The Bankruptcy appraisal is a appraisal report that is for "Court Purposes" in setting the market value of residential or commercial real property in a bankruptcy proceeding. Appreciated Value Corporation has developed a way to satisfy the court requirements and the attorney/client requirements as quickly and easily as possible.
Credibility of the appraiser/valuer and his or her appraisal is of the utmost importance in a bankruptcy petition.
There are many forms of valuation evidence available, however the key in a bankruptcy proceeding, particularly when the difference between a chapter 7 or 13 is the credibility. The trustee and/or the judge will be the final arbiter.
Credibility is often dependent upon the type of valuation reporting format utilized as well as the experience and reputation of the appraiser / valuer.
Here is a list of valuation reporting formats listed in the order of their respective credibility (in your bloggers humble opinion - listed lowest [top] to highest [bottom]).
1. Paid AVM [Automated Valuation Model].
2. Desktop Appraisal [no inspection of subject property].
3. CMA [competitive market analysis]
4. Exterior only [drive-by] appraisal [no interior inspection of subject property].
5. Complete appraisal with exterior and interior inspection.
The experience, license/certification level and reputation of the appraiser is also crucially important. The more experience the appraiser posesses it stands to reason the more credible their report will weigh in the eyes of the trustee or judge. Licence/certification level is equally important.
The following are the license/certification levels in CA (highest [top] to lowest [bottom] -
Certified General real estate appraiser
Certified Residential real estate appraiser
(1) the appraisal of 1-4 family residential units without regard to value or complexity; and
(b) A certified residential real estate appraiser shall not appraise a residential subdivision, except that a certified residential real estate appraiser may appraise individual properties within a subdivision.
Licensed residential real estate appraiser
Licensed Trainee real estate appraiser assistant
(1) accepting responsibility for the appraisal report by signing and certifying the report;
(c) An appraiser assistant may have more than one supervising appraiser, but an appraiser assist must have at least one supervising appraiser for each appraisal assignment.
Photos used or lack thereof in the appraisal can also add to or detract from credibility. Photos of the subject property should be as of the effective date of the appraisal or explained why not. The should be crisp/clear and at minimum should include front, rear,street and sufficient interior photos to allow the reader to understand any adjustments made for condition or degree of modernization. If repairs are needed, descriptive photos of same add credibility. Photos of comparable sales should reflect the comparable as of the date of sale as accurately as possible - when using MLS photos, an explanation [why] should be included [Pacific Appraisers typically includes both our photos and the MLS photo - with explanation, when there are signification changes subsequent to the sale.
It is imperative that you choose the most credible valuation alternative, particularly when the difference between chapter 7 and chapter 13 hangs in the balance.
We stand ready to assist with bankruptcy appraisals throughout Southern California. We are very much aware of the impact the mortgage crisis has had on individual homeowners as well as lenders. You can count on Appreciated Value Corporation to quickly and competently perform bankruptcy appraisals.