Glad we could help!

When I started as an agent back in 1971 we ALWAYS provided a range of estimated value. This was back in the days when any agent worth their salt could drive down a street and tell within $500 what a specific $25,000 to $30,000 middle class house would sell for. Of course we weren’t burdened by appraisal training & limitations of appraisal principles back then. We just KNEW from the shared experience of our mentors. If a caravan consensus had a 10% range, it was cause for a 15 minute discussion/argument with the listing agent back in the office afterward. Back then offers were also presented face to face over a kitchen or dining table. There were the sellers; their agent and the buyer agent. Americans have lost a lot with ‘Mongo’ or whatever it is called, including the reassurance that our offer was ever presented to a seller.

I digressed…again.

Yes, a range makes sense to all but lenders and others that base other percentage calculations on point values. Present a range to IRS and your estate tax will be calculated on the HIGH end unless you can then PROVE its the lower end that is applicable. If so, what was the point?

The most probable hypothetical buyers inherent in the definition of MV use ranges. They present their offers at the lower end of their range; sellers try to get them to the higher ends of that range, or at least over THEIR own  lower end of range.

Like I said, IRS is NOT one that you can use a range with. Not for estate tax. Not for gift tax, and not for so called ‘date of death’ appraisals -which we should cease using completely since there is no such thing in IRS lexicon. Estate value is based on EITHER date of death or alternative election date six months later- its the estate’s choice; gift tax is the date of the gift. IF you are referring to establishing a new tax basis as of the date of death of the grantor or bequestor, or trustor (not to be confused with a trustor in lending) then please refer to it as an appraisal to “establish, or set a new basis” instead of ‘date of death’ which is ambiguous and confusing. As another aside, make sure you are using the correct FMV version (NOT MV). FYI http://mfford.com/html/value_definitions.html

Last item-by providing values in our estimates of exposure and marketing range time ranges, aren’t we in essence contradicting our own opinion of the point specific market value already?

KUDOS TO THE APRAISERS BLOG TEAM for fixing all my problems…or at least the ones I had with the blog!

no appraiser knows exactly what any house is worth. ask three different appraisers to appraise a house and you will more than likely get three different opinions of value. why? because all their results are a range of value.

i think the answer to the original question is ‘”it depends”. if the value range is tight, i think we should be able to provide a range. if the appraisal is for a high-end home, or the value range is much broader for whatever reason, then no, i dont think some crazy wide range value should be allowed or would be appropriate.

contrary to what all the suits who sit all day in high-rise air conditioned offices think, much of what we do is not an exact science, and never will be.

the bleeding continues . . . . .