Property Appraisals – An Indispensable Tool for Estate Settlements

It is often difficult to settle an estate after the death of a loved one, especially if there is any real property involved. Utilizing the services of a professional real estate appraiser is an important and usually necessary to help everyone involved, from the heirs of the estate to tax agencies, agree on a property’s value.

If real property of any kind is part of the estate, fair market value must be assessed for many different reasons. For instance, a property valuation must be completed in order to correctly divide its worth among multiple heirs. Market value must also be calculated for tax purposes, and to determine the total value of the estate in order to assess inheritance tax liability, if applicable.

Another highly beneficial use of a property appraisal in an estate settlement, however, is that it removes the emotion from the assessment process and halts potential speculation on the part of each heir. With official appraisal documents in hand, complete with detailed physical descriptions and comparable local property values, not much room is left for differing opinion or conjecture on how much the property is really worth. All parties are able to move on knowing they have hired the services of a certified expert who, with careful and unbiased deliberation, set forth the most accurate fair market value possible.

Absolutes are not possible when appraising an estate. There can be unknown factors that can affect the appraised value. The recent recession has effectively showed that an appraised value can quickly be rendered inaccurate or obsolete based on circumstances outside of the appraiser’s control. However, most estate settlements do rely heavily on valuations established by Estate appraisals.

Upon completion of the appraisal, the appraiser presents itemized documentation divulging the process of the value determination of the subject property, showing how the market value was calculated. Contingent on the type of property being appraised and the purpose of the appraisal, there are many standard forms used in the industry.

Property appraisals are not an exact science. For the most part, property values are based on a set of variables, such as square footage, number of rooms, lot size, amenities, age of the property, etc. These variables are compared to other properties with similar statistics, that have been appraised recently, and values are adjusted for differences between the properties.

Appraisals are an important aspect of amiable, effective estate settlements. Because a professional appraiser is an impartial expert trained extensively in the field of property value assessment and has nothing to gain or lose in the final determination of value, he or she is a valuable asset to the heirs of any estate. There is even greater benefit in employing a local appraiser who is familiar with the surrounding area, the environment, and any other factors that may affect property value.

Knowledge, experience and impartiality are the best tools in effecting a just determination of real estate value and estate settlement for the benefit of all the heirs. Employing a real estate appraiser to make sure the estate’s real property is as correctly valued as possible can help give everyone who is involved peace of mind.

Market Appraisal Group has years of experience in providing real estate valuation services for estate planning, PMI removal, and divorce and settlement disputes in the San Francisco Bay area. This article powered by SEO 2.0 Services