Cape Appraisals Blog

Why would anyone need an appraisal for a short sale?

This is a very good question that has a very obvious answer.  If the client's objective is to sell the property in the shortest marketing time possible for the highest amount that the market is willing to pay, then only a true appraisal completed by a local professional that knows the market area and current market trends can determine what that amount is. 

I have completed many assignments for borrowers and homeowners during this "bubble burst" that have needed leverage to negotiate with their lenders.  This leverage has been provided to them by offering an appraisal completed by an appraiser that has intimate knowledge of the local market and has observed the market trends through both the ups and downs. 

Once a contract is received from a buyer, an appraisal completed by an objective third party can provide a lot of documentation that supports the contract offer, therefore enabling the lender to make an "informed" decision as to whether to allow the short sale to proceed.  

Most Realtors are deterred by short sales due to being discouraged by the length of time it takes to negotiate the final sales price with the lender.  This negotiation can go much smoother if the Realtor can provide documentation from a third party that does not have a commission interest in the transaction.  Only an appraisal completed by a qualified Residential Real Estate Appraiser can provide that documentation. 

If you would like to find out more about how to increase your sales activity, please contact Jim Kreider at (239) 458-2463, or email Jim@capeappraisalsfl.com.

Assessment appeal deadlines are approaching!  Each county has different deadlines for appeals!  To ensure you do not miss a deadline, you must order your tax assessment appeal appraisal by 9/8/2008 to ensure you have your completed report (remember the burden of proof is on the homeowner). 

Any assignment requests received after 9/8/2008 will receive a RUSH order fee of $100. 

If you need help reading your TRIM notice, please call Cape Appraisals at (239) 458-2463 today! 

On Friday 8/22/2008, most of the residents in Southwest Florida received their 2008 TRIM notice in the mail.  This is the official starter of the clock ticking to petition the local Property Appraiser to lower your assessed market value. 

If you have not received your TRIM notice, please call us to learn how to find your notice on the Property Appraiser's web site. 

Remember, the burden of proof is on you as the homeowner.  If you miss any of the crucial steps in the appeal process, you will lose and will not be able to take advantage of lowering your tax bill!

Call Cape Appraisals today for your consultation at (239) 458-2463.

The time grows near!  We have already warned you that many properties in our local coverage area may be OVER assessed by the local property appraiser.  This means to you that your tax bill may be too high!

If you are like many others and feel the economy crunch, you must take action soon to help reduce your local Real Estate Taxes.  Although some property owners try to take on the task of appealing their assessed values on their own, a large percentage fail due to their lack of knowledge about the process.  The most important thing to remember in the appeal process is that if you disagree with your assessed value, THE BURDEN OF PROOF IS ON YOU!

Rest assured that the Appraisers at Cape Appraisals have specialized training in the local county's appeal process and can help you in your quest to save money.  The required process in each county must be followed exactly as outlined by local law.  The initial window of opportunity for you to submit your appeal is very small. 

Although we are one of the largest Real Estate Appraisal firms in Southwest Florida, we have already received a large influx of inquiries about this issue.  If you want to make sure you do not miss any of the required deadlines, please visit www.capeappraisalsfl.com/AssessmentAppealServices.  On the page, you may submit your information to be placed on a priority list of properties that we will appraise for assessment appeals.  Or you may email Appeals@capeappraisalsfl.com to receive a free telephone consultation. (Please note a preferred day & time that you would like to receive a telephone call from one of our experts).  Or call (239) 458-2463 to discuss your assessment appeal.

DO NOT DELAY!  YOU MAY MISS IMPORTANT DEADLINES!

One of the most important steps in settling probate or determining an estate tax liability is valuation of an individual's interest in Real Estate.  The difficult part of this process is finding a competent professional that is experienced in placing a value on Real Estate for a specific date (date of death). 

Estate tax liability. Disposition of assets under a will or in probate. There are many situations -- none of them lacking stress and complexity -- where you might need an appraisal of property that states an opinion of what the property was worth on a date some time ago, rather than when the appraisal is ordered. For estate tax purposes or disposition of the assets of a decedent, a "date of death" valuation is often required. (Sometimes, the executor of the estate may choose to have the date be six months after the date of death -- but the same principles apply.)

Rest assured that the appraisers at Cape Appraisals have the training and experience in completing these important assignments. 

Attorneys, accountants, executors and others rely on Cape Appraisals for "date of death" valuations because such appraisals require special expertise and training. They require a firm that's been in the area for some time and can effectively research comparable contemporaneous sales.

Real property isn't like publicly traded stock or other items which don't fluctuate in value very much or for which historical public data is available. You need a professional real estate appraiser, bound by the Uniform Standards of Professional Appraisal Practice (USPAP) for a high degree of confidentiality and professionalism, and you need the kind of quality report and work product taxing authorities and courts need and expect.

