Splitting up marital assets?

We understand that divorce can be very difficult. There are many choices to worry about, including the status of the shared residence. There are generally two choices regarding the house - it can be put up for sale and the proceeds split, or one party can "buy out" the other. In either case, one or both parties would find it in their best interest to order an appraisal of the residence.

An appraisal for divorce purposes should include a well-established, professional report that is defensible during a trial. Appraising Hawaii guarantees an exceptional level of service with courtesy and well-supported conclusions. Working through the sensitive challenges of a divorce situation is familiar territory for us.

HI attorneys as well as accountants depend on our values when figuring out real property values for estates, divorces, or other disputes requiring a value opinion. We have an abundance of expertise dealing with all the parties involved and are standing by to assist your needs. We provide appraisal reports that fulfill the requirements of the courts and various agencies.

As a legal professional handling a divorce, your case's research often necessitates an appraisal to determine fair market value for the residential real estate involved. Many times the divorce date differs from the date you requested the appraisal. We're experienced with the methods and all that it means to do a retroactive appraisal that has an effective date and Fair Market Value estimate corresponding to the date of divorce. For each divorce appraisal we handle we understand that they need to be handled delicately. The Uniform Standards of Professional Appraisal Practice (USPAP) contains an ethics provision which means the highest amount of confidentiality, resulting in the utmost discretion.

What exactly is PMI and how can I get rid of it?

Private mortgage insurance (PMI) protects lenders from borrower default on mortgage payments. It is required when the down payment is less than 20% of the purchase price, allowing borrowers to obtain loans with a lower down payment. However, PMI is a cost borne by the borrower, not the lender. PMI is required until the loan balance exceeds 80% of the home’s original value. Removing PMI reduces the borrower’s monthly mortgage payment.

By leveraging a recent home appraisal, homeowners can accurately reassess their property’s value to eliminate PMI potentially. This valuable step involves getting a professional appraisal to negotiate the removal of PMI. Utilizing an updated appraisal allows homeowners to determine if their property value has increased enough. By tapping into a new home appraisal, individuals can work towards eliminating PMI by showcasing their property’s value growth.

Many people are surprised when they find out that the market value of their home is more than they estimated, so investing in an appraisal from Appraising Hawaii actually allowed them to receive several thousand more dollars than they thought they would when their home was sold. There are also plenty of home sellers who think their home is worth much more than it really is, and an appraisal helped them to decide on a realistic price for their home in order for it to sell. An overpriced home won't attract potential buyers, which means no offers and no closing and that you have wasted valuable time, money, and efforts. Every month your home sits on the market is another month you have to pay the mortgage. And in the meantime, you're stuck paying the mortgage while your house is sitting still on the market. 

Hiring a licensed appraiser is the best way to get a precise listing price for your home in today's changing market. 

Are you working with a real estate agent to list your home? Then you can expect them to provide you with a comparative market analysis (CMA) that displays a list of houses for sale in your local area. It's a customary starting point in deciding your home's listing price. If you're going to minimize the home's time on the market and maximize your profit, this is a really important step. 

However, it's definitely in your best interest to have a third-party's objective opinion of value before signing the Listing Agreement, even if you've been working with an experienced real estate agent. 

That's where we come in! We'll do a pre-listing appraisal so both you and your agent have an accurate description of your house's features and a detailed analysis of the most recent and similar comparable sales or "comps". 

Appraising Hawaii can help you decide on a realistic selling price so your house will interest potential buyers, and we can also: 

• Be a valuable negotiating tool once you find a prospective buyer 

• Impress buyers with written proof of your home's condition inside and out 

• Make you aware of problems and eliminate last-minute repair hassles 

• Reduce chances of unexpected predicaments that can cause your sale to crumble 

• Cut out waiting for the buyer's appraisal to have confidence the deal can be underwritten. 

• Suggest Upgrades that improve your home's value 

Appraising Hawaii can help you answer the many important questions to ask yourself before listing your home. Questions like "Should we paint the entire house before we sell it?", "Should I put in that third bathroom?", "Do I need to finish my kitchen remodel?" Everything we do to our houses can affect their value. But, not all of them have an equal affect. A kitchen remodel may improve the appeal of a home, but it may not justify the expenses involved. 

Need help making some of these important decisions? We're here for you. Appraising Hawaii appraisers have no vested interest in what amount the home sells for, unlike an agent. Your fee to us is based on efforts to finalize your report, and not a percentage of your home's sale price. 

