Present Value LLC » appraisal

Present Value LLC’s Top Five Posts on the International Financial Reporting Standards (IFRS)

admin — Tue, 10 Jan 2012 13:21:45 +0000

International Financial Reporting Standards (IFRS) is a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS is issued by the International Accounting Standards Board. Conversations are still swirling over whether or not the Securities and Exchange Commission (SEC) will adopt IFRS or some variation of the standards, requiring U.S. companies to begin using the international reporting standards rather than the current Generally Accepted Accounting Principles (GAAP). We pulled together some of the most useful posts regarding the debate over IFRS.

Companies Will Need Time to Adopt International Financial Reporting Standards (IFRS)

SEC Releases Second Staff Paper on a Possible Incorporation of IFRS into U.S. GAAP: An Analysis of IFRS in Practice

IFRS Loopholes

More Delays on SEC’s Decision on Whether to Adopt IFRS

GAAP and IFRS

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

Don’t Wait to Refinance!

admin — Thu, 05 Jan 2012 13:58:22 +0000

Many people took advantage of last year’s low interest rates and refinancedtheir homes. If you didn’t do it last year, the Federal Reserve promised to keep rates low this year, so there’s still time. However, according to a quote in The New York Times from Frank Nothaft, chief economist at Freddie Mac, interest rates might start to go up a little in the spring.

If you’re planning on refinancing this year, take action now. Begin to gather all of your documents, like pay stubs and W-2s, and check your credit report. And find an appraiser qualified to determine the value of your home. The appraiser you work with should be familiar with your area and know the rules from the Home Valuation Code of Conduct intimately. An appraisal that comes in too high or lower than you expected can derail your refinancing plans, so be sure that your appraisal is as accurate as possible. If you’re planning on refinancing in 2012, contact us today!

By: Present Value

Additional Reading

Is Refinancing for You?

Refinancing Options for Underwater Homeowners

More Delays on SEC’s Decision on Whether to Adopt IFRS

admin — Thu, 22 Dec 2011 19:08:40 +0000

Those waiting for a decision by the Securities and Exchange Commission (SEC) on whether to adopt the International Financial Reporting Standards (IFRS) will have to wait at least a few more months. According to SEC Chief Accountant James Kroeker at an AICPA National Conference, the SEC will need at least a few more months to produce a final report that will enable the organization to make a determination on the adoption of IFRS.

Kroeker attributed the delays to mixed results on a number of convergence projects between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), including convergence on guidance on fair value, revenue recognition, leasing, financial instruments, and insurance for financial reporting purposes.

By: Present Value

Additional Reading

IFRS Loopholes

SEC Releases Second Staff Paper on a Possible Incorporation of IFRS into U.S. GAAP: An Analysis of IFRS in Practice

17 Reasons Why You or Your Clients May Need a Certified Machinery and Equipment Appraisal

Triggering an Investigation Before Securing a Loan

admin — Thu, 03 Nov 2011 22:36:54 +0000

Lenders have increased their methods to prevent loan fraud in recent years. When you first apply for a mortgage or refinancing loan, the investigation begins with verification of your identity and social security number. Lenders also check to see if your name appears on a terrorist watch list, verify your employment, and check your credit report. This type of investigation for a mortgage or refinance loan is standard, but a deeper investigation can be triggered if you show certain risk factors. The things that can trigger a larger investigation include:

A large bank deposit – the source of the deposit must be confirmed
An address more than a normal commute from your place of business – this could indicate that you don’t plan to live in the house
Choosing to purchase a home that isn’t appropriate for your family (e.g., a one-bedroom home for a family with multiple children) – this could indicate an intention to flip the house
New debt – this could push your debt beyond acceptable limits
Claims of an income that far exceeds the standard – this could indicate a falsely inflated income

To prevent any delays in having your mortgage or refinancing loan go through, try to avoid these triggers or have documentation available if they’re unavoidable. For example, if a large bank deposit is because of gifts from your recent wedding, have your marriage license on hand.

By: Present Value

Is Refinancing for You?

admin — Tue, 25 Oct 2011 01:23:16 +0000

With interest rates at extreme lows, many people are rushing to refinance. In fact, 79% of mortgage applications this year have been for refinancings. But before you refinance, it’s a good idea to take the time to decide if it’s the best decision for you.

First of all, think about your long-term plans for your home. Refinancing is only a good idea if you plan on staying in the house long enough to recoup the closing costs. You should also consider the difference between your current interest rate and your interest rate after refinancing. Some experts say that if the difference is a quarter of a point or less, skip the refinancing. Other experts say that you shouldn’t refinance if the difference is one point. When you refinance, look at all of your financial goals. Are you trying to save for college or retirement? Consider how the savings from your refinancing can help you achieve those goals.

Before making the decision to refinance, make sure that your job is secure. If you’re afraid of being out of work within the year, it would be better to keep savings rather than put them toward refinancing fees. Also, be sure you know how much you’ll save and get a locked-in interest rate. Finally, make sure to have an appraisal performed by an experienced, certified appraiser

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

Problems that will Keep you from Getting a Mortgage

admin — Thu, 13 Oct 2011 11:46:33 +0000

The Mortgage Bankers Association estimates that of the people who go through the lengthy and complicated process of obtaining a mortgage or refinancing, 30% will be rejected. Lenders’ policies have tightened up as a result of the financial crisis, and many banks have policies that go beyond federal requirements. According to industry experts, there are six main triggers that can keep you from getting a mortgage or refinancing.

