Fee for divorce appraisal

[DanfromIE]

Hi All,
I've been so busy (until recently) with lender work, I have not done a divorce appraisal for many years. I have been asked to do six SFR appraisals for an attorney whose client is divorcing. (1 $1m owner occupied, and 5 rentals in iffy nbhds). How do your divorce fees compare to lender work? What are the considerations? Less gov't required boilerplate, but more potential for future disputes. How much time - is it more or less - is required? I plan to do the same scope of work. Any advice is appreciated!
Dan from SoCal

 

[Vermonter]

For any portfolio assignment, I lean heavily on hourly rate and expenses to quote a fee. How many hours with the entire assignment take including explanation, clarification and unforeseen delays. How long will it take to get SFR rental data? How much will I spend in fuel, docs, etc? You also said you haven't done any recently, so it will take you longer based on the unfamiliar reporting alone. Be realistic.

You also want a solid engagement letter accounting for every scenario.

 

[DanfromIE]

Thank you for your quick response. Generally speaking, I believe attorney work should pay a bit more than lender work? Keeping in mind my lender work appears to have dried up...

 

[glenn walker]

Hi All,
I've been so busy (until recently) with lender work, I have not done a divorce appraisal for many years. I have been asked to do six SFR appraisals for an attorney whose client is divorcing. (1 $1m owner occupied, and 5 rentals in iffy nbhds). How do your divorce fees compare to lender work? What are the considerations? Less gov't required boilerplate, but more potential for future disputes. How much time - is it more or less - is required? I plan to do the same scope of work. Any advice is appreciated!
Dan from SoCal

A Lot of Property good chance you may end up in Court . A Business decision but personally I walk from those as too many bases to try and cover. BUT if you do them you need a letter of eggagemnet stating what you will or wont do and what your fees are for court testimony -You are not acting as a Expert Witness and will-only testify to your appraised value and that you did the reports. Blah, Blah, Blah. Now fees' so most are rented out ? Makes it hard scheduling and tenants may or may not be cooperative. ( uncopertiave tenants )

In Summary: My experience was often two times the work -lots of scheduling conflicts with tenants. Double fees minimum but frankly I no longer will even do them as almost all with multipe rentals had a angry Husband or Wife is going to cause trouble. never seen a husband and wife on A Million Primary and 5 rentals expect fire works. Ever been to a court house in Los Angeles or Orange County SB or Riverside ? Hours of freeway driving in traffic sitting around court house and wishing you would just die. NOW GET SOME ADVICE from a young bullish guy or gal that has had good experiences with divorce appraisals on multipe owned rentals located in Felony Flats neighborhoods. $10,000 cash up front ?

 

[Surf Cat]

Make sure to the assignments on general purpose forms as they omit lending verbiage hardwired within the form.

I have an offshoot question regarding this subject matter.

I verbally stated to the client the last time I did one of these that I would not give testimony or appear in court to which the client agreed. I stated the above in the engagement letter as well as within the body of the report.

Additionally, the "will not give testimony or appear in court" is also in the GP assumptions, limiting conditions and scope of work attachment.

Given all of the above, could I still be summoned / subpoenaed to appear?

 

[ZZGAMAZZ]

Make sure to the assignments on general purpose forms as they omit lending verbiage hardwired within the form.

I have an offshoot question regarding this subject matter.

I verbally stated to the client the last time I did one of these that I would not give testimony or appear in court to which the client agreed. I stated the above in the engagement letter as well as within the body of the report.

Additionally, the "will not give testimony or appear in court" is also in the GP assumptions, limiting conditions and scope of work attachment.

Given all of the above, could I still be summoned / subpoenaed to appear?

I'm curious about why an attorney would hire an appraiser who in advance refuses to testify, which is integral to the SOW of a marital dissolution matter. I guess that's why you are asking about the subpoenae. Good question.

 

[Surf Cat]

I'm curious about why an attorney would hire an appraiser who in advance refuses to testify, which is integral to the SOW of a marital dissolution matter. I guess that's why you are asking about the subpoenae. Good question.

My client was the ex-husband to be. The scope was for a retrospective value. He was getting the valuation for his attorney.

My client purchased the property prior to getting married and his attorney was looking not to split the down payment and time spent in the property prior to getting hitched which of course, was not my concern.

You have to believe that the ex-wife (or her attorney) was getting their own appraisal.

If there was a wide margin between the two assignments, could I be called in to testify even though I stated I wouldn't in the report....just curious.

 

[Michigan CG]

I'm curious about why an attorney would hire an appraiser who in advance refuses to testify, which is integral to the SOW of a marital dissolution matter. I guess that's why you are asking about the subpoenae. Good question.

In Michigan we almost never have to testify in court for divorce but I know of no attorney will hire an appraiser who says they will not testify.

 

[Michigan CG]

To the original poster. Divorce work has been good since the start of Covid. I have divorce assignment #85 on my desk right now. I do divorce work for residential, farm and commercial properties. Yes farms, have had two so far.

I used to do about 6-8 per year. For some reason everyone is getting divorced.

You need to be careful in this type of work. It sounds like these people have money and therefore you might want to assume a second appraiser is involved. I tell my trainee that it should always be assumed another appraiser is involved no matter the appraisal assignment including lending work.

I have completed hundreds of divorce appraisals and the most common mistake made by appraisers is that they have canned comments, FNMA or FHA language in the reports, they might use the 1004 form (bad mistake) and have no support for any of their adjustments.

Divorce work is not AMC work, you actually have to have a supported report that adheres to USPAP as there might be an appraiser on the other side hired to discredit you.

I have seen so many terrible divorce appraisal reports. Some of these appraisers are like a deer in headlights when they are challenged by a review of their report from the other side.

The worst appraisal for divorce I have seen was a report in mid 2021. The appraiser included the Cost Approach. I discredited his entire report using his Cost Approach. He also mentioned FNMA guidelines that were retired in 2015 for a divorce report. Idiot.

 

[sputnam]

Assuming a similar Scope of Work, the fee for the appraisal itself would be no different than my fee for Lender work for the same property. The fee for appearing in court, if needed, is separate.