If you live in the greater Rancho Cucamonga, CA area, you may be in need of appraisal services. There are a number of reasons why people need proper appraisal services and KHG Appraisals offers a team of experienced, local Rancho Cucamonga CA appraisers who are highly respected and provide excellent, accurate appraisals in a short period of time. Learn more details about all of our appraisal services below:
It is advisable, by most experts, that before any real estate settlement agreement is finalized, both parties seek the advice of a tax attorney or tax professional to go over the real estate tax implications in a California dissolution of marriage.
If you are divorced or separated from your spouse and have California real estate, it is important to obtain a defensible appraisal report that is acceptable to both the courts and the IRS from a qualified appraiser that can also be used by your attorney in a settlement proceeding, mediation, or arbitration matter. In both of these instances, selection of a qualified expert appraiser is very important.
When ordering an appraisal from KHG Appraisals you can be certain that you will get professional, friendly, fast service and the finest quality residential reporting. We also know how to deal with the painful and sensitive needs of the divorce process. It is equally important that you select a residential estate specialist who has the experience and knowledge necessary to prepare appraisals according to IRS Real Property Valuation Guide Lines.
Attorneys and accountants, dealing with a divorce, depend on appraisers when establishing real property valuations for estates, estate tax return filing, separations, marital conflicts, personal bankruptcy, or partnership dissolutions requiring a value being placed on homes or investment real property. As real estate experts we realize the divorcing parties’ needs and we are used to dealing with all parties concerned. We can prepare residential real estate reports throughout Southern California that are in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP).
If you are a family law attorney dealing with division of real property assets, your requirements quite often include hiring an appraiser to determine “Fair Market Value” (FMV opinions) and to offer expert testimony. Many times the separation date is different from the date you order the appraisal. In those cases, we are familiar with the steps and requirements needed to preform retrospective valuations with an effective date and “Fair Market Value” matching the date of separation. As with any appraisal, we maintain confidentially and impartiality.
Local attorneys suggest that many trustees managing chapter 7 and 13 bankruptcies will allow a broker’s opinion of value (BPO) or even a Zestimate. This means it’s likely you will not be forced to get a proper real estate appraisal which helps in maintaining your overall costs and expedites the procedure; however, you should understand when it may be relevant to obtain an appraisal.
Appraisals are often necessary when determining the secured position of a claim under section 506(a) and (b) of the bankruptcy code, or when avoiding a judicial lien under section 522(f).
Under section 506, a secured claim (e.g. a mortgage, an equity line or a tax lien) is only protected to the extent of the value of the property. For example, a house with a first mortgage balance of $500,000 and a second mortgage balance of $50,000 that is worth only $355,000. An appraisal would be used to make the case that the second mortgage is unsecured, and therefore its lien can be eliminated and it is treated as a general unsecured claim.
There are many subtleties and caveats to how this works, but usually, an appraisal is only required where value is likely to be in question. When this occurs either you or your attorney would to retain the services of an experienced professional real estate appraiser to provide an opinion of the fair market value of the home.
According discussions with local attorneys, judges will not accept a Zestimate or BPO for anything like this even when the creditor does not disapprove. This is likely due to the fact that BPOs are not considered accurate for federally guaranteed mortgages (FNMA) and Zillow publishes its own comparison of actual sales prices vs. their Zestimates which reveal an alarming rate of inaccuracy.
That said, in instances where the value will make a difference, having a certified appraiser who can provide clear testimony, can be extremely important. The appraisal should include a well-supported report that is defensible in court. State and Federal laws demand that the appraiser and the appraisal process be separate from any influence, coercion or pressure. This guarantees that the appraiser remains a truly unbiased third party.
In many instances the date of the “current value” differs from the actual effective date of the appraisal. This requires a retrospective appraisal with an “effective date” and opinion of value corresponding to the bankruptcy filing or some other relevant date in the past, depending on the case. Our team, of state certified appraisers at KHG Appraisal, has considerable knowledge working with the complexities of assessing the value of a property under these difficult circumstances.
Our strategy: A bankruptcy is usually one of the most distressing and difficult times in a person’s life. We understand the need to handle these situations with the greatest care and will work hard to provide the best possible experience. We are restricted by the ethics provision inside the Uniform Standards of Professional Appraisal Practice (USPAP) which signifies you are assured the highest level of confidentiality, guaranteeing you the utmost discretion. In addition, we provide you with a thorough appraisal report that meets or exceeds expectations of the courts, IRS and other agencies.
