Retrospective Appraisal

[GeorgiaBoy]

I received an order today for an appraisal that requires a retrospective market value, for the payment of estate taxes. I have never done one before but I am knowledgeable enough about the market area and the principles envolved to complete the assignment. However, I could really use some help with my purpose/use statement, as well as a comment for my market comparison. Any help that you guys could offer would be greatly appreciated.

 

[Restrain]

The purpose is very straight-forward, the estimate of market value as of a specific date for estate tax purposes.

You need to assume the condition of the home as of the date. Assuming you can get into the home today, if there's not been any updating, you can make a reasonable assumption as to condition then. Be sure to take interior photographs. If someone has updated the home since the date, document what has been done so you can accurately document the condition as of the date of appraisal.

As to comments as to the sales, you should comment that the photographs of the sales may not accurately reflect the condition of the sales as of the date given the time frames involved.

 

[Chris Harrison]

Brian,

I agree with Roger. If you use MLS photos of the comparable sales, clearly identify them as such.

You need to read Statement #3, page 89 and 90. The biggest mistake I see on retrospective value opinions is they are confusing because the appraiser forgets to clearly establish the date the value opinion, IE; "use of the modifier of the term "market value" and past verb tenses to increase clarity".

Your scope should be clearly identified in your engagement letter and agree upon with accountant or attorney which ever is requesting the appraisal. If it is the parties involved with the estate, ask to clarify with the end user (accountant/estate attorney). It's a lot easier to address these questions before the appraisal is finished and the attorney wants to change the scope.

Chris

 

[moe cohen]

Brian
Chris is right. Make sure that you indicate in Bold letters in a few places
that this is a retrospective appraisal as of ....Date... and indicate the date of inspection. (interior or exterior).
Moe

 

[John Hassler]

On retrospectives, I always ask for someone to provide me with a letter stating the condition of the property, as of the effective date, with specifics (ie "roof replaced 1985", "kitchen original", etc). I then reference the letter in my report, that the value in the report is under the assumption that the client provided data is correct. CYA!

I really like these types of appraisals.

 

[GeorgiaBoy]

Thank you very much for your inputs on my problem. As always there were a couple of issues identified in your posts that I had not considered. You guys are the best!!