Retrospective Appraisal Question

[Jeff Horton]

Sorry, I worded that wrong. He used sales that were after the effective date. I can see using one that was a within say 2-3 months after the sales date. But a year seems to stretch it a bit. The older the effective date the more I can see having to do this. But mainly I am just wondering if there is anything wrong with this. In my case I have plenty of data. I actually have more data for the 99 appraisal than I do the 2002 date!

 

[Richard Carlsen]

Jeff;

Good thread.

In a retro appraisal, you generally cut off at the "As of" date for sales. That is one of the problems with a retro. The appraiser has the benefit of knowledge of the market after the "As of" date. In this case however, I think that you could establish that due to the time involved and the lack of hard data available, you would be justified in using sales that occurred very near the same time, even if they were after the "As of" date. I would go so far as to check to see what the rate of inflation was in 1966. Remember that we were in a war and spending was going up so there might have been some inflationary pressures. I don't remember as I was doing some Navy work for my Uncle in beautiful SE Asia. If there was some inflation, I would think that using "post-As is" properties with a reverse adjustment for date of sale based on the rate of inflation might also be justified.

This is a hard assignment but doable. Hope you built enough dollars into the billing on this to justify the work you are going to do. The one thing that would be hard is for anybody to criticize your work. Everybody is an expert in real estate but not everybody has a memory that will recall this type of detail 36 years later.

Keep us informed of how you do.

 

[Verne Hebert]

Don't forget you are javascript:emoticon(':lol:')
Laughingalso compliant with USPAP in the year of the retro.