Protecting Your Interests
An appraisal can be key to protecting your interest in many financial dealings. When there is a question as to the value of your property, there is also a risk involved.
Value oriented risks may include:
- selling too low
- paying too much
- being over or under insured
- receiving a fair share in the division of property
- paying too much tax
- being audited when claiming a deduction for a charitable contribution or a business loss
A professional appraiser helps you manage your interest by providing a well developed and documented unbiased estimate of value upon which you can base your financial decisions.
What are Appraisals Used For?
Appraisals are used for many purposes. Some common uses of appraisals are:
Most mortgage transactions involve an appraisal. Generally, financial institutions will only approve a mortgage after contracting for an independent appraisal to document the value of the property which serves as collateral for the loan.
Effective 2007, taxpayers are required to obtain a qualified appraisal, completed by a designated appraiser, for which a deduction of more than $5,000 is claimed for donated property.
Investors generally require professional appraisal services prior to acquiring investment real estate, art or other property.
Appraisals are often requested by insurance agencies to determine the insurable value of the asset.
Typically an appraisal is conducted establishing a retrospective value of the property as of the date of death.
What is an appraisal?
An appraisal is a professional appraiser's opinion of value. The preparation of an appraisal involves research into appropriate market areas; the assembly and analysis of information pertinent to a property; and the knowledge, experience, and professional judgment of the appraiser.