There are many reasons you may need an appraisal by an MAI appraiser.
- Financing: Appraisals for financing or refinancing purposes are typically requested by the lending institution rather than the property owner. These appraisals must also comply with FIRREA XI. Requires at least a Summary level appraisal.
- Purchase and Sale: The appraisal is typically requested by the prospective seller or by the potential buyer. A Restricted level appraisal is usually sufficient because the client is very familiar with the area, the local market, and the local economy.
- Estate Planning, Valuation, or Partitioning: Often requested by the property owner to plan gifting to heirs. In the case of the death of an owner, it is required to settle the estate. Usually requires a Summary level appraisal because it will be submitted to the: IRS.
- Tax Abatements: Requested by the property owner who thinks their property assessment and taxes are too high. The appraisal is typically filed with the tax abatement. A Restricted level appraisal is usually sufficient but check with the taxing authority to be sure.
- Eminent Domain Takings: When a governmental agency takes part or all of your property by condemnation (eminent domain), they have an appraisal done to establish the value. You cannot prevent the taking, but you can dispute the value by having your own appraisal done. Always involves your attorney because it will likely end up in Superior Court or your State’s tax appeal board (Bureau of Tax and Land Appeals in New Hampshire, State Board of Property Tax Review in Maine). Usually, requires a Summary level appraisal.
- Zoning Variances: An appraisal is sometimes required when you are seeking a zoning variance to quantify the impact on nearby property values if a variance is granted. A Restricted level appraisal is usually sufficient.
- Contaminations: An oil spill or leaking gasoline storage tank can affect property values. Often involves your insurance company. Usually, requires at least a Summary level appraisal.
- Divorce: Always involves lawyers who require an appraisal to divide the assets. A Restricted Use level appraisal is often sufficient because all parties are familiar with the subject property. For court purposes, however, an Appraisal Report level is required.
- Dissolution: Usually involves lawyers who require an appraisal to divide the assets. A Restricted Use level appraisal is often sufficient because all parties are familiar with the subject property. For court purposes, however, an Appraisal Report level is required.
- Probate: Probate is a legal document. Receipt of probate is the first step in the legal process of administering the estate of a deceased person, resolving all claims and distributing the deceased person’s property under a will. An Appraisal Report level is usually required for court purposes.
- Litigation: Most litigations involving real estate require an Appraisal Report.
There are two options for appraisal reports that differ only in the level of detail provided:
- Appraisal Report
Provides the highest level of detail and is the most costly.This level is usually required when the client has no familiarity with the subject property or its economic characteristics.
Prior to 2014, there were two different levels here, called Self-Contained Report and Summary Report. - Restricted Use Report
This may be used when there are no intended users other than the client.Typically requested for uncontested divorces, or for private party purchase or sale.
