Tag: best bellevue realtor

Is Your Dream Home at Risk? Understanding the Impact of Climate Change on Real Estate

On By Rainier EstatesIn Real EstateLeave a comment

Why Climate Change is the Hidden Factor Shaping Your Home ownership Dreams

As a top selling broker at Realogics Sotheby’s International Realty in Bellevue, Washington, I am frequently asked by potential buyers, “Do you think I’ll ever be able to buy a home here?” And frankly, it’s not an easy question to answer. Housing prices in the Seattle area continue to climb, making home ownership feel like an elusive dream for many. The demand far exceeds the supply. People are increasingly willing to look further out in search of a home. They trade shorter commutes for the opportunity to own a home of their own, or even move out of state.

But here’s the twist: the dynamic may be about to shift in unexpected ways. Historically, many buyers have flocked to the Sun Belt, attracted by lower housing prices, better weather, and cheaper insurance rates. However, things are changing due to the effects of climate change. As extreme weather events grow more frequent, areas that once seemed like perfect, affordable places to settle are becoming less reliable, and sometimes, more dangerous.

I came across a thought-provoking article from First Street (firststreet.org) that delves into how climate change and rising insurance costs could fundamentally alter the landscape of real estate over the next 30 years. Here’s what stood out to me:

10 Key Takeaways from First Street’s Research

  1. Climate Risk is Reshaping the Real Estate Market
    Climate change isn’t just about the weather—it’s altering the way we think about where to live. Rising insurance costs and changing buyer preferences influence population movements. These factors also affect property values. This creates a loop that’s transforming real estate across the country.
  2. Rising Insurance Costs
    Insurance rates are rising much faster than mortgage payments. Between 2013 and 2022, insurance as a percentage of monthly mortgage payments more than doubled—from around 7-8% to over 20%. That’s a serious impact on homeowners’ budgets, and it’s only going to continue.
  3. Disruptions in Sun Belt Growth
    For decades, Americans have flocked to the Sun Belt for its sunny weather and low cost of living. But those states, like Texas, Florida, and California, have absorbed the bulk of the country’s natural disaster costs. Climate change is shifting this trend, and people are becoming more cautious about buying property in these regions.
  4. Understanding the Big Picture
    First Street’s Macroeconomic Implications Model (FS-MIM) paints a picture of how climate risks will reshape property values and economic growth. They’re factoring in both the skyrocketing insurance premiums and shifting migration patterns to predict what might happen to U.S. communities in the next three decades.
  5. What Will Insurance Look Like in the Future?
    First Street estimates that by 2055, unrestricted insurance pricing will cause premiums to rise by 29.4%. That’s a combination of catching up for under pricing and climate-related risks. It’s worth noting that insurance premiums are already skyrocketing in some regions.
  6. Insurance Costs Are Skyrocketing in Coastal Cities
    Miami, Jacksonville, Tampa, New Orleans, and Sacramento are seeing some of the most dramatic insurance premium hikes, with increases reaching up to 322% in Miami. This makes owning property in these areas more expensive than ever before.
  7. Where Will People Move?
    Over 55 million Americans are predicted to relocate away from high-risk areas by 2055, including 5.2 million who will make the move as early as 2025. Climate migration is real, and it’s changing the way we think about home ownership.
  8. Diverging Growth Across Neighborhoods
    The report divides neighborhoods into five groups:
    • Climate Abandonment (26%): Areas that will become less desirable.
    • Risky Growth (31%): Areas with some risk, but still growing.
    • Tipping Point (27%): Areas nearing climate-related challenges.
    • Economic Decline (11%): Areas that could face long-term economic struggles.
    • Climate Resilient (5%): Neighborhoods that are expected to thrive despite climate risks.
  9. Economic Strength Isn’t Enough
    It turns out, economic strength alone won’t save an area from population decline. Some currently growing cities may reach “tipping points” where climate impacts outweigh the economic benefits.
  10. The $1.47 Trillion Question
    By 2055, 84% of neighborhoods (or 70,026 census tracts) could see their property values drop due to climate risks. This could total up to $1.47 trillion in devaluation. That’s an alarming number, especially for homeowners and potential buyers.

