Probate Appraisal

[robertwells]

Hello all,

Dumb question of the day...In my 27 years of doing this, the vast majority of my experience has been with lenders/banks. I have done some private, market value assignments to assist with trust/estate planning, but have a current request for an appraisal for probate. Is there anything different in a market value probate appraisal versus estates or standard appraisal assignments (meaning for banks/lenders)?

Thanks in advance!

Bob Wells

 

[Bob Ipock]

Generally will be done as of date of death. Be sure sure you have one person only to answer to. If there are multiple relatives, they all want your ear. If an attorney hires you then deal only with him/her. If it is the executor or executrix of the the estate deal only with them. I do a lot of these and sometimes the family wants you to be Dr. Phil and solve all the family problems. I have never had any serious problems but have had some crazy requests and expectations.

 

[CindyR]

and use the IRS definition of Fair Market Value

 

[nstanbru]

Are you sure this is for a probate or is the property in a trust?

 

[Terrel L. Shields]

Date of death or six month later. Their call.
Good advice above.
Use IRS definition
Purge report of lender terms.
Do not use a Fannie Mae form

 

[robertwells]

Date of death or six month later. Their call.
Good advice above.
Use IRS definition
Purge report of lender terms.
Do not use a Fannie Mae form

Thanks, Terrel... You cannot use the 1004? Is there some other form, or are you saying a narrative report? Thanks, Bob

 

[chad hampton]

I haven't done these, and I can't speak for terrel, but I would use the non-lender 1004type form. Check forms library in software?

It's a common mistake - but the 1004 even says "borrower" on page #1. I use the non-lender form for every non-lending assignment. There is no borrower.

 

[TRESinc]

Thanks, Terrel... You cannot use the 1004? Is there some other form, or are you saying a narrative report? Thanks, Bob

no, do not use a 1004. GPRes is one alternative, narrative is another.

 

[Terrel L. Shields]

are you saying a narrative report?

I do a narrative because it is flexible and I no longer own any form software, but the general purpose form would be the best form for this, but do use the IRS definition of value. And the Fannie Mae forms are explicit. They are only for their use.

 

[Mark K]

Agree with others.

Use a GP form or narrative. Include lots of photos. Use the correct effective date (current date or date of death, usually, attorney will tell you for certain). If the appraisal will be used in conjunction with the filing of a federal estate tax return, use the IRS definition of FMV. If the effective date is retrospective include an Extraordinary Assumption that the property condition on the effective date is similar to the inspection date.

Otherwise, nothing special. Explain things so that a non-real estate professional can understand them. Charge accordingly (most important).