Client Connect

How Much Does a Date of Death Appraisal Cost?

brigid@connectappraisal.com (Brigid Motta) — Fri, 23 Feb 2024 17:16:44 GMT

A few key pieces of information will give you a customized quote.

It’s the number one question from clients who need a date of death appraisal, and often the first thing they say after we answer the phone, but there isn’t one answer.

Our report pricing is based on the report type and complexities of the property. Here’s why we ask for the property address and appraisal need, and no, it’s not to be nosy.

Why do we ask for the property address?

When we ask for the address, we search across databases to find the property. These databases provide us with pertinent information on the property, allowing us to check for a few different items that impact the cost of the report.

Is it a residential property? We’re licensed as residential appraisers, so we can only appraise single-family residences (which includes co-op or condo apartments), or multi-family homes up to four units. If the property is a commercial property, we can’t appraise it, but we can refer you to our partner, who is a fantastic commercial appraiser!
What is the property type? Single-family homes are less complex than multi-family homes. And in some regions that we cover, multi-family homes are very uncommon. A property’s uniqueness contributes to how complicated it will be to complete the report.
Is the property luxury or waterfront? Is the home very large? Is it on a large piece of land? Is the lot just undeveloped land? All these elements, plus a few other characteristics, can make a property more difficult to find accurate sales comparables. When it's more difficult to find sales comparables, the report takes more time to complete.

And just like if you called a contractor to build you a deck; the larger the deck, the higher the cost -- as materials and labor charges would increase. The same elements apply for the cost of your report. If it’s going to take more time to appraise and finalize the report, the price of the report will reflect the extra expertise and time needed to prepare your date of death residential real estate appraisal report.

Why do we ask for your appraisal need?

Asking why you need the appraisal allows us to understand which report is going to be best for you. We offer restricted and full general-purpose reports for our estate clients, and these reports are not necessarily one-size-fits-all.

What is the same between the reports?

These two reports both include the appraiser’s inspection of the property, as well as the same valuation and sales comparables. Choosing a full report will not impact the opinion of value!

What’s different between the reports?

The restricted report is around 7-10 pages, while the full report is around 20-25. The restricted report summarizes information that the full report expands upon. The full report also has language that meets IRS and court requirements.

When should I get a full report, and when should I get a restricted report?

A restricted report is perfect for clients who are gathering information, completing a tax return, and working amicably among heirs.

A full report is accepted by the IRS and Courts and will be required in the unlikely event that the estate is audited, as well as if there is any litigation. If you are filing for a gift tax or donation, the full report will also be needed for IRS compliance.

But for most clients, the restricted report will fulfill all the needs to close out a loved one’s estate, as well as make plans for the property.

What if I don’t know which appraisal report I need?

For clients who order restricted reports, you can upgrade the report at a later date by paying the price difference between the reports when a full report is needed. This saves you from paying for information you don’t need “just in case.” If your needs change in the future, we use the data collected at the time of the original inspection and update the report. It prevents you from needing to pay for a completely new report.

What happens if I need an appraisal report for a property that was sold to a third party?

This does happen. For a variety of factors relating to the estate, it’s not uncommon for an executor to be told they need a date-of-death appraisal until after a property has sold. We can complete a desktop appraisal in those circumstances, using information we gather from public records and the MLS listing. If you know that you’ll need a desktop appraisal, be sure to mention it at the top of the phone call so we can account for that when quoting the report.

As you can see, there are a lot of contributing factors that go into the cost of an appraisal. By giving us a bit of information we can give you an accurate quote in just a few minutes.

Ready to order your date of death or estate appraisal report? Give us a call now !

Divorce Appraisal: Navigating the Process

brigid@connectappraisal.com (Brigid Motta) — Fri, 28 Jul 2023 18:44:14 GMT

Divorce can be a tumultuous journey, fraught with emotion and complexity. One of the main hurdles to overcome is the equitable division of shared assets, specifically real estate properties.

To ensure fairness in this process, obtaining a real estate appraisal is often an indispensable step. Experienced appraisers can help with property evaluations for divorcing or separating couples. Here are important things to consider.

Why You Want a Home Appraisal for a Divorce Settlement:

A divorce property appraisal acts as an unbiased assessment that pinpoints your property's current market value. Having a home appraisal during the divorce process paves the way for both parties to make well-informed choices throughout the proceedings by offering an accurate depiction of their property’s worth.

