In the intricate realm of real estate, appraisers play a vital role, offering unbiased insights that shape decisions worth millions. In this enlightening conversation with Glen Kangas, a seasoned appraiser, we delve deep into the nuances of the profession. Join us as we explore the world of appraisals, unraveling the complexities and gaining valuable insights into the methodologies, challenges, and the passion that drives this profession.
1. Understanding the Role of an Appraiser:
- Appraisers serve as independent, unbiased third parties in real estate transactions.
- Their primary role is to analyze, evaluate, and assign a value to properties, ensuring fairness and accuracy.
2. The Significance of Data Collection:
- Appraisers rely on meticulous data collection, including property inspections and comparable data analysis.
- Technology, especially computerized MLS systems, has streamlined the process, enhancing efficiency and accuracy.
3. Date of Death Appraisal:
- A ‘Date of Death’ appraisal establishes a step-up basis value, aiding families in minimizing capital gains tax liabilities.
- Challenges arise when properties haven’t been sold for several years, requiring appraisers to adopt forensic-like methods to determine historical values.
4. Handling Unique Properties:
- Unique properties, like architectural gems or expansive estates, pose challenges in finding comparable sales.
- Appraisers often venture into different regions, comparing not just the property features but also the market dynamics, ensuring accurate valuation.
5. The Income Approach in Residential Appraisals:
- The Income Approach is crucial for multi-unit properties and areas with rent control policies.
- Analyzing rental incomes helps determine the property’s worth, especially in areas where income generation significantly influences property values.
6. Fractional Interest Properties:
- Fractional interest properties often come with marketability discounts due to their complexity in selling.
- Case laws and real estate expertise guide appraisers in determining accurate values for such properties.
7. Appraisal Challenges and Problem Solving:
- Challenges arise in unique properties, unpermitted square footage, and unavailable property access.
- Appraisers employ detective-like methods, using historical records, permits, and creative problem-solving to arrive at precise valuations.
8. The Appraiser’s Passion:
- Appraisers like Glen Kangas are driven by a love for history and the thrill of solving complex puzzles.
- Their passion lies in uncovering the story behind each property, ensuring that the valuation aligns with both its past and future potential.
Glen Kangas exemplifies the dedication and expertise that define a remarkable appraiser. His insights provide a glimpse into a profession that balances analytical rigor with a deep appreciation for the unique stories properties tell. In a world where precision matters, appraisers like Glen play an indispensable role, shaping the real estate landscape one valuation at a time.
“I’m a big fan of keeping as much of your money as you can. So my favorite thing about date of death appraisals is it helps people not give extra tax money to the government.”
📇Connecting with Glen:
DISCLAIMER: The Probate Realtor® Matias Baker Masucci is a licensed real estate broker in California DRE # 02054763. Any legal information provided is for informational purposes only and NOT for the purpose of providing legal advice. Contact an attorney to obtain advice with respect to any particular legal issue or problem. We make no guarantees as to the accuracy of any information.