My take, my answer to locals in the Puget Sound region is this, if you can, buy now, buy here. We are in a great market area with wonderful employers, big employers. Where climate change is surely impacting us, it’s not as stark as many areas. Sure, we have our years of drought and fire dangers due to all our gorgeous evergreen trees. But we also have water and rain. There is dampness & moss, hydroelectricity, and mountains that typically have good snow pack. We are a strong environment, not to mention stunning! If you wish to sell your property, I’ll find you amazing buyers who are hungry to engage in home ownership. My specialty is estates. I assist those looking to downsize. I help those dealing with estate matters. I handle all types of issues from selling the personal property assets to managing the estate process with the trustee. I’m your partner with over 38 years of experience.

Lisa Taylor, Owner & Founder of Rainier Estates (RainierEstates.com) & Top Producing Broker at Realogics Sotheby’s International Realty located in Bellevue, Seattle, Mercer Island, Kirkland, Madison Park & Bainbridge Island. Lisa.Taylor@RSIR.com

Lisa Taylor, Sotheby's Realtor

Emotional and Legal Aspects of Estate Inheritance in WA

On By Rainier EstatesIn Blogs, Estate PlanningLeave a comment

Navigating estate inheritance in Washington State can feel like trying to solve a giant puzzle with many pieces. When someone passes away, their belongings and property must be passed on. Houses, money, and personal items go to family members or friends. But it’s not always straightforward. Some rules and laws determine the distribution. If there isn’t a clear will or plan, it often leads to confusion. This situation can even cause arguments among family members. It’s a time when emotions are already running high, and dealing with these extra challenges can be tricky. It’s crucial to seek help from professionals. They understand these rules and can make a big difference in finding a fair and peaceful solution for everyone involved.

Facing the Complexities of Estate Inheritance in Washington

  1. Legal Maze

Heirs often find themselves entangled in the complexities of probate law. Navigating this labyrinth requires patience and legal guidance to ensure compliance with Washington State‘s specific statutes and regulations.

  1. Emotional Burden

The emotional weight of processing a loved one’s passing while managing their estate cannot be understated. This period demands remarkable emotional resilience. It requires support from family, friends, and professional partners who understand the delicate nature of grief and loss.

  1. Asset Appraisal and Division

Determining the actual value of estate assets and fair division among heirs often sparks tension. Transparent, fair appraisal practices and clear communication are vital to avoid disputes and ensure equitable distribution.

  1. Property Maintenance

Unattended properties can quickly depreciate. To preserve their value, take a proactive approach. Address immediate concerns such as security, maintenance, and eventual sale of real estate holdings.

  1. Personal Property Dilemma

Sorting through personal belongings is an emotionally charged process. Decisions about what to keep, donate, or sell can be difficult, necessitating a thoughtful and respectful approach to personal effects.

  1. Financial Implications

Unexpected financial obligations, including taxes, debts, and ongoing expenses, can overwhelm heirs. Understanding the estate’s financial landscape is crucial to navigating these waters smoothly.

The Role of Expertise

Professional guidance is indispensable in addressing these challenges. Estate planning experts offer the knowledge necessary to manage estate inheritance. Attorneys and specialized services provide the support needed for effectiveness.

Navigating the Journey with Compassion and Expertise

  1. Seek Professional Guidance

Engaging with estate planning professionals early can provide clarity and direction, ensuring legal and financial matters are handled with expertise.

  1. Embrace Support Networks

Lean on emotional and practical support from those who understand the journey. Community groups, counseling services, and professional partners can offer solace and assistance.

  1. Prioritize Open Communication

Maintain open lines of communication among heirs and with professionals. Transparent discussions can prevent misunderstandings and foster cooperation.

