The appraisal is a very important piece…
If you’re planning on filing for bankruptcy and have a home, you more than likely will need to provide proof of the value of your real property AKA your home. This is normally done by having your home appraised by a certified residential appraiser.
The bankruptcy appraisal is a report for court purposes. The appraisal report will determine the market value of residential real property in bankruptcy proceedings.
Given the unpredictable and ever-changing real estate market, you definitely want to have an independent appraisal from an appraiser who is adept at providing bankruptcy home values.
Make sure to hire a local appraiser experienced with bankruptcy appraisals. This will lessen the likelihood of the appraisal report to be challenged or rejected by the bankruptcy court.
How does an appraiser determine the value of your home?
When determining the value of your home, the property appraiser will look at:
- The size of the home and property
- The condition of the property
- The overall real estate market in the area.
Also, the appraiser will make notes of certain things:
Any deficiencies in the property, the area around your home and any deferred maintenance.
Based on this, the appraiser will do extensive research to determine the fair market value for your home. Anything that would lower or increase the value of your home will be considered in the appraisal for court.
Having your home appraised is a necessary and crucial step in the bankruptcy process. You and your bankruptcy attorney should review the report very carefully.
If you are having to file for bankruptcy and your home is part of the equation, it is truly in your best interest to hire a local certified property appraiser. One with experience conducting bankruptcy home appraisals in our area. He or she will know exactly what is mandated by the courts.
The law surrounding bankruptcy law is complicated and the facts of each case are unique. This article provides a brief, general introduction to the topic. This is not legal advice. Please contact a bankruptcy attorney to provide legal advice. As with any legal matter, we highly recommend consulting with an attorney.