Pending projects impact on appraisal value?

[Surf Cat]

Reasonable appraisers will likely disagree on the magnitude of the impact, as there is no great way to determine the effect on value. Best thing to do is for him to get his crew together and finish the job, then get an appraisal to determine the value. Eliminate the point of dispute.

I like this thought process. But in reality, I believe there's no way in Hades that the ex-fiance is going to finish the project. Even though it would benefit him in the long run.

My opinion is based on doing a few divorce appraisals. When both parties were pissed off at my opinion of value, I knew I nailed it. LOL

 

[Mike Ault]

Just keep in mind that if the property appraises at $500,000, that doesn't mean that's its "cash value". You must properly allocate all the marketing expenses which will eventually be involved in disposing of the property. You're going to be paying those expenses (such as realtor commissions), based on "the total value", not just your half. Discount 100% of those from the appraised value before coming to an agreement.

 

[sputnam]

Find another builder... one who isn't your husband's buddy... and get a cost to complete and/or clean up. Apply that estimate to your thinking about the value of the property. At the end of the day, it is a negotiation. The final number will be whatever the two of you agree on.

 

[Tom D]

Unless you both agree to agree to the appraiser's value, it will come down to his and her appraisal. The judge meets in the middle if a big difference. My experience is that the attorney will eat up more cash than the difference in your values, by a lot.

 

[Joe Flacco]

Estimating the value impact for the unfinished basement should not be difficult.

Obviously, the issue with the yard is it would deter buyers in the current condition. The easiest and cheapest way to get it to marketable condition would be to fill in the hole and seed the yard. But then the person keeping the house probably wants to complete the yard in the near future and doesn't want to do that. If attempting to have an amicable divorce, should probably just value the property as if the build out of the back yard has not started.

 

[CGinMN]

Southeast - Royal Oak area

Maybe one of the regulars here can recommend a good appraiser who does divorce work in the Detroit area

 

[J Grant]

Get an appraisal done and tell him he can get one done if he likes, if not split th difference between what he thinks it is worth vs your appraisal

Sometimes in an adversarial situation, break up a relationship or business partnership, it is smarter to let the other side "win" a little and get out and get done. The cost of staying, hiring attorney delays during winter while the weather does a number on the unfinished pool plus this guy might not be that stable wrt underwater on other properties - sometimes it is worth it to eat a little $-

 

[TerryRohrer]

Thank you! Are there easy ways to identify a competent local appraiser?

https://AI.appraisalinstitute.org/eweb/DynamicPage.aspx?webcode=aifaasearch

https://www.appraisermatch.com/timothy-s-evans

 

[togatour]

You have received much good advice here. What concerns me is that your ex is the builder, he left the items you noted unfinished. He is upside down on other projects? I would seriously consider finding an impartial builder to do a thorough inspection of the home. Did your ex cut any corners when constructing the home. The things you have noted can be finished/ cleaned up but can you afford to find a big construction issue after the fact that may require 10s of thousands of dollars to correct. Get a clear picture of what you are dealing with, with cost estimates. If you still decide to move forward, give this information to your appraiser and instruct him to measure the impact on market value (likely to be more than the cost to cure).

 

[CGinMN]

You have received much good advice here. What concerns me is that your ex is the builder, he left the items you noted unfinished. He is upside down on other projects? I would seriously consider finding an impartial builder to do a thorough inspection of the home. Did your ex cut any corners when constructing the home. The things you have noted can be finished/ cleaned up but can you afford to find a big construction issue after the fact that may require 10s of thousands of dollars to correct. Get a clear picture of what you are dealing with, with cost estimates. If you still decide to move forward, give this information to your appraiser and instruct him to measure the impact on market value (likely to be more than the cost to cure).

Great advice here