Appraisal: Objective, third-party estimate of current market value
Birchland Realty has three Wisconsin Licensed/Certified Residential Appraisers on staff to assist you in all your appraisal needs. An appraisal is an objective, third-party estimate of the current market value of your home or property. Our professional appraisers have sufficient knowledge and experience to accurately estimate current value. We use comparable sales and listing data, as well as information about your neighborhoods, communities and regional locations. Finally the local and national economy are factored in to determine true value of your home or property. Contact us if we can be of further assistance.
Reasons for an Appraisal:
• to lower your tax burden
• to settle an estate
• to determine a reasonable price when selling real estate
• to determine a reasonable price when buying real estate
• to protect your rights in a condemnation case.
As part of your mortgage loan application, you’ll typically pay for a lender ordered appraisal on the house that you are buying. The reason for this appraisal is your lender needs to establish that the home/property you are buying is worth the loan amount you are requesting. On the flip side, you don’t want to overpay for your new house so a third-party appraisal is also to your benefit. Once the appraisal is complete, be sure to ask your lender for a copy of it. By law you are entitled to a copy of the appraisal.
No one knows the future of federal estate taxes or when property will be sold. It is always strongly recommended getting an appraisal as of the date of death to set the basis for capital gains.
Most estate appraisals are done to establish a new capital gains basis as of the date of death for the “marital exemption”. This is particularly important when the first spouse dies, as real estate is a “pass through” to the surviving spouse and no taxes are due at that time.
When the second spouse sells a property or dies, capital gains taxes are due, but only for an increase over the basis established when the first spouse dies.