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Real Estate Appraisal Services
What is a real estate appraisal
A real estate appraisal is the process of estimating the value of a residential property. It is typically conducted by a qualified and licensed professional known as a real estate appraiser. The purpose of a real estate appraisal is to determine the fair market value of a property, which is the price at which it would likely sell between a willing buyer and a willing seller in an open market.
While the general process of an appraisal is the same there are many reasons why someone could need an appraisal. Some of the appraisal services we offer are:
Appraisals For Mortgage and Refinance Purposes
A home appraisal is typically required by mortgage companies for a purchase or a refinance. Some mortgage companies use an Appraisal Management Company to order the appraisal and some use their own staff appraisers. Regardless most mortgage lending transactions will require an appraisal before they issue a large loan amount or adjust the home's current interest rate to verify the home's value. The last thing they want is to loan out more than the home is worth. Therefore, an appraisal is a professional assessment of a home's value.
Employee Relocation
A relocation appraisal can provide valuable insights and benefits for both the employee who is relocating and the company involved. Here are some of the advantages of obtaining a relocation appraisal:
- Determine Fair Market Value: A relocation appraisal helps in determining the fair market value of the employee's current home. This is essential for setting an appropriate asking price when selling the property. It ensures that the employee does not overprice or underprice the home, increasing the chances of a successful sale.
- Accurate Pricing: By understanding the current market conditions and analyzing recent comparable sales, the relocation appraisal helps establish a competitive listing price. Pricing the property right can attract potential buyers quickly, reducing the time it takes to sell.
- Faster Sales Process: Knowing how long it might take to sell the home is valuable information for both the employee and the company. A relocation appraisal considers market trends, demand, and other relevant factors to estimate the likely time frame for selling the property. This allows for better planning and decision-making during the relocation process.
- Negotiation Tool: The appraisal report serves as a credible document to support negotiations with potential buyers. It provides an independent, unbiased assessment of the property's value, helping both parties arrive at a fair agreement.
- Cost Savings: Companies providing relocation assistance can benefit from a relocation appraisal by gaining insights into the property's market value. It helps them allocate appropriate resources and make informed decisions regarding relocation packages and reimbursement policies.
Overall, a relocation appraisal enables the employee and the company to make well-informed decisions based on the property's value, market conditions, and projected sales timeline. It streamlines the relocation process, reduces uncertainties, and increases the likelihood of a successful and smooth transition for both parties involved.
PMI Removal
Private mortgage insurance is a type of insurance that protects the lender if the borrower defaults on their mortgage loan. It is typically required when the borrower makes a down payment of less than 20% of the home's purchase price. By obtaining PMI, the borrower is allowed to make a smaller down payment, which can be beneficial for those who don't have enough savings to make a larger down payment.
As the borrower makes regular mortgage payments and builds equity in their home (the difference between the home's value and the outstanding loan balance), they may reach a point where the equity exceeds 20% of the home's value. At this stage, the borrower may be eligible to request the cancellation of PMI.
Cancellation of PMI typically requires meeting certain criteria, such as having a good payment history, being current on mortgage payments, and providing evidence of sufficient equity in the property. An appraisal can provide this proof of equity.
The specific requirements and processes for canceling PMI can vary depending on the loan type, lender, and applicable laws or regulations. It's important for borrowers to review their mortgage terms, consult with their lender, and understand the specific guidelines regarding PMI cancellation to take advantage of potential savings as they build equity in their home.
Estate Planning/Probate/Date of Death
An appraisal for estate planning purposes is valuable for several reasons:
- Accurate Valuation of Assets: A real estate appraisal helps determine the fair market value of your real estate. This valuation is crucial for estate planning, as it establishes the true worth of your real estate assets for tax and distribution purposes.
- Estate Tax Planning: Estate taxes are levied on the transfer of property upon an individual's death. The value of your assets, as determined by an appraisal, perforemed by a professional appraiser, is essential for calculating potential estate tax liabilities. Accurate appraisals ensure that the estate's value is properly assessed, enabling effective tax planning and potentially reducing estate tax burdens.
- Equitable Distribution: An appraisal helps ensure the fair and equitable distribution of real estate assets among beneficiaries. By accurately valuing your assets, you can create an estate plan that allocates your property in a manner that aligns with your wishes and avoids disputes among beneficiaries.
- Executor's Responsibilities: The executor of your estate is tasked with administering your assets and fulfilling your wishes as outlined in your estate plan. An appraisal provides a documented valuation that helps the executor navigate the distribution process accurately and responsibly.
- Documentation for Legal Purposes: An appraisal report serves as important documentation for legal purposes. It provides evidence of the fair market value of your assets at the time of the appraisal, which can be useful in legal proceedings, probate, or disputes related to your estate.
By obtaining appraisals for estate planning, you can ensure that your assets are valued correctly, minimize tax liabilities, facilitate fair distribution, and create a well-organized estate plan that aligns with your wishes. It's advisable to work with qualified appraisers who specialize in valuing specific types of assets to obtain reliable and professional valuation reports.