Real Estate Appraiser: Purpose #1 of Real Estate Appraisals – Estate and Trust Planning

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Client Real Property Valuation Need: A family currently owns Commercial Real Estate, an office building in the city of Los Angeles, community of Woodland Hills. Last year, the mother had passed away, the father and 2 sons are still alive.

Since 1978, Proposition 13 in California requires an Updated Reassessment of New Property Taxes paid based upon the Los Angeles County Assessor which periodically checks values to see if they are under or overvalued. At times, every few years, a New Assessed Value of a Property can occur – Total Value vs. Building Improvement Value vs. Land Value. Any Sale or improper Transfer or Gift of single or multiple ownership shares of real estate will automatically Trigger Reassessment of Value and very likely much Higher Capital Gains Tax liability amounts for Landlords. Once Updated, 2% annual increases on yearly tax amounts paid to the county. Due to a change in percentage ownership, the Real Estate Attorney contacted the remaining owners letting them known for Estate Planning purposes, a FMV – Fair Market Value Sale Price Real Estate Evaluation / Appraisal report was immediately required as of the date of death in 2014, known as a Retrospective Date of Value (Prior date in time snapshot not for a Current Date of Value).

There is currently an approximate $5MM tax liability shelter for the remaining trustee partners for real estate holdings and assets. There were 2 other reasons for a timely appraisal: 1) The CPA needed a breakdown of land vs. building value for IRS tax reporting documentation and 2) The property was currently listed for sale, on the market. The retrospective date of value was fairly close to current date for a reasonable gauge of an achievable price to sell and what sellers could expect to gain once sold.

Real Property Appraiser Solution for Decision Making: The appraiser provided an Arm’s Length, Neutral / Third Party Commercial Real Estate Appraisal so all could know and understand an objective Fair Market Value Sale Price of the property.

Many unknowns can typically be very easily answered from a professional, Real Estate Appraisal report / Valuation or Real Estate Evaluation that is credible and supported from an experienced Appraiser or Valuation Advisor / Consultant that is knowledgeable of specific subject property location, specific use and submarket nuances affecting value.

The Commercial Real Estate Appraiser in Los Angeles has 37+ Years of extensive experience, analyzed and researched recently sold Sale Comparables with similar location and physical characteristics and provided a concluded Fair Market Value, sold at the property’s Highest and Best Uses. Above based upon an interview with a State of California licensed Real Estate Advisor, designated with an MAI - Member of the Appraisal Institute to share his extensive market insight on how he was able to successfully help clients once well informed for Internal Underwriting, Asset Monitoring and Decision Making, once armed with solid knowledge of the next step to take.

Background / Qualifications: A Real Property Appraiser Consultant, he also closely works with other specialty Appraisers: Business / Goodwill Valuation, Discounts of Corporate Partnerships and Fractional Interests. Providing Planning for Estate, Trust and Probate: Succession Gifting / Inheritance, Transfer of Shares, Death, Divorce and Partner Buy Out / Separation, Bankruptcy / Reorganization. All Real Estate Types: Retail, Industrial, Office, Medical, Multi-Family Apartments, Vacant Land and 4+ Units Income Producing Residential Property Types. Throughout 6 Counties of Southern California: Los Angeles, Ventura, Orange, Riverside, San Bernardino and San Diego.

Hypothetical Not Actual graphic for visualization purposes only.