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Other Reasons to Order an Appraisal
There are many reasons to obtain an appraisal. The most common reason is for a real estate or mortgage transaction, but we have compiled a list of other reasons you may need to order an appraisal.
To Settle an Estate
Taxing authorities such as the IRS often require appraisals to establish the value of an estate when a death occurs. Most estate appraisals are ordered by attorneys, not by the survivors.
To Establish the Replacement Cost for Insurance
Appraisals obtained for establishing the loss risk in case of fire are often limited to providing an estimate of the replacement or reproduction cost of the improvements.
To Establish Just Compensation for Condemnation
The appraiser may represent either the landowner or the condemning authority. Usually, the government entity that needs the land for public use orders an appraisal and offers to purchase the land for the value indicated by the appraisal. If the landowner feels that the amount offered by the condemning authority is not enough, then the landowner may also order an appraisal.
To Contest High Property Taxes
If property owners feel that their property is assessed too high, then they may order an appraisal from a qualified appraiser to contest the assessment.