Determining When You Need Property Evaluation:

If you and your soon-to-be-ex share ownership over any piece of land – whether it's your marital home or vacation retreat - there will likely come a point where you'll need an appraisal for the divorce. This appraisal aids in establishing clear-cut boundaries around each party’s stakes while dividing marital assets.

What Happens During an Appraisal:

An on-site examination of the property is done by a qualified appraiser, who takes measurements, pictures, and lots of notes on the features of the property and its condition. This information is then brought back to the office, where we use the information gained during the inspection to compare your property to recent sales in your neighborhood and determine its value.

How Long Does an Appraisal Take:

At Connect Appraisal, we are generally able to schedule an appraisal appointment within a few days of the first call, pending everyone’s availability. The appraisal appointment itself should take less than an hour, depending on the complexity of the property. And then the report will be ready within 7 days.

Who Pays for the Home Appraisal in a Divorce:

Most often, we are paid from joint finances, as we are often hired by couples going through a mediation or collaborative divorce. But generally if one party hires us, then that is who pays.

Why You Should Consider Hiring a Seasoned Appraiser:

Engaging the services of an expert divorce appraiser, especially one with extensive know-how in residential property appraisal, is crucial. At Connect Appraisal, we’ll deliver unbiased and precise valuations - invaluable whether you find yourself in court or striving to agree on a fair settlement in mediation. An appraiser who promises that they will deliver a favorable valuation for one party is one who will probably have their appraisal thrown out by the court.

The Role of A Home Appraisal in Mediation Divorce:

In mediation divorce – where both parties join forces to reach consensus outside the courtroom - typically only one real estate appraisal suffices. This lone appraisal can act as a foundation for dialogue and bargaining during the mediation phase.

Advantages of Opting For One Appraisal:

• Cost-Efficiency: Choosing one appraisal over two can lighten financial burdens for both parties, making it more budget-wise during tough times.

• Smooth Sailing Process: Having just one valuation report eases up the divorce proceedings by paving the way for effortless negotiations.

• Fairness Assured: By settling on a mutually agreed appraiser, they can be at peace knowing that they have obtained an impartial assessment of their property's worth.

Hiring an Appraiser - The Right One:

When scouting for an appraiser, it's vital to verify their credentials. You can search that they are a licensed appraiser directly from your state’s department of licensing. Ask if they have any designations from The Appraisal Institute. Ask if they’ve testified in court for divorce cases, and if they are familiar with your type of property. You could lean on your attorney, divorce mediator, or realtor to point you towards qualified professionals.

Supplying Precise Property Details:

To get a pin-point accurate valuation, arm your appraiser with every detail about your property that might impact its worth - from recent renovations and upgrades to major structural changes. Always make sure to check with your family law attorney if the appraiser needs to use the current date or the date of separation as the effective date of the appraisal.

Decoding the Appraisal Report:

The report furnished by the appraiser will be loaded with details about your house – right down to their estimate of its market value. The report should be written in plain English, so all parties can understand. Take the time to comb through this report carefully and direct any questions to your attorney.

Can You Refuse an Appraisal Amount in a Divorce:

While we stand behind the impartiality and fairness of our appraisals, we make no claims to the quality of anyone else’s work. If one party obtains an appraisal that the other party feels is wildly off base, another appraiser can review the report, or the grieved party can obtain their own divorce appraisal to challenge the original.

Other Uses of Real Estate Appraisal Beyond Divorce Cases:

Not only are property appraisals used during divorces but they are also used for planning estates, computing taxes, refinancing loans or selling off properties. Having an estimated value of real estate can come in handy.

A real estate appraisal plays an important role when separating couples need equal distribution of assets. Whether it’s a single property that one partner will stay in, or multiple properties that are being divided among all assets, understanding the fair market value of shared property is vitally important during the divorce process. Knowing how to find an appraiser and what to expect during the divorce appraisal process can add peace of mind to what is for most people, a new process during an already emotional time.

If you’d like to get one step closer to completing your divorce, please contact us for a quote for your home divorce appraisal.