  1. Consider Professional Estate Services

Professional estate services can alleviate the burden of tasks. These tasks range from property maintenance to asset liquidation. This allows heirs to focus on healing and remembering.

  1. Plan for the Financial Future

Engage financial advisors to understand the implications of estate inheritance. This includes tax liabilities and investment strategies in Washington. Secure the estate’s legacy for future generations.

Downsizing Seniors

The Ultimate Senior Relocation Service in Bellevue Washington

On By Rainier EstatesIn Happy ClientsLeave a comment

When our team began working with Bob, he felt overwhelmed. He was also excited by the prospect of change. This was after so many years of living in his home. Bob was a hardworking local professor. He and his wife had purchased their family home in Bellevue over 60 years before. They had raised their children there. They made many beautiful memories. They watched as the neighborhood around them changed dramatically from orchards and chicken coops to modern mansions. Bob was now a widower. His children lived in different cities. Bob and his family realized it was the right time for him to move. He decided to relocate to a senior assisted living condo nearby. Rainier Estates was ready to step in and assist with every step of the way!

In the words of Bob’s son Eric, “We interviewed several real estate agents. No one came close to what Lisa and her team were able to provide. They made the home transition smooth for my dad, which was a complicated process. They were present every step of the way. This included closing up the house, assisting with the move, and helping arrange the new apartment. They also donated unwanted goods to local charities and managed the well-strategized sale of our home. And all of that at a competitive price!” 

Step 1: Preparing to Move

After living in his home for decades, deciding what to bring to his new (much smaller) condo was challenging. Our team went through the entire house with Bob. We identified what would fit in his new place. We also determined what he practically needed going forward. We collaborated with a local shredding company. They destroyed any sensitive documents that Bob would not bring with him. This step was taken to protect him from possible identity theft. Bob’s furniture, art, décor, linens, and kitchen items were identified and packed. After this, he was ready to move. 

Step 2: Moving Made Easy

In coordination with his visiting children, our team arrived at Bob’s house in the morning to oversee the move. Bob enjoyed a nice outing with his daughter. Rainier Estates ensured that all his belongings arrived at his new condo. The coordination team unpacked the essentials. These included bed and bathroom linens and kitchen items. Everything was ready for his arrival. In the morning, Bob left his longtime home. In the afternoon, he arrived at his new condo. All his furniture and belongings were ready. Everything was waiting for him to enjoy. Our team also assisted with hanging his art where he wanted. Bob began living his next chapter in no time, and our team began working on everything else. 

Step 3: Estate Liquidation

Bob settled into his new home. After he removed all the belongings he wished to keep, we immediately began preparing the house for an estate sale. We professionally organize, research, tag, price, and host quality estate sales at all of our estate sales. After selling everything for as much as possible, we assist with donations. We also oversee clear-outs for whatever remains. 

Step 4: Home and Property Preparations

We customize our offering based on the needs of our clients. In this case, Bob wanted to sell his home as-is. He wanted to spend as little as possible on improvements. The new homeowner would surely do an extensive renovation. We suggested the best small investments for the most significant impact. We ensured that the home and landscaping were clean and looked their best. Whatever the client wants (as-is or renovated and staged), we make it happen. 

Step 5: Custom Real Estate Marketing Strategy

Lisa Taylor, Founder & CEO of Rainier Estates’ broker & with Realogics Sotheby’s International Realty understands all facets. She understood the unique opportunity this original 1960s home in central Bellevue offered buyers. Lisa and our team crafted a compelling marketing strategy. It emphasized the qualities of this rare home and property. This strategy built excitement and competition when it hit the market. 

Step 6: Negotiating the Best Deal

Developers aggressively tried to push through low cash offers. Lisa utilized her skills as an auctioneer and seasoned broker. She leveraged multiple competing offers against each other. This strategy achieved a great outcome—over asking. We are proud and honored that Eric expressed, “We have been extremely thankful and blessed for Lisa and Rainier Estates. I recommended them very highly. Reach out to them. They are approachable and clear with their services and fees. You will not be disappointed.” Nothing gives us greater satisfaction than when our clients are happy. 

