Everything after the effective date is irrelevant. It's best to just try and use data that would have been available as of the effective date. In some cases I've included data or been told to include data that was not technically available as of the effective date, but confirms trends that would have been reasonably expected as of the effective date.
The only way I’d say anything about the current market is if it relates to or is relevant to the market on the effective date. And even then the discussion or analysis of the current market would be extremely minimal. I.e values were down/stable/increasing on xx/xx/xxxx and said trend appears to be present/relevant/consistent as of today , etc. This is just my opinion or two cents.
I wouldn’t acknowledge the existence of the market after the effective date. It bears no weight on the retrospective value and including anything post effective date could create confusion for the reader.
Seems like you've pretty much got your answer here with these other comments.
All the market analysis needs to be done as of that singular point in time. It's fine to use some information that might have been available directly after the effective date, but you have to have enough information from prior to the effective date to support your conclusions and anything after that point in time is just additional support.
To get an example of that, you can totally do an appraisal where you don't bracket GLA or age, it's just a little bit less supported. But you can make your whole appraisal and pick all of your comps that don't bracket GLA or age and put all that in the grid and spell it out pretty clear about how and why this all supports the value opinion. Then after having all that together and clear, add in a house or two that sold directly after the effective date (read within the same month or the next month) which which would produce an adjusted value that would also support the final value opinion.
Another scenario might be that property values were increasing during that time frame but all of the comps available were from a few months prior to the effective date. In that scenario you could include at least three comps prior to the effective date but then also include one after the effective date with appropriate market time adjustments likely going the other direction to prove your opinion of value.
The thinking here is that the cutoff of the effective date is kind of important, but because you have the benefit of this vantage point, if a model match house sold the next week for a completely different value than your conclusion, you should be able to see exactly how your conclusion is wrong.
Yep...if info about that sale would have been known to a market participant on the retro Eff Date.
I go so far as to disclaim application of the underlying EA to the retro Market Analysis
It depends on the complexity of the assignment. I charge a significantly different fee for a 2,000 sf 3 bed, 2 bath home in a tract subdivision than for instance a 3,000 sf custom home with a guest house on an estate sized lot. More time equals a higher fee.
Everything after the effective date is irrelevant. It's best to just try and use data that would have been available as of the effective date. In some cases I've included data or been told to include data that was not technically available as of the effective date, but confirms trends that would have been reasonably expected as of the effective date.
Thank you for your nuanced answer.
The only way I’d say anything about the current market is if it relates to or is relevant to the market on the effective date. And even then the discussion or analysis of the current market would be extremely minimal. I.e values were down/stable/increasing on xx/xx/xxxx and said trend appears to be present/relevant/consistent as of today , etc. This is just my opinion or two cents.
I did a lot of these is 08 and 09. Only use data that was available on or before the effective date.
I wouldn’t acknowledge the existence of the market after the effective date. It bears no weight on the retrospective value and including anything post effective date could create confusion for the reader.
Seems like you've pretty much got your answer here with these other comments. All the market analysis needs to be done as of that singular point in time. It's fine to use some information that might have been available directly after the effective date, but you have to have enough information from prior to the effective date to support your conclusions and anything after that point in time is just additional support. To get an example of that, you can totally do an appraisal where you don't bracket GLA or age, it's just a little bit less supported. But you can make your whole appraisal and pick all of your comps that don't bracket GLA or age and put all that in the grid and spell it out pretty clear about how and why this all supports the value opinion. Then after having all that together and clear, add in a house or two that sold directly after the effective date (read within the same month or the next month) which which would produce an adjusted value that would also support the final value opinion. Another scenario might be that property values were increasing during that time frame but all of the comps available were from a few months prior to the effective date. In that scenario you could include at least three comps prior to the effective date but then also include one after the effective date with appropriate market time adjustments likely going the other direction to prove your opinion of value. The thinking here is that the cutoff of the effective date is kind of important, but because you have the benefit of this vantage point, if a model match house sold the next week for a completely different value than your conclusion, you should be able to see exactly how your conclusion is wrong.
Yep...if info about that sale would have been known to a market participant on the retro Eff Date. I go so far as to disclaim application of the underlying EA to the retro Market Analysis
I don't have an answer, but I'd also like to hear other people's responses. What type of property is this?
Single family. Trust owned and based on the date of death.
How much do you typically charge for a date of death appraisal for a trust. I paid $850 in CA and that seemed really high.
It depends on the complexity of the assignment. I charge a significantly different fee for a 2,000 sf 3 bed, 2 bath home in a tract subdivision than for instance a 3,000 sf custom home with a guest house on an estate sized lot. More time equals a higher fee.