Why Do I Need a Date of Death Appraisal?

brigid@connectappraisal.com (Brigid Motta) — Wed, 26 Jul 2023 18:25:08 GMT

Understanding The Benefits of Real Estate Appraisal After Inheriting Property

As experienced residential real estate appraisers, we often assist people after the death of a loved one to provide a Date of Death Appraisal . Some clients are referred to us by their estate attorneys or tax advisors, and some find us after being mandated by court to obtain an appraisal for estate purposes. Whether you’ve inherited property or are assisting someone who has, it’s important to understand the many benefits and uses of this type of appraisal. This article will break down why getting that date-of-death valuation - especially when dealing with the IRS - is crucial if you've got some inherited real estate in your hands.

1. Getting It Right for Estate Taxes :

When someone close passes away and leaves behind their home, it falls upon us to determine its worth at the time they died. The IRS isn’t interested in guesswork here – they demand an accurate assessment as part of settling any estate taxes due. A proper IRS date-of-death appraisal ensures there’s no risk of misjudging the property’s worth — avoiding unnecessary stress over potential tax liabilities later down the line.

2. Understanding Stepped-Up Basis :

Inheritance typically comes with something known as "stepped-up basis." Here's how it works: instead of inheriting Grandma’s original purchase price from back in 1930s, her place gets valued at current market rates when she died—this becomes your new base level or “basis.” If you sell that property, any capital gains tax owed would be figured based on how much more than this recent basis amount you managed to sell—not what Grandma originally paid all those years ago! To do this right—and possibly save yourself tons in future capital gains taxes—a legit date-of-death appraisal completed by a Certified Residential Appraiser is key—it helps nail down that stepped-up basis accurately.

3. Fair Split Among Heirs :

When it comes to divvying up a property among multiple inheritors, an estate date of death appraisal is your best bet for ensuring the value of the place gets judged accurately, leading to a fair slice for everyone involved. As real estate appraisers pledge to be non-biased, a professional appraisal will be recognized if the will is challenged in court and can help clear any disagreements that might pop up during the distribution phase.

4. Value of Estate For Probate Proceedings :

Probate is the legal process that occurs after a person’s death. It involves validating the will, settling any debts, and distributing the estate assets to the beneficiaries. An accurate date-of-death value of the estate is an essential part of this legal process.

5. Date of Death Is Important :

During the process of completing an estate appraisal, we will have to use the date of death, which is classified as a retrospective date. Unlike conventional appraisals that calculate current market values, this technique takes us backward in time to pinpoint an accurate valuation on the date of death. This alternate valuation date is why estate appraisals are vital for tax-related matters - particularly when filing estate taxes and setting up stepped-up bases for properties inherited. It does not matter when you order the appraisal, as the date of death is a fixed point in time. No matter how long it takes to settle the estate, the appraisal will always be valid for this purpose.

6. Money Moves Made Smarter :

Having hard numbers from a date-of-death evaluation empowers heirs to make financially sound decisions regarding their newfound real-estate riches. Should you sell the inherited property? Move in and make it your primary residence? Rent it to tenants or vacationers as an income-producing property? Whatever path chosen, knowing a property’s true worth plays a vital role sketching future financial blueprints.

7. Resolving Disputes with the IRS :

In some cases, the IRS may challenge the reported value of the inherited property. Having a well-documented and expertly prepared estate date of death appraisal can serve as valuable evidence to resolve any discrepancies and avoid potential penalties or audits.

8. Avoiding Overpaying on Taxes :

Overvaluing an inherited property can lead to higher property taxes for the beneficiaries; But undervaluing the property can result in increased capital gains tax after its sale. A precise estate date of death appraisal helps strike the right balance and ensures that taxes are appropriately assessed.

9. A Professional Appraiser is Essential:

When seeking a date of death appraisal for inherited property, it is vital to engage the services of a qualified and experienced residential real estate appraiser. An expert appraiser knows how different factors impact the value of a property and will provide an honest and non-biased valuation.

10. Appraisers with SRA Designation Are Even Better

For estates that may be contested amongst heirs or will likely face scrutiny from the IRS, you will want to find an appraiser with an SRA designation from The Appraisal Institute . These SRA Appraisers are automatically considered qualified experts by the IRS and need no further credential validation. These appraisers usually have an extra 3-5 years of appraisal education and undergo a rigorous peer-review process to earn their designation. Only 1% of all appraisers in the United States have obtained this designation.

