Divorce Appraisals

[Justin Gohn]

I am wondering what you folks do for your divorce appraisals.

1.) While a narrative is the best way to go, would you use an ACI GPAR form or a WinTotal AI form?

2.) What intended use statement do you use? I am curious how others craft their wording.

3.) Do you find that the effective date is the date of separation, or date of physical inspection?

4.) What do you do when you review the "other guys" appraisal and it is so bad you really wonder how you will be able to explain to non-appraisers just how bad it is?

Thanks. It is always nice to here what you folks have to say.

 

[Mike Kennedy]

1. GPAR plenty of room for comments plus supplemental pages if needed

2. Divorce Proceedings

3. depends on SOW instructions from the Client to establish Effective Date of Valuation; could be current or retrospective. (could be both - appraisals)

4. Supplemental Review Assignment - supplemental fee.

 

[Lee Lansford]

When you comment regarding your "review" of the other appraisal, do you mean that you have accepted an assignment from your client to complete a Std. Rule 3 review of that appraisal? OR, do you mean that you have "perused" the other appraisal and want to comment on it? There is a big difference between the two.

If you critique the work of another and communicate your critque, you are obligated to adhere to Std. Rule 3.

Contrast this with (for example) your court appearance and the attorney for your client (??perhaps the attorney is your client, I don't know??) asking you to indicate the differences between your appraisal and the other. For example: "I measured the Subject improvements and the house contains 2200 sf of GLA; the other appraisal has the GLA as 3300 sf, but that figure includes the 1100 sf basement. Further, Comp #1, per the MLS and my conversation with the listing Realtor, has three full bathrooms and I report that number; the other appraisal reports the presence of but two full bathrooms."
I suspect that you get the idea. In the second instance, you are merely pointing out the differences between the two appraisals--and not offering any opinions regarding the quality of the other appraisal. In this instance, you are not providing a "review" subject to Std. Rule 3.

 

[Brian Weaver]

I never use forms for ANY litigation work. And yes, the narrative is the bast way to go for no other reason then you control the content.

As for intended use? Its for a marital dissolution or divorce or marital partition...whatever you want to call it. I think the judge can figure it out.

The effective date is the day you last inspected the property. However, you may have a case where the attorney will give you a range of dates or some other date...just follow your instructions. They do law. You do appraisal. They have their reasons.

As for "reviewing" the other report...what do you mean? As Lee stated...are we talking a Standard 3? Are you providing something less? Something more? If you can't explain what's right and what's wrong with a report so that a lay person can understand it...then don't get involved. I can't imagine what's so hard about saying "the other appraiser's third comp wasn't as large as was stated" or whatever the problem is. I'm not sure what you mean by "can't explain".

 

[Terrel L. Shields]

1.) While a narrative is the best way to go, would you use an ACI GPAR form or a WinTotal AI form?

no.

2.) What intended use statement do you use? I am curious how others craft their wording.

for marital estate planning.

3.) Do you find that the effective date is the date of separation, or date of physical inspection?

i prefer the effective date....but whatever date the attorney asks for.

4.) What do you do when you review the "other guys" appraisal and it is so bad you really wonder how you will be able to explain to non-appraisers just how bad it is?

I do not agree that looking at someone else's report and providing information to the attorney requires a Std. 3 report. In fact, I don't think Std. 3 is applicable in all but the rarest instances to anything but lending decisions by financial institutions. You are checking the USPAP compliance or accuracy. In this case, you are giving the attorney ammo to impeach the other side, therefore you are consulting, not reviewing and your report is a consultation which meets Std 4 to begin with. Virtually all appraisals contain an element of consultation.
The problem is not explaining to others. The problem is to get the lawyer to ask the 'right' questions and phrase them correctly. I spent 2 days with a lawyer and couldn't even teach her to call it the MLS instead of the MSL...We (another appraiser and i) went to lunch and spent the hour coaching her on questions for her to ask from idiotic statements the appraiser made. She didn't ask any of those, claimed the judge was getting antsy and she needed to hurry it up....they all but won. At least the state has not been so charitable to the ba^%*&d. He's getting the grilling from them now.

 

[Mike Kennedy]

Sr3

When you comment regarding your "review" of the other appraisal, do you mean that you have accepted an assignment from your client to complete a Std. Rule 3 review of that appraisal?

Yes - FULL REVIEW.

 

[DonRico]

Just Curious

In order to stimulate this discussion.............

What is the compelling reason to use the AI forms?
I'm now looking at the WinTOTAL version of AI form 100.02 dated 03/01/06.
That's the one being recommended here, right?

It appears to hold all the relevant data, just displayed in different places.

The Subject's Above Grade and Below Grade Improvements are expanded.

The Cost Approach has an expanded Site Valuation.

There's a major portion devoted to the Income Approach with a grid for rentals, and a section for expounding on GRM. For a SF Residential Dwelling?

The sales comp grid appears to have the same fields.

But, on page 2 there exists a section for Hypothetical Conditions and Extraordinary Assumptions. You had better get those two correct, with a poorly stated HC or EA, you could get yourself in trouble.


On this thread, the most compelling reason so far for using the AI forms with lots of narrative is that an opposing attorney would dissect the 1004 form and use any inconsistencies against you on the stand.

But why take the reporting writing out of the mainstream process with an unfamiliar form?
Wouldn't the appraiser be better served using the 1004 with well-crafted scope of work and a relevant addenda section?

I'm just asking.....

 

[Marcia Langley]

Don,

The new 1004 form is for lending purposes, ONLY and is not supposed to be modified. The old 1004 can be modified but was still designed for lending.

The AI forms and the other generic forms allow you to make the report match your scope of work without having to modify the pre-printed portions.

 

[The Warrior Monk]

I1.) While a narrative is the best way to go, would you use an ACI GPAR form or a WinTotal AI form?

Nope.

Also, if you decide to use a grid, make sure that you have support for every single adjustment that was made.

3.) Do you find that the effective date is the date of separation, or date of physical inspection?

Ask the attorney.

Many times multiple dates of value are needed for divorce appraisals. Often times I will have to do an appraisal as of the date of marriage, and a current (date of inspection) value.

4.) What do you do when you review the "other guys" appraisal and it is so bad you really wonder how you will be able to explain to non-appraisers just how bad it is?

Stick strictly with the facts.

I always assume that the attorney is not sophistocated in matters pertaining to real estate appraisal. Whenever I do a review for a litigation matter, I point out the error then follow it with either an USPAP citiation or supporting market documentation.

 

[DonRico]

Marcia-

Thanks for the quick reply. I've followed your reasoned responses on this forum for quite a while and value your opinion.

I guess the thing I'm questioning is-

Yes, the 1004 is used for lending purposes, but that's not to say it's used ONLY for lending purposes. The 1004 is used by lenders because it conveys an Estimate of Value. Isn't that the very thing that make it useful for "Marital Estate Planning" purposes?

After all, there is a line on Page 1 of the 1004 right at the top in the Subject section......Assignment Type: Purchase Re-Fi or Other

To clarify the Assignment Type of "Estimate of Value for Divorce Proceedings", a Scope of Work that states FNMA Certs are not applicable in this situation, and here are the steps taken to reach the Estimate of Value.

Again, I'm looking at WinTOTAL's current version of the AI form and that form, to me, looks like a prescription for disaster under cross-exam. I would think that a familiar form with well-supported adjustments and clear addenda would meet the requirement.