Step 7: Happy Next Chapter for Bob

His longtime home was sold for over-asking with multiple buyers competing. After completing his transition to his new home, Bob could quickly start the next golden chapter of his retirement. We’re happy to have an ongoing connection with Bob and his family. We join him for the occasional lunch to check in and catch up about his new friends and experiences. Our clients mean a lot to us. We want to ensure that each of them feels supported by our team. We also want them to feel understood by us. We feel lucky to be able to assist seniors and executors with their cherished family estates. As a family-owned and run business, we understand the unique needs of families during these times of significant change.

**Client’s identity is modified to protect their privacy. **

Original art, fine art, antiques, collectibles, collection, appraisal, estate planning

Types of Personal Property Appraisals Explained

On By Rainier EstatesIn Appraisals, Blogs3 Comments

Personal Property Appraisals are an important tool for many different situations, such as estate planning, insurance, and charitable giving. At Rainier Estates, we work with clients across the Puget Sound region. We provide professional appraisal services. Our team created this helpful overview of all aspects regarding personal property appraisals.  

Often clients call us asking for an appraisal. The first question we ask is, “Is this because you want to sell your asset(s) or keep them”? This will determine whether a formal written appraisal is required, or if a verbal valuation is more appropriate.

Appraisal Definition:

Personal property, also referred to as tangible personal property, encompasses movable assets that are not permanently affixed to real estate. This includes items like furnishings, artwork, antiques, collectibles, jewelry, equipment, vehicles, intellectual property, and more. Essentially, personal property is composed of all physical possessions other than real estate.

Personal property can be divided into two main categories – depreciable and appreciable. Depreciable personal property decreases in value over time and with use, like furnishings, electronics, vehicles, machinery, etc. Appreciable personal property generally increases in value over time, like fine art, antiques, vintage items, rarities, and other collectibles.

Understanding the nature of personal property is important because it determines the valuation methodology and informs the appraisal process. Since personal property is movable, it requires different assessment approaches compared to real estate. Values are influenced by different factors like condition, provenance, and rarity. Aesthetic qualities and intangible associations also play a role. These factors do not impact real property.

The Role of a Appraiser:

A personal property appraiser gives an independent opinion on value. This opinion is impartial and professional. They assess the replacement cost of identified personal property assets. Appraisers must have the proper credentials, qualifications, and affiliations to appraise different types of property.

For example, appraising residential contents requires different expertise than appraising antiques, machinery, jewelry, or fine art. There are no universal regulatory bodies that oversee or license personal property appraisers. Instead, appraisers obtain credentials through various professional appraiser organizations and must commit to ongoing education and ethical codes of conduct.

Appraisers are not authenticators – they rely on specialists for authentication. Their role is to research, inspect, analyze, and develop an unbiased, justified opinion on the value of property. Appraisals need to be updated every 3-5 years to remain current. Relying on outdated appraisals or non-professional valuations often leads to problematic outcomes.

Common Types of Appraisals:

