REASONS TO GET AN APPRAISAL
For many Americans, owning a home is essential in the fulfillment of the American dream. Ownership conveys many economic benefits, such as the ability to accumulate wealth, greater access to credit through building home equity, even reducing living costs through the mortgage interest deduction, and the long-term savings over the cost of renting.
Many attempt to buy, sell, or refinance their portion of the American Dream. Most of these transactions must include the performance of a real estate appraisal. An expert is employed to perform a valuation for either the buyer or the seller in making a proper decision.
There are many times when the services of a Certified, Licensed, independent Real Estate Appraiser may be of value.
SELLING A HOME
Whether you choose to sell your home on your own or use the assistance of a real estate agent, an independent professional appraisal can assist in making an educated decision in determining a selling price.
Unlike a real estate agent, an appraiser has no vested interest in what amount the house sells. It's easy for them to step in and give you the information to help you make your decision. Seeking a professional appraisal can often help homeowners make the best decisions on investing in their homes and setting a fair sales price.
Whether you choose to sell your home on your own or use the assistance of a real estate agent, an independent professional appraisal can assist in making an educated decision in determining a selling price.
Unlike a real estate agent, an appraiser has no vested interest in what amount the house sells. It's easy for them to step in and give you the information to help you make your decision. Seeking a professional appraisal can often help homeowners make the best decisions on investing in their homes and setting a fair sales price.
PURCHASE OF A HOME One of the most important issues involved in purchasing a property is developing an opinion of what the property is worth so that one can make an informed offer to purchase. A professional appraisal report performed by a qualified, state-licensed appraiser can provide you with an independent opinion of the current market value of a property. This service can provide assurance the one is offering a fair price for the property prior to making an offer to purchase. |
PMI REMOVAL
Private Mortgage Insurance or PMI is the supplemental insurance that lenders may ask home buyers to purchase in the event that the amount being loaned is more than 80% of the value of the home. Very often, this additional payment is added into the monthly mortgage payment. This is unfortunate because PMI becomes unnecessary when the remaining balance of the loan, through market
appreciation or principal pay-down, falls below this 80% level. In fact, the United States Congress passed a law in 1998 (the Homeowners Protection Act of 1998) that requires lenders to remove the PMI payments when the loan-to-value ratio conditions have been met.
Many appraisers offer a specific service for home owners that believe they have met the 80% loan-to-value. The appraiser can provide an appraisal report with your current home value. The costs of these services are very often recovered in just a few months of no longer having to pay the PMI.
Private Mortgage Insurance or PMI is the supplemental insurance that lenders may ask home buyers to purchase in the event that the amount being loaned is more than 80% of the value of the home. Very often, this additional payment is added into the monthly mortgage payment. This is unfortunate because PMI becomes unnecessary when the remaining balance of the loan, through market
appreciation or principal pay-down, falls below this 80% level. In fact, the United States Congress passed a law in 1998 (the Homeowners Protection Act of 1998) that requires lenders to remove the PMI payments when the loan-to-value ratio conditions have been met.
Many appraisers offer a specific service for home owners that believe they have met the 80% loan-to-value. The appraiser can provide an appraisal report with your current home value. The costs of these services are very often recovered in just a few months of no longer having to pay the PMI.
DIVORCE SETTLEMENT
In most divorce cases, the Court won't usually force the parties involved to "buyout" the other party's interest, but it may however order the sale of the home so each party gets an equal share of the equity. Regardless of the situation, it's a good idea to order an appraisal so both parties are fully aware of the true market value.If the parties want to sell the home, they will have a better idea in setting the offering price. If the option to "buyout" is chosen, both parties will feel like they've gotten a fair assessment.
In most divorce cases, the Court won't usually force the parties involved to "buyout" the other party's interest, but it may however order the sale of the home so each party gets an equal share of the equity. Regardless of the situation, it's a good idea to order an appraisal so both parties are fully aware of the true market value.If the parties want to sell the home, they will have a better idea in setting the offering price. If the option to "buyout" is chosen, both parties will feel like they've gotten a fair assessment.
ESTATE LIQUIDATION
The loss of a loved one is a difficult time and settling an estate from a death, or probate, often requires an appraisal to establish Fair Market Value for the residential property involved. The ethics provision within the Uniform Standards of Professional Appraisal Practice (USPAP) binds the appraiser with confidentiality, ensuring the fullest degree of discretion.
In most cases, a home or other real property makes up a disproportionate share of the total estate value. Often the first step in fairly disposing of an estate is to ascertain its true value. Where property is involved, the appraiser can help determine the true market value. Then, equitable arrangements can more easily be arrived at among disputing parties.
The loss of a loved one is a difficult time and settling an estate from a death, or probate, often requires an appraisal to establish Fair Market Value for the residential property involved. The ethics provision within the Uniform Standards of Professional Appraisal Practice (USPAP) binds the appraiser with confidentiality, ensuring the fullest degree of discretion.
In most cases, a home or other real property makes up a disproportionate share of the total estate value. Often the first step in fairly disposing of an estate is to ascertain its true value. Where property is involved, the appraiser can help determine the true market value. Then, equitable arrangements can more easily be arrived at among disputing parties.
HOME IMPROVEMENTS TO ADD VALUE
Before you decide to sell your home, there are several decisions to be made. First and foremost: "How much should it sell for?" But don't forget there may be other equally important questions to ask yourself such as "Would it be better to paint the entire house before we sell it?", "Should I put in that third bathroom?", "Should I complete my kitchen remodel?" Many things which we do to our houses have an effect on their value. Unfortunately, not all of them have an equal effect. While a kitchen remodel may improve the appeal of a home, it may not add nearly enough to the value to justify the expense. |
Retrospective or Date of Death Appraisal
A Date of Death (DOD) appraisal refers to an appraisal that is made Retrospective to the date of passing, based on the Fair Market Value (FMV) of the property, to be used for income tax purposes. A DOD appraisal can be needed when a property owner or member of an entity that owns property dies.
Retrospective Value is generally defined as:“A value opinion effective as of a specified historical date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.”
Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010).
Please call for additional information: (201) 270-8266
A Date of Death (DOD) appraisal refers to an appraisal that is made Retrospective to the date of passing, based on the Fair Market Value (FMV) of the property, to be used for income tax purposes. A DOD appraisal can be needed when a property owner or member of an entity that owns property dies.
Retrospective Value is generally defined as:“A value opinion effective as of a specified historical date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.”
Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010).
Please call for additional information: (201) 270-8266