By retaining KHG Appraisal you’re guaranteed that you will get the best in professional service and courtesy, while also receiving the highest quality appraisal reports. Our Chief Appraiser, Ken Gillespie, SCREA will finish and/or personally review your appraisal. Our extensive experience includes working with local and prestigious law firms in the Inland Empire.
Bail Bond Appraisals
An appraisal is usually required to establish security for a bail or immigration bond when your loved one is under arrest or some type of custody. These types of appraisals require immediate action because when real estate is offered as a security, you need to know what a property is worth, and you need to know it fast.
Usually this requires us to stop doing work on other appraisals already in progress, rearrange appointments, and much more in order to concentrate strictly on your present needs. These kinds of appraisals receive our highest consideration and our service is discreet to guarantee your privacy.
Our team of certified appraisers at KHG Appraisals understands the difficulties involved in evaluating the value of a property under these difficult situations and work hard to provide you with the best possible experience.
Our Chief Appraiser, Ken Gillespie, has extensive experience in working with local bail bond companies as well as a significant number of local law offices when it comes to bail bond proceedings.
Estate Planning & Death
When an estate has a transfer of ownership due to death or inheritance, it is very common for a real estate appraisal to be needed for tax reasons. Often times during the settlement process either a lawyer or accountant will order an appraisal or have a family member or executor select an appraiser for the job.
It’s been our experience that estate settlement appraisals are generally ordered between 2-6 months after the death of a relative or inheritance of a property. Occasionally an appraisal is ordered almost immediately as opposed to other times and the time period may be as long as a year or more depending on the circumstances at hand.
Retrospective appraisals are fairly common in estate settlement situations. These consist of appraising a home based around a ‘prior date’ which is usually the owner’s date of death; hence estate appraisals are often called ‘date of death’ appraisals.
In addition to seeking a retrospective or date of death appraisal in the course of the settlement process, quite often the ordering party will also request a ‘current value’ appraisal in order to determine current market value for purposes of sale or settlement involving heirs.
Whatever your needs or the elapsed time, our team of certified appraisers at ‘KHG Appraisals’ understands the difficulties involved in assessing the value of a property under these stressful circumstances and we’ll provide you with the best possible experience.
Keep in mind, every estate situation is unique and the type of appraised value required depends on the particular needs of the estate. This isn’t something you need to be troubled about as a good attorney or accountant can easily help guide you toward the type of value required for the estate. Additionally, we’re happy to speak with your attorney or accountant to make clear exactly what’s required for your situation.
Our Chief Appraiser, Ken Gillespie, has over 14 years’ experience in dealing with estate and date of death valuations. In fact, a significant number of attorneys, accountants and financial planners have come to rely on Ken Gillespie and ‘KHG Appraisals’ for our opinion when formulating real property values during estate settlement proceedings.
Financial Planning & Trusts
Real estate holdings are often at the heart of the plan as they’re generally the client’s largest assets. Regardless of whether you need an appraisal for a single property or several appraisals for an entire portfolio we understand the process involved. We’ve furnished appraisals for Estate Planners throughout the Inland Empire for a variety of trusts, estate purposes, tax planning, asset update purposes, and more.
Over the years ‘KHG Appraisals’ has distinguished itself as one of the Inland Empire’s premier providers of appraisals for estate and financial planners and we’re acutely aware of the detail, skill and attention required to properly value these type of properties. We also guarantee complete discretion and are sensitive to the needs and privacy of those who are living in these homes.
If you’re a senior, it’s also important that you get your affairs and estate in order as you transition into your retirement years which include knowing the value of your properties. There’s no reason to feel overwhelmed during this process as we’ll fully explain the appraisal process up front and when the report is finished we’ll personally go over the report with you to answer any questions you might have.
Estate Planners within the Inland Empire have come to depend on our appraisal services to create the foundation of a sound financial plan for their clients and we welcome the opportunity of working with you as well.
Equestrian & Specialty Properties
In most ways, horse properties are much the same as any other residential property, as many of the same concepts and methods apply in the appraisal process. Frequently buyers and sellers worry more about the number of horses that can legally reside on the property than anything else about the property.
With the ever changing landscape of the Inland Empire area, as well as, its continued development, the line between urban, suburban and rural property is continually changing. This change is also reflected in the per acre value of your farm or ranch.
Whether you’re selling, buying, refinancing, or going through estate planning, let our professional hands on experience and knowledge assist you in the process of establishing your property’s value.
