Appraisals

An appraisal is a process through which a licensed real estate appraiser determines the market value of a home. The appraisal process is a systematic procedure the appraiser follows to develop an opinion of market value using standards set forth in the Uniform Standards of Professional Appraisal Practice. The appraisal report is a legal document commonly used to establish the value of a security for a mortgage loan. 

A home valuation is a real estate agent’s estimation of what your home could sell for in the open market based on a Current Market Analysis of active listings and recent sales in that area. The home valuation is not an official valuation and holds no weight with lending institutions.

A Date of Death Appraisal is a “retrospective appraisal” conducted by a licensed appraiser and is used to establish the market value of real estate on the date the heirs inherited the property. It is often required to establish the new “stepped-up basis”, as of the date of death, in order to determine the capital gains tax. 

To get ready for your appraisal appointment, please make sure all areas of the home are accessible to the appraiser. If you have a multi-unit or investment property, make sure all tenants have been given 48-hour notice. Make sure pets are properly secured. It helps to provide the appraiser with a list of recent improvements, cost of improvements and permit numbers if applicable. For condominiums, please provide the HOA contact information. 

While the home’s value is closely tied to current real estate market conditions, there are things that can be done to maximize value potential.
Here are some steps you can take: keep the home well maintained, clean, painted and in good condition; modernize the kitchen with stainless steel appliances, resurface or replace dated cabinetry, install solid surface granite or engineered stone counter tops; update the bathrooms with contemporary fixtures.

Remember to create a good first impression! Homes with good curb appeal typically receive a premium in the market. Keep your front yard nicely landscaped and have contemporary front paint and trim. 

In most real estate transactions, the lender orders the appraisal and therefore owns the appraisal report and has the rights to use the report or information contained within. However, the lender is legally obligated to provide a copy of the appraisal report to the borrower. When a homeowner hires the appraiser directly, the homeowner owns the report and may determine how the appraisal can be used and who will have access to the report. 

Most appraisal appointments are completed within 30 minutes. Larger homes and/or complex properties may take additional time.

No, the appraisal report is not provided to the local tax authorities.

There are a number of websites that now offer instant home value estimates. However, due to constantly changing market conditions and the unique characteristics of each home, online home valuation services are often inaccurate and misleading.

An appraisal will account for your home’s characteristics and current market conditions in your neighborhood. Only a Licensed or Certified Real Estate Appraiser can provide you with a credible opinion of value.

Maui is a unique real estate market. To get an accurate appraisal the first time use an appraiser who is geographically competent with years of local experience and the expertise. 

Certified appraisers have a greater number of years of experience and education over licensed appraisers. In addition, certified appraisers have no limit to transaction values and complexity of assignments.

Have further questions? Please don’t hesitate to call John at 808-476-9966 or email [email protected].