Selling
You’re ready to upgrade, downsize, or move across the country to be near the grandkids. Whatever your reasons for moving you need to know the value of your property so you can sell it. You may think you have an idea of what it’s worth, however, you may have sentimental attachments that inflate your opinion of the value of your home, or stigmatized memories that make you think less of your home. An appraisal will give you an accurate, unbiased opinion of current market value so that you can determine a realistic listing price for your property.
Buying
Whether you’re a first-time home buyer, are buying a vacation home, or are purchasing an investment property, you need to know that what you are buying is worth what you are paying. Your money is hard earned, and you want to know that you are getting a good deal. An appraisal will help you determine a realistic negotiation price when planning your offer.
Estate Planning
There are several situations in which you may need an appraisal of the assets in your estate, including your real estate. You may be getting ready to retire, you may have had a death in the family, maybe you’re planning which assets go to which beneficiary, or maybe you just inherited a property. In any case, your accountant or tax professional will most likely recommend that you get an appraisal on any real estate that you own. In some circumstances an appraisal will be the determining factor in setting the tax basis for your property, it can help determine the allocation of distributions to beneficiaries, and it can help determine the gains or losses on the sale of a property in a trust.
Divorce Settlement
California is a Community Property state, where (typically) all property is split equally between spouses in a divorce. In some cases, one spouse will buy the other out or more commonly a judge will order property to be sold and the profits split between the two parties. In either case, an appraisal will be needed to provide an accurate current market value for the property. A divorce can often be a difficult and trying time for all the parties involved, but one part of the process that doesn’t have to be stressful is knowing that you have an unbiased third party valuing the property.
Partnerships and Tenancy in Common (TIC)
An appraisal is an essential tool when forming, dissolving, or buying out another party in a partnership or TIC. If you own a property with another party, you’ll want to know what each parties’ specific share, or interest, in that property is.
Tax Dispute
In rare cases you may get your property tax bill and disagree with the value established for your property. You would reach out to the County Assessor and discuss the situation with them, then, if you cannot come to an agreement, you can appeal their opinion of value. This is a long and arduous process, however, one of the key factors is obtaining an independent appraisal to submit to the County for review. It is noted that there are several steps to take with the County prior to ordering an appraisal, so always start with the County Assessor’s office prior to contacting an appraiser.
