Determining the total value of an estate is an important part of estate administration. Real estate is often the primary asset of an estate, making its reported value a crucial variable in determining the amount of state or federal estate taxes owed, if any.  The reported value of real estate also has significant tax implications for the person or entity to whom the property passes.

While the estate administrator can use the assessed value of the real estate at the date of death, this approach has its drawbacks. First, no two pieces of real estate are identical.  Assessments do not take into account all the specifics of the property. This means that the decedent’s real estate could be overvalued. Second, every federal estate tax return (known as the form 706) is reviewed by the IRS. If the estate must file an estate tax return, comprehensive and detailed documentation of real estate valuation can help avoid hitches in the review process.

A wise approach to the stories of life from an icon in broadcasting.  Also a wise approach to the questions of real estate values.  The following chart shows median price for the Twin Cities Region, Single-Family, broken out by price range.  Seasonal variation is controlled by looking at December only for 2010, 2011 and 2012.  If you are in the upper middle price range, $200,000 to $300,000, values have changed very little.  Just a guess, but I would say this range of value has fewer distressed sales in the mix than the lower ranges, and fewer new construction properties than the upper quartile.  So the bottom of the market is showing the most improvement, and pent-up demand for new construction, combined with low interest rates, is driving the high end.  Just my $.02 worth, which is a true bargain considering it is free to my readers. 

Appraisals are a necessary evil required to close the deal, right?

Maybe you are an investor who would like to know what property to buy. I see all sorts of deals, more than most real estate agents over any given time period. Some of what I see may be of interest to you.

Don’t get me wrong, I am not licensed to represent buyers or sellers in the sale of real estate. But I can consult with you in many important ways. Like showing you what the upside is to repairing or remodeling a property. Or I could describe particular sub-markets that have the best ROI. My favorite scenario lately involves no remodeling or repair. I welcome your call.

Have you heard that house prices are up 9%?  That is what I read in the paper and hear on the news.  But if we take a closer look at the part of the market that affects the typical buyer and seller, that figure is in the 0% to 2.9% range.  The chart shows median prices of traditional sale properties in December 2012, 2011 and 2010, broken out by price range.  Traditional sale properties are the ones buyers prefer because they need a prompt response to their offer. Do buyers and sellers really care about what is going on in markets that don’t apply to them?  For an unbiased look at your particular situation, ask an appraiser.