As an executor or executrix you have been entrusted to carry out the wishes of the deceased. When there is a valid will, the legal process is commonly referred to as probate. Settling an estate can be a time consuming, emotional and a stressful job. To execute your job successfully it will be necessary to hire professionals. Those professionals can include a real estate appraiser/home appraiser, an accountant and an attorney.
When settling an estate that has residential or commercial property an appraisal will be needed. What is an appraisal? An appraisal is a logical thought process used to determine an opinion of value. There are three common approaches to determining value.
The Sales Approach - This is the most common approach and best indicator when appraising residential property. This approach uses recently sold sales, which are similar and comparable to the "subject". They will also be in close proximity to the subject. Subject - property that is being appraised.
The Cost Approach- This approach will determine the cost to replace the subject plus the land value.
The Income Approach - This approach is used for estimating what an investor would pay based on the income that is produced by the subject.
When settling an estate, the appraiser may use any or all of these approaches depending on the property that is being appraised. However, a retrospective appraisal report will be completed. A retrospective appraisal report will reflect the fair market value for the date of the death, which is the date of the estate.
State certified appraisers are governed by the ethics provision within the Uniform Standards of Professional Appraisal Practice (USPAP), which binds the appraiser with confidentiality and ensuring the fullest degree of discretion.
The attorneys, accountants and all other parties involved depend on a detailed appraisal report. The report that the appraiser produces, demonstrates to the authorities that the data used is well founded and substantiated. Hours of research go into an appraisal report when properly completed. Having a professional appraisal report gives the executor or executrix solid facts and figures for local, state and federal agencies for filling estates and wills.
National Appraisal Network Inc. is located in New Jersey and has over 20 years of experience. Their state certified real estate property appraisers specialize in Sussex County, Morris County, Warren County, Hunterdon County, Passaic County and Bergen County.
For further information please call (973) 209-7747 or visit http://www.national-appraisal-network.com
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