BEFORE you retain them make sure that the bank you are going to get a loan through will accept their work. They may have their own required people to be used.

“It depends.” The first trust needs an FMV appraisal. Whether one is also needed for the second trust depends on how the trust was set up and what kind of trust it was.

Don’t offer clients tax advice. That is their accountant’s job. IRS allows alternate date election on Form 706 (estate tax returns) which means the date of value can be up to 6 months after the date of death. That brings you to within 9 months of the second date of death. That may or may not be, or become relevant.

It is possible that there was no change in value between the two dates, but you cant assume that; nor condition an appraisal on it. If you are in an area with little activity, and 9 month+ old sales are the ‘best around…or 12-15 month sales are legitimately best available it’s possible both values would depend on the same comparables…but any values have to be separately developed.

There is some older information at https://www.mfford.com under estate and gift taxes that may help. Also, you may be dealing with generation-skipping or other trusts, etc that have special handling. You REALLY need to leave this to the tax advisor. No two taxpayers’ circumstances are the same and IRS looks at each case separately and independently of any other cases you may be ware of. Good luck!

I scoured the fnma ucdp pages and likewise could not find specific reference to hybrids.

Great article Mr Towne, and don’t you know it, these essential topics were not covered in regular appraisal training or testing classes.

Next up, essential breakdown of firrea?

A critical oversight I think. Under FIRREA ‘evaluations’ may NOT be called appraisals. My suspicion is some more linguistic gymnastics are on the horizon…either by the feds or TAF. Users and investors want the word “appraisal” in the valuation document.

Sign up,

The intended use of this appraisal report is for the lender/client to evaluate the property that is the subject of this appraisal for a mortgage finance transaction.”

Yup, the intended use was not to fill databases to be used in competition with appraisers.

Sign up!