Not all home appraisals are the same and it’s important to work with an appraiser who is aware of the differences in the reporting process. This post will show you exactly what you need to know about divorce appraisals.
Who orders the divorce appraisals?
Either the Homeowner or the Attorney can order the appraisal.
Some attorneys have an appraiser they routinely work with and they will give you the appraiser’s contact info so that you can make the arrangements.
If it’s not possible for you to make the arrangements then the attorney may offer to order the appraisal for you. This all depends on your specific situation and who will be permitting access to the property.
Can I choose my own appraiser?
Yes, you absolutely can choose your own appraiser and order appraisal services that suit your needs.
If a friend has highly recommended an appraiser to you based on their own positive experience and you would like to hire that appraiser then it’s totally fine.
If you are working with an attorney just be sure to speak with them first so that you are both on the same page.
How many different appraisers need to come to the house?
Each spouse can hire their own appraiser or the couple can agree to just bring in one appraiser and rely on one opinion. If a property is unusual in some way, it’s a good idea to get more than one opinion of value.
How much does a home appraisal cost?
It all depends on the location and type of property so be sure to contact the appraiser and have a detailed conversation in order to determine the fee ahead of time.
What does the fee include?
Different appraisers have different fee schedules.
I think it’s safe to say that typically, the fee includes the inspection and the report only.
The fee typically does not include any form of court testimony or court appearance by the appraiser. Fees associated with these additional services are usually negotiated with the appraiser, in writing, on a case by case basis.
Can I expect the appraiser to value my home on the higher end because I told them that my spouse is buying me out?
That’s a big NO.
As appraisers, we are not advocates.
Even though you have hired us it does not mean that we will “lean your way” when determining the estimate of value.
We must remain unbiased. Accepting an appraisal assignment is not based on a requested minimum value, maximum value or specific outcome.
What is the Effective Date and why is that important for divorce appraisals?
The effective date is the date upon which the appraiser is basing their estimate of value.
I always encourage the homeowner to speak with their attorney to determine the effective date since there are several options.
The effective date could be:
- The current date (day of inspection)
- The date of separation
- The date of divorce filing
- A different date based on something else…
It’s important to clearly convey to the appraiser the effective date. Especially in a market where the prices are rapidly changing.
In some cases we will be requested to complete 2 or 3 reports, each with different effective dates so that the homeowners can determine the change in value over time. An example would be:
- Report #1 – Purchase date
- Report #2 – Marriage date
- Report #3 – Current date
When should the appraisal be ordered?
If you have hired an attorney then follow their advice. If you are not using an attorney then it’s totally up to you….
However, it’s usually better to get the appraisal completed sooner rather than later.
Here’s why:
If you are using the date of filing papers for divorce as the effective date and you have waited a few years to order the appraisal… then there may have been some changes in the condition of house.
The longer you wait, the more challenging it becomes for the appraiser to verify certain information pertaining to comparable sales, which could possibly result in a higher fee due to the extra time involved.
Each situation is different but, most people order the appraisal within 3-6 months of filing for divorce.
Does the appraiser need to go inside the house?
It’s not necessary to go inside and the appraisal can be completed based upon information provided by the homeowner or a 3rd party.
However, an appraisal is usually only completed this way when the occupants refuse entry or if it is unsafe to enter the property.
It’s generally best if the appraiser is permitted full access to the property.
What does the appraiser do during inspection? What are they looking for?
How to Prepare for an Appraisal:
- We take lots of photos – I personally take photos of every single room, all outbuildings, all deferred maintenance, higher quality improvements and all recent updates.
- We measure the house and any outbuildings and walk around the outside of the property.
- We are not home inspectors so we do not climb on roofs or determine if everything is up to local building codes.
- We do not care about the dishes in the sink, whether or not your bed is made or if your kid’s toys are all over the floor… so do not sweat any of that stuff… We are looking at the overall quality and condition of the property… which does not include your personal items.
What information about the property should I provide to the appraiser?
- Some homeowners provide a written list of all of the updates and renovations. I love those homeowners! But, it’s not necessary and I am happy to have you tell me all about these items during the inspection or over the phone.
- I am also happy to research at any other information that you feel is important such as recent sales in the neighborhood, etc.
- If you own a very large, unusual or custom built home and have architect drawings that could be sent via email, that would be helpful, but not required.
How are divorce appraisals different from the report that I received when I bought the house?
Or from when we refinanced the house?
The divorce appraisal report is completed on a different form which includes and excludes specific information such as:
- The divorce appraisal report does not follow Fannie Mae guidelines and we are not restricted by the same rules that Fannie Mae places upon reports completed for lending purposes.
- Reports completed for divorce should include a detailed description of all of the improvements, a thorough explanation of exactly how the comparable sales were chosen and the method upon which each adjustment has been applied. Clear and concise language should be used in order to expertly defend in court if necessary. (Personally, I think this information should be required for lending assignments also, but I have reviewed enough reports to tell you that it’s not the case.)
Who will see the report for divorce appraisals?
The Client and anyone that the client decides to share the report with will see the report…
However, client confidentiality restricts me from discussing the results of the report to anyone other than the Client. (Note: An exception being called on as an Expert Witness in court).
Which means, if one spouse orders the appraisal then I will not share or discuss the results of the appraisal with the other spouse unless it is clearly permitted in writing for me to do so by the spouse who hired me.
Hopefully, all of your questions related to divorce appraisals have been answered.
Divorce is hard enough without worrying about the ins and outs of the value of your property….
Although as appraisers we must remain impartial in our opinion of value, I am not without compassion and understanding and have spent many appointments just being an ear to listen, with no judgement.
I have been there and know what it’s like to feel all the various emotions that go along with this difficult process….
Feel free to contact me with any and all questions or concerns anytime.
Marriage and Divorce stats for Pennsylvania
Divorce is one of the most financially traumatic things you can go through. Money spent on getting mad or getting even is money wasted.
Richard Wagner