You may have wondered "why do I need an appraisal for inherited property?" Obtaining a date of death real estate appraisal is not only crucial for IRS compliance but also for making informed financial decisions and ensuring a fair distribution among heirs. If you're wondering when a date of death appraisal should be done, we recommend doing so as soon as possible, as it can truly guide many decisions while settling an estate. An accurate appraisal can save you from potential tax burdens and legal disputes while providing you with the knowledge needed to manage the inherited property wisely. For peace of mind and financial security, it is wise to enlist the services of a professional appraiser when dealing with estate matters.

If you need a Date of Death appraisal for a property that you’ve inherited, please order now.

10 Non-Mortgage Reasons to Hire a Real Estate Appraiser

brigid@connectappraisal.com (Brigid Motta) — Tue, 16 May 2023 14:50:49 GMT

There are more reasons to use an appraisal service than just a mortgage!

Most people may only be familiar with a real estate appraiser when their mortgage company ordered one prior to giving final approval of the mortgage, but there are so many other applications where a real estate appraisal is beneficial or necessary. Here are ten reasons why the clients of Connect Appraisal call us to order a valuation of their home.

Divorce and Separation : When a couple needs to divide their assets due to divorce or separation, an accurate and honest valuation of their real estate holdings is crucial. Connect Appraisal is experienced with working with separating couples, understanding the unique needs during high-emotion events. We have worked with couples going through mediation divorces, collaborative divorces, and litigious divorces. Whether the couple is working amicably or not, a non-biased home valuation is essential for the separation of assets.

Estate : When a homeowner dies, oftentimes a home appraisal is ordered. Whether one heir wishes to buy out the property from others, or a valuation is needed for an estate tax, Connect Appraisal is your resource for estate valuations. We also work with estate attorneys who assist clients with estate planning needs.

Bankruptcy : Connect Appraisal is recognized by the State of New York as a court-certified appraiser. We recommend that a home appraisal is done prior to filing Chapter 7 bankruptcy or beginning a Chapter 13 bankruptcy repayment plan.

Immigration: In matters of immigration, property owners must include home valuation in applications. Whether the property owner is the immigrant or their sponsor, accurate property valuations are needed. We also offer annual updates, where after an initial inspection of the property, the value matched to the current market conditions. This is an affordable option for property owners who anticipate a long-term valuation need.

Financial Planning and Trusts : When looking at one’s needs for long-term care and what is bequeathed in their will, a trusted financial planner may recommend that all properties have accurate valuations. Connect Appraisal can work with single and multi-property portfolios. We cover the Metro New York area, allowing vacation homes and residential rental homes to be managed by our office.

Expert Witness Service : When residential property is part of a legal battle, your appraisal needs to be able to stand up to a determined opposing attorney. Our commitment to honest, non-biased appraisals backed up by strong data allows us to rigorously defend our valuations. We are experienced in providing written evidence and court testimony.

Pre-Listing and Pre-Purchase : According to most realtors, the worst thing for a seller is to have a stale listing. If a home is listed too high and reduced multiple times over, prospective buyers will see this as a warning sign. A pre-listing appraisal is an affordable way to make sure that a property is valued correctly. This service is available to agents and homeowners. If you are the buyer and are unsure if your over-asking bid is too high for a mortgage, a pre-purchase appraisal can offer you peace of mind that the mortgage appraisal will go through.

PMI Removal : All mortgage lenders are required to offer clients the opportunity to remove any PMI from their loans when certain thresholds have been met. Changes to the home value can allow you to remove PMI early. Speak with your lender as to whether a residential real estate appraisal is right for your situation to remove PMI.

Land and Pre-Construction : A key component in real estate appraisals is determining the “highest and best use” of a property. Factoring in zoning restrictions, deed restrictions, and external factors such as the neighborhood makeup can help guide builders and flippers to know what application will result in the highest return on investment. Just because a property can be built on a lot, doesn’t mean that anyone will buy it! Our experienced appraisers can look at the data and provide analysis to guide your decisions before you break ground.

Property Tax Challenge : The two guarantees in life – death and taxes. Up to 60% of American homes are overvalued by assessors, according to some estimates. When mass appraisals are done by assessors, certain unique aspects aren’t always taken into consideration. If your home value comes in too high, contact Connect Appraisal. We are experienced in providing the reports that municipalities and courts will accept to dispute an overvaluation.

While this list is not exhaustive it covers many applications for a private or legal residential real estate appraisal that Connect Appraisal offers our clients daily. If you, or a client, needs an honest appraisal that can be backed up by data, please call us today !