PMI Removal Appraisals
PMI, the acronym for private mortgage insurance, enables individuals to buy their home with less than a 20% down payment. If you are having to pay PMI, the question you need to ask yourself is; “Is it time to stop paying monthly PMI into an escrow account and instead start putting that money into your pocket?”
Each month, if you’re like many of us, you dutifully pay your mortgage. Have you ever before given any thought to what really makes up your monthly payment? For most people, the mortgage payment not just pays off the mortgage, but a portion also gets put into an escrow account to pay for property taxes and a number of different types of insurance (homeowners, hazard, flood, PMI, etc.).
If you purchased your property with traditional financing and put less than 20% down, it’s likely you’re paying PMI. Private mortgage insurance shields the bank or investor against loss if a borrower stops making payments. Frequently, homeowners mistakenly pay this insurance for years after it’s no longer needed and as a result end up paying thousands in unnecessary insurance premiums.
Here’s the good news that many homeowners don’t know – Once you’ve hit 20% equity in your home by appreciation, improvements made to the home or by paying down the principal balance of the mortgage (or any combination of the three), you can request the lender terminate the private mortgage insurance. All you have to do is ask in writing that the private mortgage insurance be terminated and provide the lender with proof of sufficient equity over 20%.
In most cases, the required proof is an appraisal by a state certified appraiser. Recent legislation (the Homeowners Protection Act) requires servicing lenders to make homeowners aware of the existence of any PMI they might be paying for and the criteria necessary to have it cancelled. The good news is, you don’t have to wait for the lender’s notification to rid yourself of PMI. Normally, if you have equity of 20% or more you’ll be able to cancel it almost rather quickly.
PMI is not required in all instances. The rule of thumb is that if a property owner has put down less than 20% down on a single family home, mortgage insurance will be required. Homes obtained with a down payment of at least 20% should have sufficient equity to cover any potential losses by the lender, so PMI is usually not required. We have seen a rise in the mortgage insurance industry because of the appeal of purchasing homes with less than 20% down. Mortgage Insurance Corporation of America (MICA) states that because the of mortgage insurance helping to make up for the difference in down payment, over 15 million Americans have been able to purchase homes over the past forty years.
PMI does not protect a homeowner against loss, so a borrower that’s required to purchase it will probably never deal with the mortgage insurance company itself. All dealings regarding mortgage insurance are generally handled by the lender. It’s also the lender who has the ultimate decision when it pertains to mortgage insurance, meaning how much and when the property owner has built up enough equity in the property to drop the insurance. For that reason one must remain in contact with the lending institution which services their mortgage (collects the monthly payments) to inquire about this type of insurance and the requirements necessary to have it cancelled.
In most instances after a homeowner has built up 20% equity for a single family, owner occupied in the home, they may begin to initiate steps to eliminating the mortgage insurance. The first step is to contact the financial institution to where you mail your mortgage payments (loan servicer). It might or might not be the same institution that gave you the loan initially. Your loan servicer should be able to help you with the cancellation procedure. Loan servicing institution may have different guidelines regarding this procedure. Ask your servicing lender give you in writing their specific requirements to cancel PMI insurance.
Bear in mind it’s the servicer’s ultimate decision and they’ll take many things into consideration, including the borrower’s payment record over the life of the loan, before allowing you to drop this insurance. This factor alone could change the servicer’s decision.
You are, essentially, your own financial advisor, and even the smallest expenses should be eliminated if at all possible. By continuing to carry PMI which is no longer compulsory or needed, only reduces the amount of money you have in your pocket or your bank account.
Most lenders require an appraisal by a state certified appraiser as the proof required to eliminate needless PMI insurance. At KHG Appraisals we are experts in helping people just like you rid themselves of unneeded and unwanted PMI insurance.
We offer a free initial consultation that will help you to determine if you have sufficient equity in your home to enable you to cancel your PMI.
Pre-Forclosure & Short Sale Appraisals
We produce high quality appraisals with accurate opinions of fair market value for mortgage banks, and mortgage servicing clients, as well as, “quick sale” forecasts that recognize your specific schedule.
Our foreclosure and short sale appraisal services appeal to the needs of homeowners in default, banks with real estate owned properties (REOs), mortgage lenders, HUD, FHA, law firms, loan service companies and other financial businesses that make individual and commercial loans.
For commercial real estate in foreclosure and bank owned real estate (REOs), owners and banks alike want to know the difference between “fair market” value and “quick disposition” value in order to identify the potential equity position or charge-off liability. Regardless, whether the real property is residential or commercial the fair market value in an ever changing market is crucial to reducing non- performing inventory of REO real estate.
