When dealing with bankruptcy, you need to be as accurate as possible when you estimate your home’s value. Often an attorney will recommend their clients contact a local real estate appraiser to accurately assess its current fair market value.
Significant discrepancies in the value of your home can create problems in bankruptcy. If the value is listed too low the client runs the risk of a trustee objecting to their scheduled valuation and potentially asking the court for permission to seize your home.
A ‘low ball’ value will call your honesty, truthfulness, and credibility into question in future proceedings with the Bankruptcy judge, trustee, and opposing counsel. If a value is listed too high, a client may miss out on the availability of Chapter 7 and/or end up paying back more than necessary in Chapter 13.
Real estate appraisers perform an integral function in the bankruptcy process. Appraisers estimate asset collateral values of secured creditors and debtor-in-possession (DIP) financings; help to identify and value sale/leasebacks, spin-offs, licensing, and other re-organization opportunities; and are often involved in structuring and valuing restructured debt and equity instruments as well as assessing and opinionating on the fairness of proposed reorganization plans.
For these reasons, bankruptcy professionals quite often need to hire, work with, and rely on experienced real estate appraisers. Our team understands the complexities involved in assessing the value of a property under these difficult circumstances and works hard to provide you with the best possible experience.
If you need a real estate valuation, call us today for a free consultation. We offer competitive rates and fast turnaround times. Let us help you make informed decisions about your property.