MN Divorce Appraisals
Divorce is a very difficult, if not a traumatic experience. And is often only exacerbated by the fact of what’s going to happen to the house. If one of the parties wants to keep the house, then they’ll need to establish what a fair market value is. This is usually done in one of three ways, or in a combination there of: tax assessed value, an appraisal from a certified appraiser, or a Realtors’ market analysis.
Whatever method is used for determining value they should be familiar with IRS Real Property Valuation Guide Lines, especially if the report will be used for tax purposes in the future.
Many times a second appraisal may also be needed to establish a value if one of the parties owned the home prior to the marriage. Knowledge of how to perform a retrospective appraisal is critical and essential.
Appraisers are not supposed to be advocates; however, that doesn’t mean that one can’t lend a listening or comforting ear. While there are times when one-or both sides may be pressuring for a lower/higher value, most of the time I find that the parties involved just want to know what the fair market value is for their home. I try and be sensitive to the situation, and I always remind the parties involved that I’m there just to gather the facts.
Reasons for ordering an appraisal:
- It insures that the rights of each party involved in the divorce are protected.
- It insures that the home is accurately valued.
- As long as the appraiser is impartial, it guarantees that one partner will not be able or inflate or undercut the value of the property.
- It allows the parties involved to make the best out of a bad situation.
- A properly done appraisal will meet IRS valuation guidelines, along with state and federal guidelines.
Michael Bolton has been in the real estate business since 1988 and has performed Divorce, Estate Planning, Tax Appeal, Litigation, Foreclosure, and Mortgage related appraisals since 1997. When a defensible opinion of value is needed, be sure to choose an appraiser with the experience to get the job done.