REAL ESTATE LOANS – Lenders need to know what a property is worth so they can make a loan secured by the real estate. They want some reasonable assurance they will get their money back if you stop making payments and they have to sell your house through foreclosure. Lenders also base their decisions on your ability to pay (your income and expenses) and your willingness to pay (your credit history).

SPECIALTY PROPERTY – Some appraisers specialize in unusual types of property such as golf courses, bed and breakfast inns, campgrounds, health clubs and even contaminated sites. If you are buying or selling a special type of real estate, you may need an appraiser who is a specialist.

In rural areas there are fewer appraisers and they tend to be generalists. In addition to residential and commercial properties, rural appraisers often know something about farms and ranches, timberland, condemnation work and complex mixed use properties.

SELLING PROPERTY – If you want to sell your property in the least amount of time, it’s important to list it at or near market value. Real estate agents will usually perform a free comparative market analysis to help establish a listing price. However, sometimes an independent appraiser is needed for unusual or complex properties.

BUYING PROPERTY – Potential buyers, especially those who are unfamiliar with the local real estate market, may want to know what a property is worth before they make an offer. Buyers often include an appraisal contingency in their purchase offer.

DISSOLUTIONS AND BUYOUTS – People often own property together as married couples, partners or groups. When partnerships or marriages dissolve, it’s often necessary to estimate the market value of the various interests to allow the co-owners to buy from or sell to each other.

PARTIAL INTERESTS – The market value of a minority interest is often less than its actual percentage of the total property value (the minority partner has less property rights). Appraisers can estimate appropriate discounts for these interests.

RENT SURVEYS – Whether you’re a landlord or a tenant, it’s important to know what sort of rent and lease terms are appropriate for your market. Appraisers can conduct rent surveys to determine the market rent for a particular property.

LEASEHOLD INTERESTS – When a tenant has a long-term lease at less than market rent, they own a type of property right called a leasehold interest which has market value. Appraisers can estimate the tenant’s leasehold interest and the landlord’s corresponding leased fee interest. The sum of the two interests is equal to market value.

ESTATES AND TRUSTS – Real estate appraisers can have a profound effect on estate taxes by providing an accurate estimate of market value. Appraisers can also provide valuation expertise to attorneys and financial planners for estate planning, setting up trusts and distributing assets.

CHARITABLE DONATIONS – Charitable donations can provide large tax deductions for some people. Appraisers can estimate the value of charitable donations, including complex arrangements such as life estates and conservation easements.

LITIGATION SUPPORT – Appraisers assist attorneys with a variety of services including trial preparation, research, analysis, deposition reviews and expert testimony.

CASUALTY LOSS – Appraisers assist property owners and insurance companies in determining casualty losses from fires, floods, storms and other disasters.

EASEMENTS – An easement is a type of partial interest which has value. Estimating the value of an easement requires an understanding of the property rights conveyed by the easement and how they affect the use of the property.

BOUNDARY LINE ADJUSTMENTS – When property owners need to adjust a boundary or negotiate an easement, appraisers can assist in this process and estimate the effect on the market value of the properties involved.

PMI REMOVAL – Homeowners who pay costly private mortgage insurance (PMI) are normally entitled to have it removed when their equity exceeds 20 percent of market value. Appraisers can provide the necessary support for PMI removal.

PROPERTY TAX APPEALS – A private appraiser can assist you with property tax appeals. Also, the appraisers in the County Assessor’s Office may be able to help you reduce your property taxes at no charge.

CONDEMNATION – Government agencies are required to pay fair market value when they condemn or acquire private property for road widening, utility rights-of-way, open space and other public purposes. Appraisers can assist both private property owners and government agencies in this process. Even voluntary sales to government agencies normally must be supported by appraisals which follow state condemnation guidelines.

TIMBERLAND – Professional foresters conduct timber cruises to estimate the volume, quality, harvestability and market value of merchantable timber. Appraisers can work with professional foresters to estimate how merchantable timber contributes to overall property value.

HIGHEST AND BEST USE ANALYSIS – A thorough highest and best use analysis can help the property owner decide whether to buy, sell, lease, hold for future development, divide, consolidate, build, remodel or demolish. For income-producing projects, a highest and best use analysis can help determine the best design, including the optimum size and number of units.

MARKET ANALYSIS AND SITE SELECTION – Some appraisers use sophisticated geographic information system (GIS) technology to help their clients research a market and select the best development sites.

CONSERVATION EASEMENTS – Appraisers help land trusts, open space districts and other conservation organizations with donations, easements, acquisitions and land swaps.

REAL ESTATE DAMAGES – This is an appraisal specialty involving properties damaged by such things as groundwater contamination and airport noise.

PROJECT COORDINATION – Appraisers sometimes serve as project coordinator for real estate projects involving a team of experts.

REAL ESTATE CONSULTING – Some appraisers give expert real estate advice that may not necessarily include an estimate of value.

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Chet Boddy, Real Estate Appraisal, Sales and Consulting