Frequently Asked Questions

All Star Appraisals, Inc. – a Real Estate Appraisal Company is prepared to address any concerns you might have about valuations in Los Angeles County and surrounding communities.

An appraisal is a professional appraiser’s estimate / opinion of value. The appraisal is usually in a written format stating the appraiser’s findings. Most often, it is a longer document called an appraisal report. To develop such a report, the appraiser must conduct a thorough study of the subject property, it’s geographical area and economic trends. An appraisal takes into account many factors influencing a property’s value; therefore, an experienced appraiser can make an important contribution to any real estate transactions.

An appraiser generates an objective and well substantiated opinion of market value in support of real estate transactions. Appraisers illustrate their investigation in appraisal reports.

The appraiser is not a home inspector and does not do a full home inspection. The point of a home inspection is to investigate the structure of the home from bottom to rooftop. Usually, a home inspection report will evaluate the amenities and the necessities of the home: air conditioning (weather permitting), electrical functions, the condition of the heating system, the plumbing; then the structural integrity of the home such as the attic, accessible insulation, walls, floors, ceilings, windows, then the foundation, basement and visible structures.

Simply, they have nothing in common. A comparative market analysis (CMA) and other online estimates will provide a non-specific figure generated by computers / algorithms / artificial intelligence. Appraisals are performed by a state licensed or certified professional who physically visits the property for a full observation and measurement obtainment. An appraisal delivers a defensible and carefully documented opinion of value. The credentials of the person creating the report is frankly the most significant difference between an appraisal, CMA and other online estimates. A certified, California licensed professional who has formed a career on valuating real estate in and around Los Angeles County develops the appraisal. Further, the appraiser is an unbiased voice, with no vested interest in the value of the home. One of the appraiser’s core scope for an assignment is actually visiting a property and embracing the entirety just as market participants would. At All Star Appraisals, Inc., we’ve personally observed thousands of properties over two decades. Development of credible and supported results can primarily be made possible with the clear understanding of a property’s key aspects. It’s real people who purchase real estate thus the importance of a real estate appraiser valuating a tangible asset class has never been more important.

In the documentation of an appraisal, each appraiser must ensure the following:

The appraisal contained a suitable analysis of the data.
Whether individually or collectively, there were no grave errors contained in the appraisal, nor any relevant details left out.
That appraisal services were delivered in a careful and conscientious manner.
That a trustworthy, substantiated appraisal report was imparted.

To become a state licensed appraiser, we must satisfy considerable education and experience requirements that give us the background to formulate an unbiased opinion. In addition, appraisers must obey a strict industry code of ethics and comply with national standards of practice for real estate appraisal. The guidelines for working up an appraisal and communicating its results are insured by enforcement of the Uniform Standards of Professional Appraisal Practice (USPAP). Licensing and certification is achieved through coursework, tests and experience working under a supervisor. Once an appraiser is licensed, he/she is required to engage in continuing education courses in order to keep the license current.

Wealth Management Firms.
Financial Advisors.
Trust & Estate Planning Attorneys.
Family Offices.
Executors.
Certified Public Accountants.
Banks.
Credit Unions.
Private Investors.
Lenders.
Realtors.
Veterans Affairs.
Federal Housing Association.
Defense Companies.
Consumers.
Insurance Companies.

Compiling information is one of the primary functions of an appraiser. Data can be described as either Specific or General. Specific data is collected from the home itself; Location, condition, amenities, size and other specific data are gathered by the appraiser during an inspection.

General data is gathered from a variety of sources. To research recent sales to be used as “comps”, an appraiser will typically go to the local Multiple Listing Service. Tax records and other public documents reveal actual sales prices in a market. Appraisers routinely need to report when a property lies in a flood zone, so that information is retrieved from a FEMA data outlet such as a la mode’s InterFlood product.

And last but not least, the appraiser gathers general data from his or her past experience in doing assignments for other properties in the same market.

If you’re making any kind of financial decision and the value of your home is relevant, you’ll want a full appraisal. If you’re selling your home, an appraisal assists you in setting the most appropriate price. If you’re buying, it makes sure you don’t overpay. If you’re engaged in an estate settlement or divorce, it ensures that property is divided fairly. A home is often the single, largest financial asset anybody owns. Make informed decisions with a professional appraisal.

PMI is short for Private Mortgage Insurance. It covers the lender in case a borrower doesn’t pay on the loan and the value of the house is lower than what is owed on the loan. Once you reach the point where your home’s equity plus the amount you’ve paid is at least 20% of your loan balance, you can have your PMI dropped.

The first step in most appraisals is the home inspection. What this entails is the appraiser, after setting up an appointment, personally going through the home – recording the layout of the dwelling, taking photos and documenting the general status of its amenities. Is there anything you can do to help? Yes there is! First, be sure we have easy access to the exterior of the house (gates aren’t locked, etc). Trim any bushes and relocate any items that would make it difficult to measure the structure. Indoors, make sure the appraiser can get to appliances like furnaces and water heaters.

To help speed things along as well as ensure a more accurate report, try if possible to have the following items:

Any documents, such as a title policy with information on encroachments or easements.
Any “Homeowners Associations” agreements or, if applicable, condo covenants or fees .
Locate copies of the current listing agreement, broker’s data sheet and, if the sale is “pending”, the purchase agreement.
A list of “proposed” improvements if the property is to be appraised “as complete”.
Itemized list of recent upgrades.
Photo copies of permits / addition records / property history.

