Posted on: 23rd Jan, 2009 02:17 am
Is the estimated value received from an estate valuation appraisal same as a market appraisal? I have been getting conflicting information regarding estate valuation appraisal and market appraisal on property. Can anyone out here explain this to me out here what the things are exactly???
Hi peterpan,
As far as I know, estate valuation is considered to be the real worth of your property. This type of valuation is done mainly for the insurance purposes, bank purposes or auction purposes. This type of a valuation is done in order to determine the amount of death tax or property taxes that are required to be paid. A certified appraiser should be hired in order to do such an appraisal.
On the other hand, market appraisal helps in evaluating the expected price at which a homeowner will be able to sell their home. Properties sold in the neighborhood will also influence this appraisal. This type of appraisal is done by an experienced realtor. who will take into account the prices of other properties sold in your area, how many rooms the property has, maintenance of the property, its looks, size of the property and other details.
Thanks.
As far as I know, estate valuation is considered to be the real worth of your property. This type of valuation is done mainly for the insurance purposes, bank purposes or auction purposes. This type of a valuation is done in order to determine the amount of death tax or property taxes that are required to be paid. A certified appraiser should be hired in order to do such an appraisal.
On the other hand, market appraisal helps in evaluating the expected price at which a homeowner will be able to sell their home. Properties sold in the neighborhood will also influence this appraisal. This type of appraisal is done by an experienced realtor. who will take into account the prices of other properties sold in your area, how many rooms the property has, maintenance of the property, its looks, size of the property and other details.
Thanks.
Peterpan,
The purpose of both appraisals is the same, to estimate market value. Market value, according to FNMA, is the most probable price which a property would bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. The difference between the two types of appraisals is the intended use/user of the report and the date of valuation. Estate appraisals are usually based on the retrospective market value as of the date of death, whereas a market appraisal, as you have named it, is usually for loan or sale purposes and is often effective the date of inspection of the property.
As Niicss has pointed out, it is common in some areas of the country for realtors to complete a CMA or comparitive market analysis. However, in some states it is prohibited for realtors to perform these types of valuations with the exception of developing a price for a listing. In these states, an appraisal can only be completed by a professional appraiser, licensed or certified in that state.
I hope this has answered your question.
The purpose of both appraisals is the same, to estimate market value. Market value, according to FNMA, is the most probable price which a property would bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. The difference between the two types of appraisals is the intended use/user of the report and the date of valuation. Estate appraisals are usually based on the retrospective market value as of the date of death, whereas a market appraisal, as you have named it, is usually for loan or sale purposes and is often effective the date of inspection of the property.
As Niicss has pointed out, it is common in some areas of the country for realtors to complete a CMA or comparitive market analysis. However, in some states it is prohibited for realtors to perform these types of valuations with the exception of developing a price for a listing. In these states, an appraisal can only be completed by a professional appraiser, licensed or certified in that state.
I hope this has answered your question.
