Real estate appraisal reports are written for many purposes, and in most cases you may decide which appraiser to hire.
Buying and Refinancing a House
The most common reason for an appraisal is when you borrow money. The lender making the loan in purchase and refinance transactions will want assurance that the property has adequate value to secure their loan. Current lending law regulates the selection criteria for these appraisers and does not allow the borrower to pick the appraiser.
Trusts and Estates
The creation and management of trusts and estates often require appraisals to document the process and establish and modify the cost basis when a death occurs. The appraiser is selected by the individual, his attorney or investment counselor.
Divorce and Partnership Dissolution
Appraisals are typically required when there is real estate to be divided or sold due to divorce or the end of a partnership. Many times one party may wish to buy out another and an appraisal is used to establish the fair market value. The appraiser is selected by one of the parties or their attorney.
Property Tax Appeal
Property tax appeals are often strengthened with a professional appraisal report. With values having fluctuated significantly over the past few years, it's a good idea to review your assessed value and request a property tax reduction when warranted. The appraiser is selected by the property owner.
Charitable Contributions and Gifts to Family
Appraisal reports document the value of charitable contributions where a tax deducution will be taken and gifts of real estate to relatives which may have gift tax implications. The appraiser is selected by the individual, tax preparer or investment counselor.
Buyers and Sellers
Cash buyers who want a professional assessment of a properties value before closing escrow and sellers who want an unbiased opinion of market value to assist in establishing a listing price also obtain independent appraisal reports. The appraiser is selected by the individual buyer or seller.
Big Bear Appraisal Specialist