In real estate appraising, Market Value is commonly defined as; “The most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: the buyer and seller are typically motivated; both parties are well informed or well advised, and acting in what they consider their best interests; a reasonable time is allowed for exposure in the open market; payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.”

In most real estate transactions, the appraisal is ordered by the lender. While the buyer pays for the report as part of the closing costs, the lender retains the right to use the report or any information contained within. The buyer is certainly entitled to a copy of the report – it’s usually bundled with all the other closing documents – but is not allowed to use the report for any other purpose without permission from the lender.

It’s different when it’s the homeowner hiring the appraiser for things outside securing a mortgage. In these situations, the appraiser may define how the appraisal can be used; for PMI removal, or estate planning or tax challenges, for example. If not noted otherwise, the home owner can use the appraisal for any purpose.

Estate tax liability. Disposition of assets under a will or in probate. There are many situations – none of them lacking stress and complexity – where you might need an appraisal of property that states an opinion of what the property was worth on a date some time ago, rather than when the appraisal is ordered. For estate tax purposes or disposition of the assets of a decedent, a “date of death” valuation is often required. (Sometimes, the executor of the estate may choose to have the date be six months after the “date of death” thus the same principles apply.)

Attorneys, accountants, executors and others rely on All Star Appraisals, Inc. for “date of death” valuations because such appraisals require special expertise and training. They require a firm that’s been in the area for some time and can effectively research comparable contemporaneous sales.

Real property isn’t like publicly traded stock or other items which don’t fluctuate in value very much or for which historical public data is available. You need a professional real estate appraiser, bound by the Uniform Standards of Professional Appraisal Practice (USPAP) for a high degree of confidentiality and professionalism, and you need the kind of quality report and work product taxing authorities and courts need and expect.

Divorce settlements involve many decisions, including who gets the house. There are generally two options when it comes to real estate – it can be sold and the proceeds divided up, or one party can “buy out” the other. In either case, one or both parties would be wise to order an appraisal of the shared real estate.

When the intended use of an appraisal is the division of assets, it requires a well-supported, professional report that can be supported during a trial. All Star Appraisals, Inc. pledges to give you an exceptional level of service with professional courtesy and top notch analysis. We understand how to handle the delicate needs of a divorce situation.

Attorneys as well as accountants in California depend on our opinions when determining real property values for estates, divorces, or other disputes depending on a value opinion. We have a lot of expertise dealing with all the parties involved and are standing by to assist your needs. We assemble appraisal reports that fulfill the requirements of the courts and various agencies.

As a lawyer representing a client in a divorce, your case’s research often requires an appraisal to ascertain market value for the residential real estate involved. A great deal of the time the divorce date may not be the same as the date you requested the appraisal. We’re experienced with the processes and all that it takes to perform a retrospective appraisal that has an effective date and Market Value conclusion that matches the date of divorce. For each divorce appraisal we are hired to do, we remain cognizant of the fact that they need to be handled delicately. The ethics provision within the Uniform Standards of Professional Appraisal Practice (USPAP) compels us to keep the highest degree of confidentiality, ensuring the utmost discretion.

The appraisers scope of work would involve looking back on past events, dates or situations.

The appraisers scope of work would entail reviewing plans and specifications, expecting the subject property to mirror the given description in the future. Common industry terms are “ARV” (after repair value) appraisal or “subject-to” appraisal.

The client or any other party as identified by name or type. Users of the appraisal or appraisal review report prepared by the appraiser on the basis of communication with the client at time of the assignment.

Appraisal price for assignments completed by our firm typically range between $850-$5,500. Appraisal reports prepared by our company are generally between 30-80 important pages with even the tiniest phrase carrying significant weight. The period of time attending the appointment for observation and measurement attainment is only a minute part of the project. Significant amount of work goes on that the client doesn’t see. Fully absorbed hours upon hours are required for even the most standard project which generally begins after the appointment. Each appraisal assignment requires specific scope of work for preparation. With the successful completion of 3,500+ appraisals worth 4+ billion in aggregate property values over the past 20 years, we strongly believe that creating meaningful reports take time and quality should never be compromised. As of this recording in 2024, we’re honored to hold a undisputed record with the California Bureau of Real Estate Appraisers (Licensing Board), our liability company, reputable banks, Veterans Affairs, FHA, and the government sponsored entities such as Fannie Mae & Freddie Mac.

The price of an appraisal at our company varies depending on; professional hours required to produce credible assignment results, size of the property, atypical characteristics, views, hillside, ocean or water front, stigmatized properties, detrimental conditions, number of units and amenities on site, intended use / purpose for the appraisal, intended users involved, zoning and other complexities.

Property address.
Client’s full name & contact info.
Intended use / reason / specific purpose for the appraisal.
Full names and types of any other intended user of the appraisal report.
Effective date for the appraisal if other than “current fair market value.”
Is there any construction taking place at the property? If yes, disclose the extent to the appraisal company.
Are there any notable property defects in excess of typical deferred maintenance? If yes, disclose the extent to the appraisal company.
Are there any guest houses, ADUs, additional units or living quarters on site? If yes, disclose the amenities on site to the appraisal company.
Has there been recent deaths on site? If yes, provide details.
Has there been any unusual occurrences which took place at the property within recent years? If yes, disclose the happening to the appraisal company.
Provide any concerning factors a seller / owner / Realtor / Attorney would disclose about the property to a potential buyer.
After appraiser / client interview, All Star Appraisals, Inc. will prepare a written proposal for the assignment.

Contact Department of Consumer Affairs – Bureau of Real Estate Appraisers by phone 916-552-9000, email: info@brea.ca.gov or www.brea.ca.gov.