Why get an Appraisal
Common Ways to Divide Real Estate
​
-
-
Buyout: One spouse keeps the property and pays the other for their share of the equity, often requiring a refinance or Mortgage Assumption.
-
Asset Swapping: One spouse keeps the home while the other receives an equivalent amount in other assets, like retirement accounts or investments.
-
Sale of the Property: The home is sold on the open market and the net proceeds are divided equitably.
-
Enforced Sale: If an ex-spouse fails to comply with terms in a Property Settlement Agreement (PSA)—such as removing the other's name from a mortgage—a New Jersey judge has the equitable power to force the sale of the property.
-
​​​​
Quitclaim Deed is a legal document that transfers a property owner's interest to someone else without offering any guarantees or warranties regarding the validity of the title.
A Warranty Deed is a legal document used in real estate to transfer property ownership while guaranteeing that the title is clear and free of hidden claims or liens
Why get an Appraisal
An Appraisal is an estimate of a property's fair market value. It's a document generally required (depending on the loan program) by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property. The Appraisal is performed by an "Appraiser" typically a state-licensed professional who is trained to render expert opinions concerning property values, its location, amenities, and physical conditions.
WHY GET AN APPRAISAL Obtaining a loan is the most common reason for ordering an Appraisal, however there are other reasons to get one: Contesting high property taxes Establishing the replacement cost for insurance purposes Divorce settlement Estate settlement Negotiating tool in real estate transactions Determining a reasonable price when selling real estate Protecting your rights in an eminent domain case A government agency requirement A lawsuit
Switching Appraisals to a different Lender
Yes. In most cases you will not have to pay for another appraisal if you change your mortgage company, and depending on the loan program typed, the first lender can transfer it to the new lender. Some appraisal firms may charge a small fee because additional clerical work is required to reflect the new mortgage company; this is called an "Appraisal Retype Fee". The original mortgage company has the right to refuse to transfer the appraisal to another lender. In this case, a new appraisal is needed.
Determining Property Market Value
The property seller sets the price, especially for residential property, not the Appraiser. Sellers usually don't order an appraisal because they want to obtain the highest price for their home and therefore don't want to be bound by the Appraiser's assessment.
The real estate agent receives a percentage of the price as compensation and often represents the seller in the transaction and assists them in setting the sale price. They perform a Comparative Market Analysis (CMA), which real estate agents in most states are allowed to perform without an Appraiser's License or Certification. The CMA is vital to the agent’s preparation for a listing examining recent property sales in the neighborhood to arrive at a listing price. Typically the agent will suggest a price to the seller based on the CMA however the seller may choose to list their property for a higher price.