[StBernard] Appraisal

[Westley Annis]

David,

We appraisers were taught and always preach that an appraisal is not a
scientific process, but simply an opinion of value reached by following
acceptable guidelines and using a methodological approach to collecting data
and arriving at a final estimate value.

Sorry for the text book lesson, but all I'm saying here is as an appraiser I
use a particular approach to arrive at an estimate value (opinion) of a
given property that is approved by the governing body over appraisers.  In
my case, the Louisiana Appraisers Board and  the Appraisal SubCommittee in
Washington, D.C.

That being said and the fact that I am licensed and certified by the State
of Louisiana - and in good standing, others (such as the IRS or a
governmental agency adminstering a "buy out" program) should not reject my
appraisal.  But, because it "is" only an opinion, I guess there's nothing to
stop them from rejecting it..but also let me say this.

The IRS, etc. will accept the fact that I am a competent appraiser and in
practice will probably not question an appraisal by me or any other properly
licensed appraiser.  However, if they do, they cannot simply look at you and
say "sorry, we're not accepting this.  They "do" have to give you good
reason for rejecting the appraisal and typically their policy will require
another appraiser's opinion to refute mine.  So, they're not going to reject
my opinion unless they have another appraisal to use as an argument to
refute mine.  Now, who knows.....they might tell you to get a "second"
appraisal or opinion to compare the results.  I've heard of this when
dealing with the highway department when they expropriate your land.

Specfically for the IRS, if you're trying to write off the loss of your
home, there's a section in the tax form where you are asked to check off if
the opinion of value (and loss) was performed by you or a licensed
appraiser.  Believe me, you had better check off the "appraiser" box -
because it's spefically stated by the IRS in their publication 547 the
opinion of value must be performed by an appraiser.  Now, I'm not certain,
but I don't believe the IRS requires you to actually submit the appraisal as
part of all the documentation submitted when filing.  If you know a CPA, ask
him/her to learn for certain.  But, the auditors and reviewers at the IRS
are not appraisers.  Hell, I doublt if they are very knowledgeable about
real estate.

The IRS gentleman in Indianapolis I spoke with for nearly two hours told me
he just happened to be knowledgeable of real estate appraising since he
owned several duplexes, but even he admitted "how would anyone in the IRS
reviewing someone's taxes in Ohio, Wisconsin or where ever, have any clue as
to my opinion being accurate or not on a property down in Louisiana."  He
said they will likely assume since I am a licensed appraiser in good
standing that my opinion on its value was arrived at properly and honestly.
Besides, I always have comparable sales and other data to back up how I
arrived at my opinion of value - should the IRS contact me and ask me to
explain myself.  That's part of the methodology I mentioned earlier.

Now, when it comes to the Buy Out programs that will come down the
pipe...hey, I always say leave the water bucket aside and fight fire with
fire.  If whatever agency offers what you feel is too little for your
property, then show them your appraisal and ask them to show you how they
came up with their pre-Katrina value.  If they cannot justify their value,
then you should have the upper hand in negotiating or making an appeal.  But
who knows, they might tell you they will accept an appraisal from any
competent and licensed appraiser in good standing with the Louisiana
Appraisers Board.  Boy, wouldn't that make things easy.

I probably gave you more of an answer than you wanted, but I hope it
answered your question.

On the other subject...yes, Vincent is my uncle and Larry is my Dad.  I know
my uncle and his family are fine, but I'm not certain where they are located
right now.  My 80 year old Dad was plucked off a roof top in East Over by a
Coast Guard chopper the day after Katrina.  Nahhh, it's a long story to
explain how he ended up in East Over, but the important thing is he is in
good health and onerous as ever - meaning he's doing just fine.  Though,
it's been many a full moons since he's had anything to do with real estate -
you might have been his only sale.

Thanks for asking,

John Scurich


----- Original Message -----

> -----------------------------------------------------

>

> John Scurich,

> When you make an appraisal for someone can you be sure that appraisal 

> will be accepted by any buyout group?

> And is it accepted by the IRS?

> By the way, I'm sure you're related to Larry and Vincent in some way.

Larry

> was an agent for a house I was selling at one time and I worked with

Vincent

> at the Bywater Post Ofiice in NO. How are they doing?

> Thanks,

> David Jochum