Probate Appraisal

[robertwells]

Thanks very much everyone for your replies! Anyone care to take a stab and the real life differences between FMV and market value? Thanks again all! Bob

 

[andrew81]

identify the definition of value

 

[Walter Kirk]

Do not follow lender or AMC guidelines as to comp selection. If the best comparable is the two year old sale of the house across the street use it! This is your chance to do a real appraisal not influenced by lenders. Also do not use the UAD, write your report in English so that your client can read it without referring to lender created definitions. As stated by others use the date of death as the valuation date unless directed by your client to use another date. Do not use a lender form , the GP or AI both work well in this situation, I prefer the AI form

 

[Mark K]

Thanks very much everyone for your replies! Anyone care to take a stab and the real life differences between FMV and market value?

Realistically? Very little and in many cases, none. But it depends on the definition you're using in the report and there may be distinctions that you have to keep in mind during the report development. .

The main thing to remember is that, if the report will be used for a Fed estate tax return, then you need to use the IRS definition in the report. Your client needs to communicate the intended use and users so you can agree on the proper scope.

 

[Terrel L. Shields]

Anyone care to take a stab and the real life differences between FMV and market value

FMV reflects legal and tax /CPA terminology. MV is a creation of lenders.

 

[Mike Kennedy]

Thanks very much everyone for your replies! Anyone care to take a stab and the real life differences between FMV and market value? Thanks again all! Bob

https://www.appraisalcourseassociates.com/1265/

Also recommend researching the Treasury's definitions of "qualified appraisal" and "qualified appraiser".

 

[robertwells]

Thanks everyone for your time and input...last question here...If the party reaching out to me is a realtor, with regard to client identification in the report, any tips on defining who this should be?...I believe an earlier poster said important to get one party you are communicating with...If the realtor was the initial contact, are they the "client"? Thanks again! No more questions...Bob

 

[andrew81]

could you provide the definitions of fmv and mv you are using?

typically the person ordering the appraisal is the client; however, they could be ordering it on behalf of another. this is something you will have to discuss with the realtor and intended users.

here is the USPAP definition of client
CLIENT: the party or parties who engage, by employment or contract, an appraiser in a specifc assignment.
Comment: The client may be an individual, group, or entity, and may engage and communicate with the appraiser directly or through an agent.

 

[Terrel L. Shields]

I have not had Realtors reach out. typically it is the trust department of a bank, a CPA, a tax lawyer, or the trustee of the estate. In general it is the trustee who hires you. But the CPA & or tax Atty might be named as an intended user. The IRS is not an intended user per se.

 

[Mark K]

I've had realtors 'reach out' to me over things like this. I tell them to have the estate attorney contact me and from that point the realtor is out of the picture. The client then would be the lawyer. I'd never name the realtor as the client nor as an intended user in a case like this.