What this report has to survive
A litigation appraisal is read by someone whose job is to find the weakest thing in it.
That is the design constraint, and it drives everything about how the report is written. Nothing is asserted that could instead be shown.
Which comparable sales were selected, and why those and not others. What adjustment was applied to each, on what evidence, and in what direction.
What was inspected, what was not, and what was assumed as a result. Where a conclusion rests on an extraordinary assumption, the report says so in terms rather than burying it.
The test is simple. Every individual adjustment should be defensible on its own, because that is how it will be attacked.
The effective date belongs to counsel
The date on which the property must be valued is a legal question — determined by the cause of action, the pleadings, or an agreement between the parties.
It is frequently not today. In a moving market the gap between two candidate dates is substantial enough to be worth arguing about, which is why it gets argued about.
Ordering before it is fixed is the most common way a litigation appraisal is wasted.
The appraiser takes the effective date as an instruction. Where it is genuinely unresolved, say so at the outset — the engagement can be written so a second date is added later at a reduced fee.
Independence is the product
An appraiser engaged by one party is still bound to impartiality under the USPAP ETHICS RULE.
That is not a formality. It is the entire reason the report has any value to a tribunal.
A number that moves to suit whoever is paying is worth nothing the moment anyone looks at it closely, and it exposes the appraiser to a great deal more than an unhappy client.
Two practical consequences, worth knowing before you engage anyone:
- No fee contingent on the outcome. Not on the value reached, not on whether the matter succeeds. This is prohibited, and an opposing expert will ask.
- No advocacy. The appraiser can explain and defend the analysis. The appraiser cannot argue your case, and an appraiser who tries will damage it.
Where these come up in New Jersey
Partition actions between co-owners. Partnership and LLC dissolutions holding real property. Estate disputes where the date-of-death value is contested.
Boundary and easement disputes. Bankruptcy schedules. Casualty and insurance claims, where the effective date is usually immediately before the loss.
Divorce and equitable distribution is common enough to have its own page, as is property tax appeal, which runs on its own statutory timetable and effective date.
Testimony
Deposition and testimony are engaged and quoted separately from the appraisal.
Raise it with counsel early rather than when it becomes urgent. Availability is usually the binding constraint.
Whether any particular appraiser is qualified as an expert in a particular matter is a decision for the court, made on the record in that case.
Nobody can promise it in advance, and you should be wary of anyone who does.
This page describes appraisal practice. It is not legal advice, and nothing here substitutes for counsel’s judgement on valuation dates, scope, or expert disclosure obligations.
New Jersey specifics
- New Jersey matters that commonly need one: partition actions between co-owners, partnership and LLC dissolution holding real property, estate disputes among beneficiaries, boundary and easement disputes, casualty and insurance claims, and bankruptcy schedules.
- The effective date is a legal determination and belongs with counsel. Ordering before it is fixed is the most common way a litigation appraisal is wasted.
- Where a matter is likely to reach the New Jersey Tax Court rather than a county tax board, say so at the outset. It changes the level of support the report needs.
What you receive
- Appraisal report with the effective date specified by counsel or the pleadings
- Comparable sales and adjustments set out individually, each capable of being defended on its own
- Explicit statement of the scope of work, and of anything excluded from it
- Disclosure of every extraordinary assumption and hypothetical condition relied on
- Signed USPAP certification including the statement of independence
What we need from you
- The effective date, or confirmation that it is still contested
- The intended use and the intended users, which USPAP requires be identified
- Access for inspection, or documentation where inspection is not possible
- Any prior appraisal of the property, including one you would rather we did not see
- The discovery schedule and any hearing date