  • Insurance Appraisals: Required to adequately insure items above standard policy limits. These limits are often quite low for categories like jewelry, fine art, antiques, and collectibles. Needed to settle claims – having a recent appraisal simplifies the claims process significantly.
  • Liquidation Appraisals: Determine the orderly liquidation value of personal property. This includes items that must be sold or divested quickly. Examples are the contents of a home for an estate sale. Consider the type of sale venue and time frame.
  • Probate Appraisals: You may need them during the probate process. They help value estate assets above a certain threshold, especially for tax compliance purposes. Can help divide property among heirs and beneficiaries.
  • Trust Appraisals: Provide current values for property held in trusts. These values may be required to obtain insurance coverage. They are also needed to calculate taxes or distribute to beneficiaries.
  • Inheritance Tax Appraisals: In addition to federal estate taxes, some states levy separate inheritance taxes. Specific appraisals tailored for state requirements may be needed.
  • Guardianship Appraisals: Allow court-appointed guardians to make sound decisions. They can manage, sell, or distribute property they oversee for someone else.
  • Casualty Loss Appraisals: Analyze the decrease in the fair market value of personal property. This property is lost or destroyed due to theft, disaster, accident, or other catastrophic event. Use this analysis for claiming tax deductions.
  • Asset-Based Lending Appraisals: Establish the value of personal property used as collateral. This collateral secures business or personal loans, lines of credit, and other debt obligations.
  • Charitable Donation Appraisals: Document the fair market value of non-cash charitable contributions for tax deduction purposes. An appraisal is required by the IRS for donated property valued at $5,000 or more.
  • Loss/Damage Claim Appraisals: Assess the specific damage or loss in value of an item. This damage or loss must be attributable to an insured incident. This assessment is conducted to settle insurance claims. Differs from a standard appraisal.
  • Equitable Distribution Appraisals: This is used to determine the fair and just distribution of personal property. These properties were jointly owned. This often occurs in divorce proceedings or probate disputes.

Selecting a Qualified Appraiser:

Choosing a qualified appraiser to value your assets is critical. It can be challenging due to the lack of licensing and minimal regulation for personal property appraisers. You need to take a more-hands-on role in vetting your appraiser. Lisa Taylor, the founder of Rainier Estate, exemplifies this approach. Here are important factors to look for:

  • Compliance with the Uniform Standards of Professional Appraisal Practice (USPAP).
  • Membership in a professional appraiser organization is beneficial. This can include the American Society of Appraisers (ASA) or the International Society of Appraisers (ISA). Another option is the National Auctioneers Association (NAA, which offers Graduate Personal Property Appraisal GPPA certification).
  • Relevant education, degrees, and professional training in personal property appraisal concepts and methodology.
  • Documented experience appraising similar types of property like yours.
  • Charges reasonable hourly or flat project rates rather than percentages of valuation, which can be unethical.
  • Provides appraisal reports meeting IRS requirements and your intended purpose.

It’s also recommended to verify credentials, seek references, and interview prospective appraisers before engaging services. Choose an appraiser from a reputable group, such as those mentioned above. This helps you more easily avoid mistakes or oversights.

Common Purposes for Appraisals:

When engaging an appraiser, they will first need to understand your intended purpose. This is necessary to determine the appropriate type of value definition to apply during the valuation process. Some typical purposes for personal property appraisals include:

  • Death: Estate planning and probate are one of the most common reasons to get an appraisal. A detailed appraisal will be needed to accurately distribute inheritances to heirs. It will help calculate inheritance tax. It will also maximize proceeds from estate sales and auctions.
  • Debt: In situations involving debt, appraisals can establish values for bankruptcy filings. They are also used in divorce settlements, loan collateral, and asset division.
  • Damage: When an item is damaged, a written appraisal can be crucial evidence for an insurance company. Without an appraisal before the damage, it can result in lost or diminished claims. An appraisal can also be used for filing casualty loss deductions with the IRS after catastrophic events.
  • Divorce: In the case of a divorce, you need an appraisal. This is necessary for an equitable distribution of marital assets and shared personal property. It’s highly recommended to get an appraisal for all assets before either party is allowed to remove any items.
  • Donation: When you are making a generous charitable donation, you want to ensure that you’re receiving the maximum tax benefits. An appraisal will substantiate the fair market values required by the IRS for claiming charitable contribution tax deductions.
  • Downsizing: During this stressful transition, an appraisal can be a helpful tool when preparing possessions for sale. It helps determine which items you would prefer to keep based on their appraised values.
  • Collateral: An often-overlooked use for appraisals. Banks can extend personal loans or lines of credit. This is based on appraised values of personal property (such as art collections, jewelry, etc). The appraised items are used as collateral in this instance.

