Types of Appraisals - Higgins & Welch Appraisers, LLC.

Types of Appraisals

Estate Planning, Liquidation or Divorce

Property Tax Assessment Appeals

It's a running joke that every one has a different perspective of what a house is worth. And it's the tax assessor that seems to always come in at the high end of the scale! Challenging the tax assessment has become an annual ritual in many parts of the country. Unfortunately, most people go into these challenges unarmed. They may pull some information from the internet to support their claims, but have no real basis other than: ''It wasn't worth that much last year.''

Our extensive experience in tax appeal assessment can help you in these situations. Enlist our services and obtain a certified appraisal.These documents can carry a lot of weight when you appear before an appeals board.

PMI Removal

Private Mortgage Insurance or PMI is the supplemental insurance that many lenders ask home buyers to purchase when the amount being loaned is more than 80% of the value of the home. Very often, this additional payment is folded into the monthly mortgage payment and is quickly forgotten. This is unfortunate because PMI becomes unnecessary when the remaining balance of the loan - whether through market appreciation or principal paydown - dips below this 80% level. In fact, the United States Congress passed a law in 1998 (the Homeowners Protection Act of 1998) that requires lenders to remove the PMI payments when the loan-to-value ratio conditions have been met.

We offer a PMI appraisal for home owners that believe they have met the 80% loan-to-value metric. For a nominal fee, the appraiser can provide you with a report with the home value. The costs of these services are very often recovered in just a few months of not paying the PMI.

Pre-Sale Decisions

Before someone decides to sell a home, there are several decisions to be made. First and foremost: ''How much should it sell for?''

Our appraisal can help you make this decision. Unlike a Realtor, an appraiser has no vested interest in what amount the house sells for. Our fee is based on his efforts, is minimal and fixed, not a percentage of the sales price. So seeking a professional appraisal can often help homeowners make the best decisions on investing in their homes and setting a fair sales price.

Estate Planning, Liquidation or Divorce

The loss of a loved one is a difficult time in life. Likewise, a divorce can be a particularly traumatic experience. Sadly, these events are often complicated by difficult decisions regarding the disposition of an estate. Unlike many wealthy individuals, the majority of Americans do not have dedicated estate planners or executors to handle these issues. Also, in most cases, a home or other real property makes up a disproportionate share of the total estate value.

Here too, we can help. Often the first step in fairly disposing of an estate is to understand its true value. Where property is involved, the appraiser can help determine the true value. At this point, equitable arrangements can more easily be arrived at among disputing parties. Everyone walks away knowing they've received a fair deal.

Foreclosure/REO appraisal

Homes in foreclosure and homes that have reverted to an institution's ownership present special appraisal challenges. Luckily, Higgins & Welch Appraiser’s are highly experienced in foreclosure and REO valuations.

For a property in foreclosure, you may need to know the difference between fair market value and "quick disposition" value, to know your potential charge-off liability. We have experience in both providing as-is fair market value for our mortgage lending and servicing clients as well as "quick sale" forecasts that understand your timeline.

Owners of property in foreclosure, of course, present special challenges. They may be unwilling to allow an inspection of the property. If they have abandoned the property already, they may have neglected care of the home for some time -- or worse, caused damage. We have the experience and training to deal with the special dynamics of a foreclosure appraisal, and you should not hesitate to rely on us.

For a property that has already reverted to Real Estate Owned, you likewise will be interested in a quick disposition. But you may want to know and compare three values: As-is, as repaired, and "quick sale." These represent the value of the property without any work done to it, with the work required to make the property marketable to full market value commensurate with competing properties in the area, and, somewhere in-between, with minimal investment in repairs -- selling the property quickly, probably as a "fixer-upper."

Relocation Appraisals

These services are generally provided to Relocation Companies or Corporations that have an "In House" relocation department and offer home marketing assistance or home buying services to transferee's. This is a fairly detailed appraisal that is intended to accurately and realistically reflect all of the factors that have an influence on the marketability of a property. The purpose of the appraisal is to estimate the "anticipated sales price" of a property in its "as is" condition, given a "reasonable period of time" to market the home which is generally defined as up to 120 days. The estimated price should be reflective of the behavior of a well informed buyer with typical preferences and tastes. The estimated price should be on a "cash equivalent" basis, which is a price that is unaffected by any seller paid concessions.

There are several primary differences between most relocation appraisals and the mortgage appraisal:

The estimate of value for most mortgage appraisals is based upon market conditions "as of" the date of the appraisal and does not include forecasting or the projection of current trends into the anticipated marketing period of the property as is the case in a relocation assignment. If prices are rising, this should be reflected in the appraisal and thus the value may be higher than that of a mortgage loan appraisal that does not include forecasting. If values have been declining, the appraiser must recognize that closed sales will produce too high of a value if not adjusted for the anticipated marketing time.
While both appraisals generally are based upon the property's "as is" condition, the relocation appraisal must realistically reflect any personalization, and repairs that should be made in order to effectively market the home to the typical buyer.
Relocation appraisals are based upon a "cash equivalent" valuation whereas a mortgage loan appraisal may reflect financing terms that are typical in the market but would have an effect of artificially inflating the value of the property.
The relocation appraisal must also carefully reflect how certain features will market to the typical or majority of buyers in a given market. Swimming pools, tennis courts, stables, too few or too many bedrooms, and home style may all be marketability issues.
If the typical marketing time for a property in a given market is 180 days, and the client needs the appraisal to reflect a marketing time of 120 days, the appraiser must reflect this request in the appraisal.
The relocation appraisal also makes recommendations for repairs, improvements and inspections, so as not to delay in the sale of the home.

In summary, the relocation appraiser must place him or herself in the shoes of the typical buyer however must be truly aware of the condition and features of the property and comparables, understand the demographics of the neighborhood, and be knowledgeable of historical transactions, pending sales, and alternatives that are presently on the market. While such an appraisal may take a little longer to prepare and thus cost a little more, the results can be well worth the effort.

Key Benefits

Accurate valuation prevents from selling too low or listing too high

Reduced marketing time, means lower overall costs

Makes you aware of your direct competition and the window of opportunity