Howard, Merrell & Partners

Real Estate Appraisers and Divorce Cases:
The Top 5 Considerations to Ensure a Bullet-Proof Appraisal

Appraisers are frequently solicited during a divorce to provide expertise for the distribution of real estate. Determining which party gets the house can be an all-out battle. Clients rely on appraisers to assess an accurate fair market value of the property. But it's not uncommon that the appraisers of the two parties report differing figures. If a client perceives a quote to be implausible or if the stated figure does not stand in court, the consequences can be damaging to a professional's reputation and profits. Take the following steps to bulletproof your appraisal during a divorce case.

• Comply With the Standards Required of You
Know and follow the guidelines set forth by the USPAP and other pertinent organizations, understanding that substantial errors of omission or commission significantly affect appraisals.

• Inspect the Property
In domestic cases requiring two appraisals (first with an effective date of separation, then an updated appraisal as the case nears the trial state), the property should be inspected both times. A drive-by inspection may not suffice, as it often neglects changes that have been made to the property and affects the integrity of the appraisal.

• Revise the Date of Trial Appraisal
Upon inspecting the property for the second appraisal, record new comments. Copying and pasting from the D.O.S. appraisal and changing the numbers will reflect poorly on the appraisal and the appraiser.

• Comparables Must Truly be Comparable
Use comparables that coincide with the effective date of the appraisal, not those that are after the date.

• Avoid Careless Mistakes
An otherwise good appraisal can be completely discredited if the appraiser makes small and seemingly insignificant errors. Double-checking the number of rooms, type of driveway and other attributes will pay off in the end.

Divorce is a process that requires accuracy and efficiency. Taking these resilient measures to ensure the credibility of the appraisal and the satisfaction of the client will prove to be beneficial for everyone involved.

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