RETROSPECTIVE APPRAISAL CAN IT BE MADE "SUBJECT TO...."

[bcodrington]

I am working on an appraisal for a trust with an effective date if 06/04/2019 - the house is currently a wreck and the owners are in the process of remodeling the home.....can I do the appraisal with the effective date of 06/04/2019 and make it "subject to completion....." This one is really baffling me. I do a lot of new construction appraisals and the houses are usually "under construction" as of the effective date with a "subject to.....". Help!!

 

[CANative]

It's a retrospective value. How would making the appraisal conditioned on completion of something help your client?

 

[Dublin ohio]

Question is. How are you going to determine what the condition was as of the effective date?

 

[George Hatch]

What condition was the home in as of 06/04? Did they start the remodel after that effective date?

 

[bcodrington]

I am working on an appraisal for a trust with an effective date if 06/04/2019 - the house is currently a wreck and the owners are in the process of remodeling the home.....can I do the appraisal with the effective date of 06/04/2019 and make it "subject to completion....." This one is really baffling me. I do a lot of new construction appraisals and the houses are usually "under construction" as of the effective date with a "subject to.....". Help!!

It is in basically the same condition today as it was on 06/04/2019 with the remodel not started - I'm thinking I can't make it subject to in that case -

 

[bnmappraisal]

I am working on an appraisal for a trust with an effective date if 06/04/2019

It's a retrospective value.

Agree with CAN. Seems your client is wanting to know what the property was worth as of 06/04/2019 ... am I missing something with the SOW?

 

[George Hatch]

It is in basically the same condition today as it was on 06/04/2019 with the remodel not started - I'm thinking I can't make it subject to in that case -

The condition today is apparently part-way through a remodel. Are you saying it was in the same shape it had been in for the previous 3 years prior to the remodel? Or are you saying the remodel started prior to 06/04 and the house was in torn up condition on that day?

 

[bnmappraisal]

I do a lot of new construction appraisals and the houses are usually "under construction" as of the effective date with a "subject to....."

That's a different type of SOW
In the case of new construction, the eff date is "today" and you are pretending/"Subj To" the structure is complete (per plans/specs) and WILL BE worth $zzz
In the case of a retro, you're saying (in the case your describe) that as of 06/04/2019 the subject WAS worth $zzz

 

[James Micozzi]

I am working on an appraisal for a trust with an effective date if 06/04/2019 - the house is currently a wreck and the owners are in the process of remodeling the home.....can I do the appraisal with the effective date of 06/04/2019 and make it "subject to completion....." This one is really baffling me. I do a lot of new construction appraisals and the houses are usually "under construction" as of the effective date with a "subject to.....". Help!!

nope.

 

[bart nathan]

Appraisal is made as is with a effective date of 06/19/2019

Report is subject to the Extraordinary Assumption the subjects condition was poor stated by the client as of the effective date of 06/19/2019. Current remodeling completed as of the date of inspection on 08/16/2019 had not yet started per clients remarks. If statements from client which if found to be false, could alter the appraiser's opinion or conclusions.