There are many reasons you may need an appraisal by a MAI appraiser. Chief among them are:
- Conservation Donation: If you are donating land, or a conservation easement, the IRS requires an appraisal to support your tax deduction.
- Financing: Appraisals for financing or re-financing purposes are typically requested by the lending institution rather than the property owner. These appraisals must also comply with FIRREA XI. Requires at least a Summary level appraisal.
- Purchase and Sale: The appraisal is typically requested by the prospective seller or by the potential buyer. A Restricted level appraisal is usually sufficient because the client is very familiar with the area, the local market, and the local economy.
- Estate Planning or Valuation: Often requested by the property owner to plan gifting to heirs. In the case of the death of an owner, it is required to settle the estate. Usually requires a Summary level appraisal because it will be submitted to the:IRS.
- Tax Abatements: Requested by the property owner who thinks their property assessment and taxes are too high. The appraisal is typically filed with the tax abatement. A Restricted level appraisal is usually sufficient, but check with the taxing authority to be sure.
- Eminent Domain Takings: When a governmental agency takes part or all of your property by condemnation (eminent domain), they have an appraisal done to establish the value. You cannot prevent the taking, but you can dispute the value by having your own appraisal done. Always involves your attorney because it will likely end up in Superior Court or your State’s tax appeal board (Bureau of Tax and Land Appeals in New Hampshire, State Board of Property Tax Review in Maine). Usually requires a Summary level appraisal.
- Zoning Variances: An appraisal is sometimes required when you are seeking a zoning variance to quantify the impact on nearby property values if a variance is granted. A Restricted level appraisal is usually sufficient.
- Contaminations: An oil spill or leaking gasoline storage tank can affect property values. Often involves your insurance company. Usually requires at least a Summary level appraisal.
- Divorce: Always involves lawyers who require an appraisal to divide the assets. A Restricted level appraisal is usually sufficient because all parties are familiar with the subject property.
