Mortgage - New
mortgage, refinance, home equity
loans, in most cases require a
full appraisal and are requested
by the lender providing the
funding.
Pre-Listing -
Whether selling a property
by-owner or with an agent, a
professional appraiser is
objective and will tell you what
you need to know, not just what
you want to hear, to assist in
determining a realistic price.
Pre-Purchase -
Knowing what the actual market
value of a property, determined
by a professional appraiser with
no vested interest, prior to
making an offer, can aid
tremendously in negotiations to
avoid costly mistakes.
PMI Removal -
Under the Homeowners Protection
Act, PMI (private mortgage
insurance) can be eliminated
from the mortgage loan when the
LTV (loan to value) ration of
the principal balance reaches
80%.
Property Tax Disputes
- Tax assessment challenges need
information and data from a
creditable source to carry
weight when appearing before an
appeals board.
Estates -
Estate settlements require an
appraisal to establish the fair
market date of death value, of
real estate for potential estate
taxes. A retroactive appraisal
utilizing contemoraneous sales
is done for this purpose and in
some cases a current appraised
value is needed for the
distribution or disposal of a
deceased's assets to their heirs
or beneficiaries.
Divorce/Bankruptcy
- Finalizing a divorce requires
many decisions regarding assets.
With real estate it's "Who gets
the house?" with two options
being sell and divide the
proceeds, or one can "buy out"
the other. As with bankruptcy
cases, a professional appraisal
is needed to meet the
requirements of the courts and
various agencies.
Condemnation -
Sometimes called "eminent
domain" is when the government
wants to condem your property or
take it away from you and use it
for other purposes. A
professional appraisal on your
behalf is powerful and useful
evidence of what you're entitled
to, and protects your rights.
Bail Bonds - In
the event of an arrest, quite
often the amount of bail needed
exceeds the amount available. In
such circumstances the market
value of real estate can be used
as collateral to obtain a bail
bond.
Relocation -
When relocating to a new area
for work, some employers offer
relocation assistance. When a
property owner or their employer
needs an appraisal of the "old"
home, it's not for the fair
market value, but for the
anticipated sales price. Usually
for as soon as possible but not
to exceed 120 - 180 days.
Foreclosure -
For a property in foreclosure,
you need to know the difference
between fair market value and
quick disposition value, and to
determine an acceptable short
sale amount to know the
potential charge-off liability.
Bank Owned -
Often referred to as Real Estate
Owned or REO properties that
have already reverted back to
ownership of the bank. Three
values are needed for
comparison: As-is, As-repaired,
and quick sale along with a
condition report and occupancy
status.
Investments -
Investment properties or income
producing properties (rentals)
often need more that just the
market value. For a purchase, an
investor would also need to know
the amount of cash flow, rental
survey, operating income
statement, itemized depreciation
schedule, market rents and
trends, cost segregation, and
other information and data
needed for a profitable
investment.
Retroactive Appraisal
- This is an appraisal with the
effective date (or valuation
date) being for given date in
time, prior to the current date
the report is prepared. A common
purpose is for Date Of Death
values, but can also be used to
determine the market value of
real estate purchased or sold
several months or (subject to
available data) several years
ago.
