![]() ![]() A business valuator will produce a business valuation report which estimates the current value and the projected future value of the business or the ownership interest in the business. If a business, or the ownership interest in a business, must be divided, then one or both spouses should hire a business valuator. Often, business valuations are only necessary if a spouse started a small business during the marriage or in the case of jointly owned businesses. Often what a couple paid for a home may not reflect its present market value so spouses should always obtain an appraisal during the divorce process. Marital homes absorb much income throughout a marriage whether in maintenance, upgrades, mortgage, etc. Two assets should be valued especially carefully in California: Homes and Businesses Valuation of a House Related: Community Property Laws in California Valuation of Property in a California Divorce Understanding Community Property in CaliforniaĬommunity property qualifies as all of the following which partners acquired together during their legal union [including property and assets located outside California:Īll of the above are assets that can be split between spouses as dictated by The Judicial Branch of California in Dividing Property and Debts in a Divorce Document. Dividing marital properties and assets can be tricky and painstaking. Here’s what to know about property value in a California divorce.Ĭalifornia is a community property state meaning unless partners have signed a premarital or postnuptial agreement, they are expected to divide community property 50-50 when divorcing or legally separating. This recent change was brought on with the Home Valuation Code of Conduct HVCC, and is effective with conventional loans originated on or after May 1, 2009.In the absence of a prenuptial agreement or postnuptial agreement, a Californian divorce results in a division of assets and property in half. Neither you or your lender have the flexibility of deciding which appraiser will inspect your home. If you’re interested in what specifically appraisers are looking for, here is a copy of the blank 1040 URAR form that is used by every appraiser in the country.Īppraisers hired for a mortgage transaction on a conforming loan are chosen from a pool of qualified appraisers at random. Since the appraisal provides half the weight in any credit decision involving the security of real estate, the appraisal should be done by a qualified, licensed appraiser whom is familiar with your neighborhood, and the type of home you are buying, selling or refinancing. When entering your home, they are going to look at the overall design, condition, finish work, upgrades, any defining features, functional utility, square footage, number of rooms and health and safety items.īe sure to have all carbon monoxide and smoke detectors in working condition. ![]() Is the property functional as built – style and use?Ĭurb appeal, lot size, & conforming to the neighborhood are obvious to the appraiser when they drive down into the neighborhood pull up in front of your home. Is the property conforming to the neighborhood? Quality of construction, finish work, fixed appliances and any defining featuresĪge, deterioration, renovations, upgrades, added features Location, view, topography, lot size, utilities, zoning, external factors, highest and best use, landscaping features… The Key Components Addressed In An Appraisal While a clean house will certainly make it easier for the appraiser to notice improvements, the only time you should be concerned about “clutter” is if it is damaging to the dwelling. The good news is that you don’t have to worry so much about pushing back an appointment a few days just to “clean things up” in order to help influence the value of your property. However, the appraiser actually already has a good idea of the property’s value by the time they have scheduled an appointment to stop by the property. ![]() Most people are surprised to learn what appraisers actually look at when determining the value of a real estate property.Ī common misconception homeowners generally have is that the value of their home is determined after the appraiser has completed their physical property inspection. By Brad Yzermans on Main Real Estate Appraisals ![]()
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