As Appraisers, we are not able to give tax advice, however we do often communicate with the professionals that can.  One of these professionals is HJP Financial Services.  For tax advice, please call Herve Jean-Pierre at HJP Financial Services at (239) 274-8291 or visit www.hjpfinancial.com for mor information. 

This is an issue that is very often brought up by clients and Appraisers. As you know in the "Real World", ALL appraisal review assignments ordered by lenders include a requirement for the appraiser to give their own opinion of value of the subject and/or state whether they agree or disagree with the original appraiser's opinion of value. 

USPAP states that if the appraiser is not competent (example:  does not know the market area), then he/she must decline the assignment or disclose to the client exactly how they intend to become competent to complete the assignment.  For example, we often appraise bulk assignments outside of our local market area.  In all of those reports, we state that we have studied the local market by several methods:  continuous travel over the appraiser's lifetime in and out of the market area, conversations with local Real Estate professionals, conversations with homeowners, conversations with property managers, study of the local Real Estate trends, conversations with builders/developers, etc.  If these disclosures are not made, then the appraisal is in violation of USPAP.

I am sure most of our clients have experienced having a deal killed by a review appraiser from accross the state (or country) that did not agree with the value state in an appraisal completed by an appraiser that lives in the heart of the subject's market area.  As the original appraiser, it is very difficult and very expensive to fight these issues, however as the client, you have the absolute right to DEMAND that the review appraiser provide their reasoning for determining their competency to give an opinion of value in a market area that they do not live in and most likely have never physically seen.  If you do not demand this information from the lender or the review appraiser, you are not protecting the borrower's or the lender's interests.

For more information regarding USPAP or if you have a specific question regarding review appraisals, please contact Jim at 239-458-2463 or email Jim@capeappraisalsfl.com. 

We are rapidly approaching summer in Southwest Florida!  Along with summer, comes our local hurricane season.  As you prepare your home and family by creating disaster plans, keep in mind that in the middle of hurricane season, our local property appraiser sends out proposed "TRIM" notices.  It is predicted that these notices will create a "STORM" of conrtoversy. These notices will show the county's property appraiser's estimated value of your home.  Please take the time to review this notice carefully.  Should you believe your property is overvalued, you may be in a position to contest this value and lower your tax liability.

However, you must keep in mind that you must prove the property appraiser's assessed value is incorrect.  This burden of proof rests on you!  If you are unable to provide evidence to the property appraiser's office, your request to lower your assessed value will be denied! 

As the appeal process is fairly simple, there are several strict guidelines and deadlines that the homeowner must follow to be successful. The Appraisers at Cape Appraisals receive specialized training in consulting homeowners regarding petitioning to lower their assessed value.  Please contact Jim Kreider at (239) 458-2463 or Toll Free at 1(877) 221-4254 or email Jim@capeappraisalsfl.com.  No matter what county your property is located in, Jim will be able to guide you through the process and ensure you do not miss important deadlines! 

The next series of posts to my blog will address commmon requests or inquiries that our company receives.  I am addressing these issues as our phone rings more often now with requests that we are not able to "just do" as the client wishes.  Please keep in mind that Real Estate Appraising is a regulated industry.  Therefore, we must comply with certain rules and regulations that our clients do not have to. 

If you have any specific questions that you would like to ask about the appraisal process, our qualifications, or guidelines/rules/regulations/laws that we must adhere to, please email your question to Jim@capeappraisalsfl.com. 

Last week I received a phone call similar to this USPAP question:

The popularity of web sites that give "estimates" of value for homes is increasing.  As many people research the prospect of purchasing or refinancing, they are turning to alternatives to "save money" in the decision making process. 

Often, Cape Apppraisals receives calls from homeowners or buyers wanting to know if the estimate they received from a web site is accurate.  Our first response is to explain to the individual that these "estimates" are not appraisals.  Only qualified professionals can complete appraisals. 

Cape Appraisals has tested several different online valuation sites and found that the "estimates" provided by these sites have differed from the appraised value of a home by as much as 50%.  It appears that by removing the "live person" (the Appraiser) from the valuation process reduces the accuracy of the valuation process.  This is due to most valuation sites only considering one source of information when generating a value for a property.  Most of these sites subscribe to information provided by local public records. 

The reason an Appraiser can give a more accurate value is that Appraisers are actively involved in the market where the property is located and able to apply their experience and knowledge to the property being appraised.  One of the most valuable sources of information an Appraiser can apply to valuating a property is conversations with local Real Estate Professionals, Buyers, and Sellers.  As Buyers and Sellers drive the market, the information provided by them is most important. 

When making one of the most important financial decisions of your life, be sure that it is a sound one by consulting a professional with knowledge of the local market.  Rest assured that the Appraisers at Cape Appraisals are very active in the Southwest Florida Real Estate market and will always be able to provide you with the highest quality and most accurate value.

For mor information and to find out what type of appraisal best suits your situation, please call Cape Appraisals at (239) 458-2463