Appraisals, why do we need them? Here are some of the more common reasons.
- Buying or Selling Property: Appraisals help determine the fair market value of a property, aiding buyers and sellers in setting a reasonable price.
- Securing a Mortgage: Lenders require them to ensure the property’s value is sufficient collateral for the loan amount.
- Refinancing: Homeowners often need them when refinancing their mortgages to determine the current market value of their home.
- Estate Settlement: Appraisals are necessary to determine the value of real estate assets when settling an estate, such as during probate proceedings.
- Divorce Proceedings: When dividing assets, appraisals can establish fair market value for equitable distribution.
- Property Tax Assessment: Local governments may use appraisals to determine property taxes based on current market value.
- Insurance Purposes: Insurers may require an appraisal to establish the replacement cost of a property in case of damage or loss.
- Home Improvement Planning: Homeowners might get an appraisal to understand how renovations or improvements could affect their property’s value.
- Litigation: In legal disputes involving property, appraisals provide impartial assessments of value, supporting court proceedings.
- Investment Analysis: Investors use appraisals to evaluate potential returns and risks associated with real estate investments.
Each of these situations requires an accurate appraisal conducted by a qualified professional to ensure the property’s value is assessed correctly based on current market conditions and specific criteria relevant to the purpose of the appraisal. Certified real estate appraisers go through many hours of pre-licensing education, continuing education, and training hours in the field before they reach full certification. With a constantly changing real estate industry, it is important that your appraiser is well-trained and competent in order to provide you with accurate and credible results. Michael Willis is a certified appraiser with over 20 years of experience in the San Diego real estate market. He serves the entire county of San Diego and specializes in estates and trusts, date of death, gift tax/inheritance, and retrospective appraisals.