*Due to an increase in fees - All Credit Cards/Debit Cards transactions will be subject to a 2.9% surcharge

Commercial & Residential Real Estate Appraisals

Serving The Entire New York Metropolitan Area

50 Court Street, Suite 508,

Brooklyn, New York 11201

info@eastcoastappraisal.com

CALL US: (800) 228-2158 Get a Fee Quote

Blog Layout

6 Times When You May Need a Real Estate Appraisal

Admin • Apr 12, 2021

Real estate is one of the biggest investments made by either a business owner or a homeowner. This means that appraisals are a vital part of the puzzle. But when should you seek out an appraisal and why? Here are six of the most important times to do so.

1. Buying a House or Building

Certainly, the most common time to get an appraisal is when you buy property. The appraiser provides an independent analysis of the property's strengths and weaknesses - especially complex commercial properties - and how these will relate to its value. It allows you to negotiate with more confidence. And a lender may or may not require it in order to protect their own interests.

2. Doing Estate Planning

To properly plan the division of your estate, no matter what your goals for the assets, you need to know how much your assets are worth. For instance, if you plan to divide up your assets among multiple children or grandchildren, an even split may not be the best approach. Instead, understanding the value of each asset allows you to divide individual items in the most equitable or fair manner overall.

3. Refinancing Your Property

Refinancing your mortgage can be a great way to save a lot of money, both in your monthly payments and in interest over the life of the loan. However, tapping the value of that property requires knowing what the value is at the time of refinancing without actually selling it. You may have trouble qualifying if the property is undervalued, and the lender may not approve things if it seems overvalued.

4. Appealing Tax Assessments

Property tax assessments are based on the value of the home or commercial building. While you can't do anything about the actual tax rate assessed on your real estate, you can take steps to make sure that it's based on an accurate assessment of value. To appeal to the local assessor's office, though, you'll need to have the strongest possible case for revaluation.

5. Inheriting Property

You generally aren't required to get an appraisal when you receive an inherited property, but it's a good idea for two reasons. First, future taxation on the property if you sell or divide it is generally based on its value on the date of the owner's death (or an alternate valuation date). And the best way to prove that value and have it in writing for future use is to have a formal appraisal. Second, understanding the true value of an inherited asset is important for each new owner. You need this in order to buy appropriate insurance, to share it with joint heirs, and to do your own estate planning.

6. Claiming Bankruptcy

Complex bankruptcy cases may call for a real estate appraisal to get an accurate idea of the value of a home that's an asset in the claim. Probably the most common situation is when a claimant wants to strip a second mortgage and turn it into an unsecured loan. To do this, the value of the attached property must be less than the amount of the first mortgage. A current appraisal can prove this to the court.

Where to Start

Clearly, real estate appraisals come in handy at many points of a person's life. Whether you want to buy, sell, insure, or borrow, you need to know the true worth of this large-scale investment.

New York property owners and buyers can rely on the quality services of East Coast Appraisal Service . With 30 years of experience, we will provide you with the confidence and information you need to make the best decisions. Call today to make an appointment.

Newer Post >