Did you know there are 3 important dates of an appraisal?
#1 – The Date of Appraisal Inspection
This is the day the home appraiser will arrive, measure your house, write down detailed notes, ask you questions and take lots of photos of your home.
You should prepare for the appraisal so that this appointment goes smoothly.
#2 – The Effective Date of the Appraisal
This date is crucial to home value.
Because the effective date is the specific date the estimate of value is based upon.
And the effective date could vary upon the Client’s request.
For example, suppose the purpose of the appraisal were for a divorce.
There are several options for the effective date.
Here are just a few:
- The day you were separated.
- Date the divorce was filed.
- Actual day of the appraisal appointment.
Sometimes there is more than one effective date because you may want to know what your property was worth at a specific point in time and then how much the value has increased or decreased within a certain time frame.
Example: You bought a property in 2000, then met your spouse and got married in 2005, separated in 2020, the appraisal report is completed in 2021. In this case you may need to know more than 1 value. It’s important to ask your attorney which date(s) will be the used for the report so that your appraiser is basing their opinion of value on the correct effective date(s).
Another example would be if you needed an appraisal report for filing inheritance taxes.
The IRS requirements are specific about the effective date of the appraisal.
Typically, we complete these types of reports to value the property as of the date of death.
However, there is some flexibility in that date and you should speak with your attorney or accountant to see what is the best course of action for your specific situation.
#3 – Date the Appraisal Report is Signed
Sometimes we are asked to amend the report because certain information is made available that requires a change in the appraisal report.
Whenever, we make any kind of change to the report it will have a new signature date.
This is how you will know that you have the most current appraisal report submitted by the home appraiser.
The dates of an appraisal are important
If you are ever unsure of the dates of the appraisal simply ask the appraiser where to find them in the report.
At least three times every day take a moment and ask yourself what is really important. Have the wisdom and the courage to build your life around your answer.
Lee Jampolsky
