Court decisions are based on the evidence presented. Appraisals that aren't adequately documented or don't cover the correct time period may not be defensible in court. This can lead to delays, additional costs or inequitable property settlements. Defensible divorce appraisals require a well-qualified appraiser to determine the property value often years in the past as well as project what the value will be months into the future.

Property values can dramatically change during the minimum six month divorce waiting period. Appraisals need to reflect the expected future value at the anticipated divorce finalization date.

Real estate owned prior to the marriage becomes a joint asset at the time of the marriage. It's the change in value between the marriage date and divorce date rather than the original purchase price that is used to determine equitable property settlements. Unless an appraisal was done at the time of marriage, an additional retrospective appraisal is needed to determine the value at the time of marriage.

Homeowners with a down payment of less than 20% of the property’s value are frequently required to obtain private mortgage insurance (PMI) by their lender. This insurance policy protects lenders from the risks of default and foreclosure.

The Homeowners Protection Act of 1998, also known as the “PMI Cancellation Act” enables you to cancel your PMI when your loan to value ratio reaches 80% (i.e., the remaining principal balance on the loan is 80% or less of the original value of the home). PMI costs can be up to 2% of your mortgage payment.

You can save hundreds of dollars each year simply by removing your PMI. The PMI Cancellation Act establishes standardized procedures for the removal of PMI coverage. If you have a good payment history, submit a written PMI cancellation request to your lender. You'll be required to provide evidence that the value of the property has not declined below the original purchase value. To meet this requirement, include an appraisal for the current market value with your request.

Estates (combination of real estate, cash, stock, and other assets) valued over $5.25 million are taxed up to 40%. Obtaining an appraisal to determine the current real estate value during the planning process helps ensure a sound strategy, equitable distribution and prevent disputes.

For example, real estate appraisals are used to establish relative values in situations where estates are to be divided among heirs rather than sold. They are also used when gifting real estate to heirs or charitable organizations.

It is the responsibility of the estate's executor to conduct a full and accurate accounting of the fair market value of all the estate's components. This includes accompanying a retrospective real estate appraisal with the federal estate tax return to establish the property's fair market value at the decedent's date of death. The IRS requires that the appraisal be performed by a qualified appraiser (as defined by the IRS) in accordance with generally accepted appraisal standards such as the Uniform Standards of Professional Appraisal Practice (USPAP).

Loans for unusual properties can be denied if appraisals do not clearly demonstrate the property’s true value. Lenders know that the value of homes with a unique physical design, one of a kind features, special construction materials or an unusual characteristic cannot be accurately determined by comparing them to typical homes as in a market approach appraisal.

Accurately appraising a unique property is best done by using a cost approach appraisal. With this method the value is determined by calculating the market value of the land as well as the replacement or reproduction cost of the building adjusted for depreciation and/or obsolescence.

To determine the true value of unusual property and help ensure that your loan will be approved, it’s important to use an experienced appraiser that has considerable construction knowledge as well as access to accurate local building material and labor cost data.

Whether dissolving a formal or informal partnership, it's important to have all of your real estate assets independently appraised for their current fair market value.

An unbiased appraisal ensures a fair distribution by using it to determine an appropriate buyout price in accordance with each partner’s investment percentage.

Should it be necessary to involve the court, a comprehensive and properly documented appraisal is required to defend partnership termination positions. Even if the appraisal’s property valuation is accurate, lack of supporting data or improper documentation can lead the court to rule in favor of the other party.

Your investment could be at risk if you're buying real estate with unpermitted construction or if it doesn't meet current land use zoning regulations (i.e., is non-conforming). Bringing unpermitted construction up to current building codes is likely to be costly.

You may be assessed retroactively for back taxes on the additional square footage if unpermitted additions are reported to the taxing authorities. Additionally, insurance companies often don't cover unpermitted additions which expose you to legal and financial liability.

The property you intend to buy may have lost its legal non-conforming status because it hasn’t been in continuous use or the use has significantly changed. Should the structure be damaged or destroyed, you may not be allowed to rebuild it. Obtaining a comprehensive appraisal will help uncover zoning and unpermitted construction issues giving you the opportunity to make an informed decision.