How Do Foreclosures Impact Appraisals?

When a certified appraiser assesses the value of a property, one of the factors they look at is other homes in the immediate area. They’ll consider houses that have similar features like the number of bedrooms, bathrooms and more. If one of those homes was a foreclosure, its value may not immediately reflect your own. This requires the appraiser to essentially adjust the value in order to reflect some of the differences that are found.

Another element that an appraiser would need to consider has to do with the stigma that foreclosures bring with them. If a house is foreclosed upon and owned by the bank, most people assume that there must be something seriously wrong with it – but this isn’t always the case. All of this is why the experience of an appraiser is of the utmost importance – they’ll need to use the knowledge they’ve picked up over their career to determine how the foreclosure should impact the value they set for the home they’re working with next.

Overall, the impact that foreclosures can have on appraisals – not to mention the local real estate market – will vary based on the situation. One of the major determining factors will be how well the home has been maintained by the previous owner. If it is simply a matter of the owner missing a series of payments to begin the process, that’s one thing. If they’ve allowed the home to fall into disarray, it’s likely to bring down the value of other comparable homes on the market.

The same is true of how long the home has been allowed to sit on the market. A foreclosure that was able to be sold by the bank quickly won’t impact appraisals as much as a home that has sat idle for many months or even years. It’s been estimated that areas with a significant number of foreclosures could see an overall decrease in home values by as much as 1%.

If you’re interested in finding out more information about how foreclosures impact appraisals in the real estate industry, or if you just have any additional questions that you’d like to go over with someone in a bit more detail, contact Appraising Hawaii today!

When is a home measurement or floorplan service needed? 

Challenging real estate taxes: Tax records often reflect the wrong square footage or additions completed because the values can come from various sources, and sometimes go unverified — meaning you may be paying for more space than you have! Unless a certified appraiser has recently completed a valuation on your property (after any updating that may have affected square footage), you'll need one to perform a measurement service before attempting to dispute your taxes. An appraiser assesses the accurate Gross Living Area (GLA) of your property so your taxes reflect your actual square footage — and you can stop overpaying. 

Why are relocation appraisals necessary?

For a homeowner relocating to a new city, state, or even country, selling their existing home is one of the most challenging and stressful parts of the process. To speed up the relocation timeline, the homeowner’s employer may provide compensation to make payments on the property while finding a new home or even purchase the property from the homeowner. Having an accurate valuation of the property supports both the homeowner and the company to ensure they receive fair compensation. 

How relocation appraisals differ from traditional appraisals

The ERC (Employee Relocation Council ) determined that the standard Uniform Residential Appraisal Report (URAR) used in mortgage lending would not suffice for a relocation appraisal because they wanted to better serve the corporate relocation companies who order the appraisals. To meet this need, they created the Worldwide ERC Summary Appraisal Form¹ in 1984. It’s longer than the URAR form and requires the appraiser provide more detail and analysis in a longer, more narrative format.

There are two key differences between a relocation appraisal and a mortgage-based appraisal:

1. You aren’t providing the market value of the property so much as you are providing an opinion of the anticipated sales price. the purpose is to form an opinion of the anticipated sales price, not the market value of the property.

2. The intended user of the appraisal is not the transferee. Instead it is the appraiser’s client, the relocation management company, and the employer.

Let’s look a bit closer at these. Since the purpose of the relocation appraisal is to anticipate the sales price of the property and requires some forecasting, it involves a wider range of research and analysis. For example, retrospective analysis (i.e., closed comparable sales) is considered in a mortgage appraisal, but a prospective analysis is used in a relocation appraisal, as forecasting is a part of the assignment. Data on supply and demand, as well as overall market conditions such as absorption rates, are used to reach a forecasting adjustment.

There are also differences in the selection of comparables. Regarding closed sales, the restrictions differ from those of a mortgage appraisal in that the appraiser does not have time constraints. Properties of similar style, design, and amenities within the same community carry more importance than settled sales within a few months of each other that lack these similarities. Pending sales are also given more consideration in the process.

The subject property inspection in a relocation appraisal is decidedly more detailed than that for mortgage purposes. It is not unusual for an appraiser to spend at least an hour or more at the property, notating aspects of interior décor, landscaping, and improvements—as well as deficiencies—as all of these factors play an important role in developing an opinion of the anticipated sales price.

More minor differences between the two types of appraisals also include financial consideration, marketing time, and compliance with relocation requirements and guidelines.