Owners of real estate which are in foreclosure are confronted with many challenges. Some are reluctant to allow an inspection of the property or if they’ve already abandoned the property, they may have neglected the care of the home for a period of time, or even purposely caused damage.
We have both the understanding and experience to deal with the specific aspects of foreclosures and short sales, which is why you can rely on our reports to minimize your losses.
Tax Assesment Appeals
Sometimes, matters like this can be resolved with a phone call. However, if after discussing your assessment with your local taxing authority you still feel as though your home has been overvalued, a professional, independent, third-party appraiser is often your best choice in proving your case.
That’s where KHG Appraisals comes in. There are plenty of different procedures for appealing tax assessments so it’s important to enlist the help of a professional appraisal company that’s experienced and skilled in the ins and outs of the appeal process.
Prior to hiring an appraiser it often makes sense to do your own research before determining whether to move forward with a property assessment appeal, particularly before making the choice of hiring a professional appraiser.
Bear in mind, according to the Uniform Standards of Professional Appraisal Practice (USPAP), we as appraisers are not allowed to take “shortcuts” —for example, your research – and use it as face value as part of our impartial evaluation. When you hire us for an assessment appeal, you’re commissioning us as an independent, third-party to perform a professional appraisal report.
As such, we do our own analysis from beginning to end. If you’re correct that your property has been overvalued, an independent report such as ours will be more persuasive than any other evidence you can provide on your own. But once again it does hinge on our ability to do the work independently.
Pre-Listing, Pre-Purchase, FSBO
So it’s common for homeowners and realtors to rely on appraisers for assistance when establishing a list price for the sale of their home.
That’s where KHG Appraisals will come in as we have a long history of working with homeowners trying to sell their own home, as well as, realtors needing additional help for their own listings (or to prove to their clients the true market value of a property).
At KHG Appraisals we can provide you with a certified 3rd party appraisal, which is far more precise than a realtor based Comparative Market Analysis (CMA). A pre-listing appraisal ensures both you and your agent have an accurate description of your home’s features and a detailed analysis of the most recent and comparable sales.
In addition to helping you set a reasonable selling price so your home will appeal to buyers, a certified appraisal:
Offers an effective tool for negotiating with potential buyers and their agents
Helps instill confidence in prospective buyers since you have written proof of your home’s value
Highlights straight up any obvious repair problems which helps reduce last-minute repair problems that might delay closing
Lessens the chances of sales falling through due to unforeseen problems
Bear in mind that overpriced homes generate far fewer buyers, which mean fewer and possibly no offers, wasting valuable time, money, and efforts while an underpriced home can end up in a lower selling price and you leaving substantial money on the table.
Obtaining a pre-listing appraisal will help you and/or your realtor ascertain a true list price for your property, as well as, maximize your chances of selling quickly for top dollar. What’s more, we can help you determine what, if any, improvements would be the most cost effective in adding additional value to your home.
A full appraisal may or may not be necessary depending on what it is you’re looking for. Often times a more limited valuation or market analysis report is entirely suitable, whereas other times a full interior and exterior valuation may be necessary.
Home Measurement Service
As a Realtor, the MLS as well as your Broker-In-Charge requires you report an accurate and detailed summary of your listing when you enter them into the MLS so there are any number of reasons to get a professional measurement on your listings. The home may be a large or complex measurement assignment that you’re simply not comfortable measuring yourself. As an agent, you don’t want to be held liable for the square footage as listed in the MLS.
Here at KHG Appraisals we offer two types of home measurement services. Our home measurements and floor plans are legal documents that have many uses ranging from individual home sales to tax protests.
Home Measurement: This is the most popular type of home measurement service requested to date. This service is designed to provide our clients with an accurate and affordable solution for determination of a home’s GLA (gross living area). This basic service can be instrumental in assisting homeowners or realtors with the listing of their homes. Having the correct GLA in your listing can save you time and money and help expedite the sale of your home!
Floor Plan Recreation: Perhaps your needs are more comprehensive than a simple verification of the subject’s GLA? A Floor Plan Recreation is an accurate and affordable tool for marketing your home! The Floor Plans we provide show accurate GLA of the home with approximate locations of interior walls, doors, appliances and plumbing fixtures. The Floor Plans also illustrate basic room dimensions to give potential buyers an idea of each major room. This service can be very useful when attempting to sell your home or looking to make additions or changes.