Typical Appraisal Report Contents:

A professional personal property appraisal report will contain extensive details about the property. It will also include analyses performed, research conducted, and the valuation conclusions. While formats can vary, appraisal reports typically include the following:

  • Title page clearly identifying the report subject, location, value type, and valuation date
  • Letter of transmittal (a type of cover letter accompanying a financial report) summarizing key information
  • Table of contents
  • Signed certification page with applicable standards
  • Summary of important conclusions 
  • Photographs of property
  • Overview of property location and condition 
  • Statement of appraisal type (complete or limited) and report type (self-contained, summary, restricted use)
  • Disclosure of extraordinary assumptions or hypothetical conditions affecting the valuation
  • Statement of general assumptions and limiting conditions on the appraisal
  • Identification of intended use and intended user per engagement terms
  • Detailed scope of work performed by the appraisal
  • Definition and effective date of value
  • Thorough description and condition assessment of the personal property
  • Discussion of current ownership and relevant sales history, if available
  • Highest and best use analysis for the personal property
  • Application of relevant valuation approaches with explanations
  • Depreciation analyses (physical, functional, economic) as applicable
  • Market research, case studies, and comparative analyses to support conclusions
  • Reconciliation of approaches into a final opinion of value
  • Statement of appraiser’s professional qualifications and credentials
  • Addenda with supporting exhibits, documents, and supplementary data

Keep Your Appraisals Updated:

You may be thinking that getting a personal property appraisal is a “one and done” task. But that’s not the case. The value of personal property items like collectibles, jewelry, art, antiques, and other household contents fluctuates over time. Therefore, it’s advisable to have appraisals updated or reviewed every few years.

 Why would the appraised value change?

  • Market Conditions. Supply and demand for certain items may increase or decrease over the years. More demand drives prices up. More supply drives prices down. Collectibles often behave like stocks, and you want to buy and sell at the right time!
  • Economic Factors. Values tend to track inflation and consumer price indexes. Inflation makes money less valuable over decades, and therefore can also impact appraised values.
  • Popularity and Trends. Styles and collecting preferences come in and out of fashion. Trendy items become worth more, while outdated items lose appeal.
  • Rarity. For collectibles, the number of surviving artifacts determines rarity. As items become more rare over time, values often increase.
  • Condition. Items deteriorate with age and use. An antique in poor condition is worth less than one in excellent shape. Conversely, a restored antique can have dramatically increased value. You want to ensure that your appraisal accurately captures current condition.
  • Historical Significance. Some items gain importance as they age, like artifacts from significant historical events. For instance, an artist’s work will often increase in value after their death.
  • New Discoveries. When new information about an item comes to light, it can positively or negatively impact value. Examples include newly discovered provenance of an artwork or recent auction results.

In summary, many forces cause personal property valuations to change over years or decades. Markets fluctuate, tastes change, items deteriorate. What was commonplace 30 years ago may be collectible today. And condition is paramount. Well-preserved items command premium prices. Appraised values must capture how all these dynamics affect current worth.

Summary:

Appraising personal property assets like collectibles, jewelry, art, antiques, vehicles, equipment, and other valuables requires specialized expertise. Appraisers must have extensive training in property valuation concepts, methodologies, and report standards.

Appraising personal property assets serves a variety of important purposes, including the following:

  • Ensures adequate insurance coverage reflecting current values
  • Provides loss verification and documentation critical for settling insurance claims
  • Allows equitable distribution of property in divorce, estate disputes, bankruptcies, and contract dissolution’s
  • Enables prudent property management by trustees, guardians, executors, and other fiduciaries
  • Maximizes proceeds when assets must be sold in downsizing’s, relocation’s, estate sales, auctions
  • Substantiates charitable deductions and reduces taxes owed on donations
  • Verifies casualty losses for claiming tax deductions after catastrophic events
  • Facilitates lending decisions by establishing collateral values for asset-based loans
  • Streamlines inheritance planning and probate resolution for beneficiaries

Appraisals offer extensively researched, impartial third-party expert opinions on the value of personal property. This service helps minimize conflicts. It also optimizes outcomes.

