The world of property valuation can be confusing, especially when estate appraisals and market appraisals are mentioned. It is important to differentiate between these terms in order for you to make informed decisions about your property, particularly in Maricopa County, Arizona. Whether you are dealing with probate matters, considering a sale or need a local appraisal service such as TruValu Appraisals AZ, this article will help demystify the difference between an estate appraisal and a market appraisal.
What does Market Appraisal mean?
Market appraisal is a term used in real estate transactions to determine the fair market value of a property. Simply put it estimates what price a willing buyer would pay and a willing seller would accept in today’s market conditions. The following reasons make this valuation significant;
- Buying a home: Market appraisals offer an opportunity to purchase properties without being overcharged for them and a better negotiation position.
- Selling your home: By knowing the market value you will be able to price your house appropriately so that it sells quickly and successfully.
- Refinancing of mortgages: For refinancing purposes, lenders usually require the current value of estate through which the loan amount should not exceed safe limits.
Major Factors Informing Market Appraisal:
- Sales on comparable homes within the vicinity: Appraisers assess identical homes based on size, location, features, and condition to estimate a reasonable market value.
- Current situation in the marketplace: Determining if there is low supply or high demand has significant effects on the price valued by the appraiser.
- Condition of property: Final evaluation includes adjustments made due to upgrades done or lack thereof after renovation project completion.
- Location: Generally superior community areas having resources like great schools enhance the worthiness of any given place within its surroundings
What is Estate Appraisal?
An estate appraisal concentrates on determining fair market value (FMV) other than selling or buying on an open-market basis. Common examples of such situations include:
- Inheritance: When someone passes away, real estate appraisal helps determine the value of their property so that assets can be distributed among heirs accurately.
- Taxation: Estate appraisals are also performed to ascertain the worth of a property for purposes relating to estate taxes in order to accurately calculate estate tax liability.
- Divorce settlements: Equitable division of the marital asset normally requires a fair and independent assessment of property involved within a divorce.
Important Considerations for Estate Appraisals:
On top of some factors shared across it with market appraisals, an estate appraisal looks at other things as well:
- Distressed sale vs. fair market value: An estate appraisal usually considers how quickly the deceased’s home has to be sold in order to wind up his or her affairs, which sometimes leads to a slightly lower value compared to that indicated by a market appraisal.
- Property specialist and expert: To evaluate unique properties such as historical ones or vacant land, you might want an evaluator who specializes in these evaluations because they require some specialized knowledge that other general real estate evaluators do not possess.
- Date-of-death value: Valuation dates in relation to certain taxes involving estates are typically established as on the date when the owner dies.
Maricopa County is where TruValu Appraisals operates
If you need either market appraisal to maneuver through your real transaction or estate appraisal resulting from intestacy proceedings/changes in legal status then rely on TruValu Appraisals AZ. Our expert team is composed of licensed appraisers with extensive knowledge about Maricopa County’s real estate sector guaranteeing they will offer dependable valuations suited to your specific needs.
Here’s What Differentiates TruValu Appraisals AZ:
- Accuracy is our obsession: We make sure to inspect properly and do extensive market research for a correct valuation.
- The Client’s Direct Approach: We understand that effective communication and client service are essential throughout the appraisal process.
- Prices that can compete with others on offer: Our services have reasonable rates to remain within reach of many.
- Fast Turnaround Times: A well-detailed appraisal report will be given to you soon so your projects won’t get delayed.
Downsizing:
In a typical buying and selling scenario, fair market value is determined by market appraisals. Estate appraisals, however, are usually concerned with value in non-market settings often including forced sale value as well as the property’s worth at a particular date.
When You Are Unsure, Consult a Professional Estate Appraiser:
If uncertain about which type of appraisal you should order, call TruValu Appraisals AZ for a free consultation. Our experienced team will be able to answer your questions and even help you know what would work best in your situation.
With TruValu Appraisals AZ at Your Side, Real Estate Appraisals Become Easy