Not enough income to pay the mortgage – some banks require two years of high income, which hurts recent job changers
Debt payments that are more than 45 percent of your gross income
A FICO score below 620 – some require one of at least 660
An appraisal that comes back lower than the value of the mortgage
A major safety issue or necessary repair in the house
Incomplete paperwork – this accounts for about 12% of denied applications

If you want to refinance to take advantage of today’s extremely low mortgage rates or are planning on purchasing a house in the near future, keep these things in mind to help the process go smoothly.

By: Present Value

Additional Reading

Refinancing Options for Underwater Homeowners

FHA Loans

Getting a Good Appraisal

admin — Tue, 04 Oct 2011 19:02:15 +0000

There’s an article in The New York Times this week titled “Determining a Home’s Value” about making sure your home is appraised well if you decide to take advantage of record-low mortgage rates by refinancing.

The article suggests that you find an appraiser from your area, or make sure that your lender does so. If your appraiser is unfamiliar with your area, which can sometimes happen if you work with a nationwide lender, your appraisal might come back lower than is accurate.

Just before the appraisal happens, do some minor repairs, like fixing a broken window or touching up paint, to make sure that the home looks well maintained. Hiring someone to clean your home is also a good idea.

Ask your appraiser to tell you which properties he or she is using as comparables. Distressed properties or foreclosures should be excluded because they can falsely drag the value of your property down.

Once the appraisal is complete, ask for a copy to make sure that it’s fair. It should accurately reflect your neighborhood and your home’s value. If you feel the appraisal is unfair, ask for another one.

By: Present Value

Additional Reading

Refinancing Options for Underwater Homeowners

Finding a Local Bank for Your Business Loan

admin — Tue, 27 Sep 2011 02:48:53 +0000

A recent article on Entrepreneur.com, “How to Find the Best Local Lender for Your Business,” provides tips for business owners who may be looking to get a loan from their local community bank.

Look for SBA-backed banks.
Check the Federal Deposit Insurance Corporation (FDIC) troubled-bank watch list.
Make sure the management team is stable.
Seek out a bank that may have a niche in your business area.

The article also reminds business owners that it’s extremely important to present well when approaching any bank for a loan to improve your ability to negotiate. It recommends taking the time prepare your loan package and financial statements. This can include having a business valuation in hand and/or an appraisal of your assets for collateral.

By: Present Value

Additional Reading:

Business Loan in Default? Your Best Bet May Be an SBA Loan Workout

Lenders Turn to Present Value LLC for Pre-Loan Due Diligence

Looking for Funding for Your Startup? Know the Value of Your Business

Risks of Co-Signing for a Mortgage

admin — Fri, 12 Aug 2011 01:38:58 +0000

With lenders tightening their lending requirements, it has become harder for potential home buyers to secure a mortgage. Occasionally, these potential home buyers turn to a close friend or family member to co-sign the loan, but co-signing for the primary mortgage holder comes with a lot of risks.

Co-signers have to be able and willing to make mortgage payments before agreeing to the arrangement because if the main mortgage holder stops making payments, responsibility falls to the co-signer. Co-signers should also keep in mind that if the principal mortgage holder is late on several payments, it can show up on the co-signer’s credit report. It would be a good idea to agree that the co-signer is copied on the principal mortgage holder’s online payments to eliminate that worry.

Something to consider instead of co-signing is giving a cash gift to help a close friend or family member make a down payment on a home. After the one-time transaction is complete, neither party has any responsibility toward the other. The traditional down payment on a home is 30% of the purchase price.

An important part of a home sale or purchase is an appraisal. The appraisal is important for the bank, which doesn’t want to loan more than the home is worth, and the buyer, who wants to avoid paying more than the value of the home. Make sure to turn to a reputable company that can perform an accurate and substantiated appraisal.

By: Present Value

Additional Reading

New Limits to Mortgage Loans Coming in October

Lenders Turn to Present Value LLC for Pre-Loan Due Diligence

Celebrity Houses That Are on Sale

admin — Thu, 30 Jun 2011 11:45:33 +0000

Have you ever dreamed of truly living like a celebrity by buying one of their homes? If so, you’re in luck. Two famous names recently put their homes up for sale – Regis Philbin and Hulk Hogan. Regis Philbin’s four bedroom, eight bathroom, Greenwich, Connecticut, home is complete with a tennis court and a pool where you can spend all of your free time. Proving that no one was immune to the housing crisis, he put the house on the market in 2008 for $5.9 million, but took it back off the market when it wasn’t selling. He’s now asking just $3.8 million for it, which may be less than the true value of the home.

Hulk Hogan had a similar issue. His Tampa, Florida, five bedroom, 11 bathroom home with its own tanning room was put on the market in 2006 for $25 million, but it didn’t sell. Last summer, it was put back on the market for $10.9 million, and this summer he reduced the price again to $9.2 million. Even for those in the upper echelons of society, home values just aren’t what they used to be.

If you do decide to take over once Joy and Regis leave their home, or want to live in The Hulkster’s mansion, don’t get so star struck or so excited about the idea of your own tanning room that you forget to get an unbiased, third-party opinion on the value of the home.

By: Present Value

Additional reading:

Tavern on the Green Auction