners, Realtors, neighbors and Judges -- especially when they're being called upon to render a final decision in a court case with regard to a valuation and whom to believe. The Judge can rely on a Realtor for a valuation if he wants to -- just had it happen a few weeks ago BEFORE hearing any expert witness testimony. The party that hired me ended up paying my fee for the entire day for virtually nothing. The Judge lost his temper and basically told both parties to the Dissolution proceeding to give him three names of local Realtors and to get CMA's.

I'll refrain from further comment as to why I think he did it. And so it goes.

 

[Delta85]

From what I understand in this thread the judge saw two appraised values, one for $120,000 and one for $130,000 and called it $125,000. It's one thing if he sides with one report or the other, that I understand, but he made his own number up out of nowhere. I know I am nit picking as it is only a $5,000 difference but for a property only worth $120-130K $5,000 might be a big deal value wise. What if he said $140,000? Or $110,000? At what point is he wrong?

Eh, forgive me for ranting again. I'm just sitting here looking at my license I worked so hard to get and that costs so much to maintain and I am thinking about how much trouble I could get in doing the same thing the judge did without a license. Look at the evil comp check request. Just a heads up to a client based on looking at some sales is an appraisal and we have to have a complete file to back it up.

 

[Joyce Potts]

From what I understand in this thread the judge saw two appraised values, one for $120,000 and one for $130,000 and called it $125,000. It's one thing if he sides with one report or the other, that I understand, but he made his own number up out of nowhere. I know I am nit picking as it is only a $5,000 difference but for a property only worth $120-130K $5,000 might be a big deal value wise. What if he said $140,000? Or $110,000? At what point is he wrong?

Eh, forgive me for ranting again. I'm just sitting here looking at my license I worked so hard to get and that costs so much to maintain and I am thinking about how much trouble I could get in doing the same thing the judge did without a license. Look at the evil comp check request. Just a heads up to a client based on looking at some sales is an appraisal and we have to have a complete file to back it up.

And therein lies the difference between a law degree and passing the bar exam vs. the ticket you chose to pursue.

The judge isn't determining the value from scratch. He's simply making a judgment call based on two appraisals that are different. Much like a lender deciding on a jumbo loan where there were two appraisals or deciding what the buy-out offer is based on two relocation appraisals -- And frankly a $5,000 difference in that price range is pretty damn close, IMO.

 

[Delta85]

And therein lies the difference between a law degree and passing the bar exam vs. the ticket you chose to pursue.

The judge isn't determining the value from scratch. He's simply making a judgment call based on two appraisals that are different. Much like a lender deciding on a jumbo loan where there were two appraisals or deciding what the buy-out offer is based on two relocation appraisals -- And frankly a $5,000 difference in that price range is pretty damn close, IMO.

I understand all that. It's actually not me though, the state makes a big deal out of "that ticket I chose to pursue". The state is the one that puts such weight on an appraisal license and what can and can not be done with and without one. Several years as trainee and education are required and then a considerable amount of money to obtain and maintain the right to make a value opinion. Like I mentioned before, if I did a favor for a client and looked at a handful of sales and gave them a quick heads up on potential value (the evil comp check) it's looked upon as an appraisal by the state and I need to have a complete file on hand backing up everything I said researched, analyzed, and verified.

And you are right, $5,000 is not a huge difference. So the next time I am appraising a home with comps ranging from $120,000-$130,000 rather than dig deep and collect as much data as I can on the subject, comps, neighborhood, and market conditions and then verify and analyze it all I'll just call it $125,000. I'll also skip measuring the home and just use MLS photos for the comps. I just did as much work, if not more, than the judge and it's just a $5,000 difference. It sure will speed up my report process and allow for a higher volume of reports.

 

[Pittsburgh Pete]

And what's up with that Supreme Court? Who do they think they are making decisions that affect the whole country and all they have are stinkin' law degrees?! They rule on interstate commerce, federal legislation, etc. Seriously!!

 

[Mr Rex]

I guess they need an Appraiser and his peers on the Supreme Court. The peers he is often compared to on the AF, plumbers, mechanics, doctors, etc should also be represented.

Would you like some cheese with that whine?

 

[Delta85]

I'm really not trying to be a wiseguy. And again I am not comparing being an appraiser with the status of being a judge or even an attorney.

But, at what point at Harvard law do they teach you how to extract adjustments from market reaction, complete and analyze the income and cost approach, analyze and interpret market conditions data, and understand what is and is not considered USPAP and/or Fannie/Freddie compliant reporting? I guess none of that matters and they can just make an opinion like so many borrowers and homeowners do every day when they complain our reports "came in too low".

Would a lawyer or judge look at the work of two electricians and decide which one he believed was more reliable when the case involved complicated details being debated by both parties? Or would he call in a third expert in the electric field to review both and give an opinion on which was less safe?

 

[Mr Rex]

He has 2 expert opinions. If neither appears or is proven superior to the other, $125k is a reasonable reconciliation.