Addendum: Real Estate Property Appraisals:

You need to appraise the value of your personal property. It is often necessary to appraise the value of real estate property as well. Real estate appraisals require niche skills and training, completely separate from the qualifications required for personal property appraisal.

What is a Real Estate Appraisal?

A real estate appraisal is a professional opinion of what a home or property is worth on the open market. This is a requirement for most banks to loan on a property, estate asset distribution, and more.

Who Does Real Estate Appraisals?

Real estate appraisals are done by licensed appraisers (these licenses are typically provided by the state, Washington included). Appraisers have training requirements and must follow industry standards and ethics rules. We can provide you with a CMA (Comparative Market Analysis) or connect you with a qualified home appraiser.

Real Estate Appraiser Qualifications and Training:

Education

  • Bachelor’s degree in subjects like real estate, finance, economics, business, or statistics is often required
  • Coursework in valuation principles, property analysis, market analysis, and appraisal methodology

Licensing

  • Must obtain state license to perform appraisals meeting federal guidelines
  • Multiple levels – Licensed, Certified Residential, Certified General
  • Higher levels need more experience hours and examination requirements

Appraisal Education

  • 75+ hours of approved qualifying education required before initial licensing
  • 30+ hours of continuing education every 2 years to renew license

Professional Experience

  • 1,000 – 3,000 hours of documented appraisal experience needed, depending on license level
  • Experience requirements increase for higher certifications
  • Mentorship by experienced appraiser often required

Examinations

  • Must pass National Uniform Licensing and Certification Exams
  • Test knowledge of appraisal methods, standards, ethics, and federal regulations
  • Additional specialty exams required for higher Certified designations

Adherence to Standards

  • Expected to follow Uniform Standards of Professional Appraisal Practice (USPAP)
  • USPAP sets standards for ethical behavior and acceptable appraisal methodology

In summary, real estate appraisers must meet rigorous qualification requirements through training, experience, testing, and professional affiliations. Proper credentials guarantee appraisers have the skills to provide fair, accurate, and unbiased property valuations.

Why Get a Real Estate Appraisal?

There are several common reasons to get an appraisal:

  • To establish a sale price for a property
  • To challenge a property tax assessment
  • To determine value before making an offer
  • To verify value for a mortgage loan
  • To get insurance for rebuilding a damaged property
  • To substantiate value for inheritance taxes
  • To confirm value for property division in a divorce

What’s in a Real Estate Appraisal Report?

A typical property appraisal report contains:

  • Details of the property like square footage, bedrooms, baths
  • Photos of the property exterior and interior
  • Sales of comparable nearby properties
  • Analysis of values using approaches like cost, income, sales comparison
  • Adjustments to comparable sales for differences like upgrades
  • Statement of the property’s estimated value and effective date

How are Properties Appraised?

Appraisers use market research and valuation methods to justify their opinion of value. Some of the key considerations that appraisers analyze in their report:

  • The property’s features – age, size, condition, renovations
  • Sales prices of similar homes sold recently in the same area
  • Replacement cost to rebuild, factoring in depreciation
  • Market trends for the neighborhood, city, and region
  • Income generated by rent for investment properties

Every property is unique. Therefore, it’s important to hire an appraiser with a detail-oriented approach. They should have a keen understanding of the current real estate market. This often involves connecting with local agents or brokers to gain more knowledge of niche markets.

The bank often hires the real estate appraiser. However, that doesn’t mean you can’t have a positive impact on the final appraisal outcome. See the helpful guidance below.

Tips for Getting a Good Real Estate Appraisal:

  • Hire an appraiser with local experience and strong reviews
  • Give the appraiser property details like surveys and inspection reports
  • Provide a list of property upgrades and unique features
  • Share information that may impact land value like pending new developments
  • Make any necessary small repairs, especially those that are visible
  • Get a professional floor map of your house that includes a square footage calculation (we’ve had clients gain square footage as a result of doing this, because in the past the accurate technology to calculate sqft wasn’t available)