Year-end 2018 marked a market normalization after years of rapid appreciation, with rising interest rates cooling buyer demand. Heading into 2019, I see a more balanced market where pricing accuracy matters more than ever for both buyers and sellers.
Year-End Decision Points
Charitable Donations: If gifting property to charity, appraisal must be completed by Dec 31 for 2018 deduction.
Refinancing: Any refi closed by Dec 31 locks in 2018 rates. Closing in January means 2019 rates.
Equity Access: HELOC established in 2018 might have grandfathered rules vs 2019.
Tax Planning: Capital gains, depreciation, basis step-up—all hinge on Dec 31 valuations.
Appraisal Timeline for Year-End
To close by Dec 31:
- By Dec 5: Schedule appraisal (rush options available)
- Dec 5-15: Appraisal completed
- Dec 15-22: Loan approval and docs
- By Dec 28: Closing possible
Missing Dec 5 scheduling deadline means waiting until 2019.
Tax Deduction Planning
If you're donating property this year:
- Appraisal cost is tax-deductible (as part of donation)
- Value documentation matters (IRS scrutinizes high values)
- Professional appraisal is required (not Zillow estimate)
Charitable appraisals need special attention to defensibility.
Refinancing Before Year-End
Rate environment in December: 4.5-4.8%. Acceptable but not exceptional.
If you're considering refi, assess:
- Current mortgage balance
- Home appraisal value
- Equity position
- New loan terms
- Closing costs
Year-end is fine timing but not necessarily optimal.
1031 Exchange Timing
If you sold investment property and doing a 1031 exchange, year-end timing is critical. Property must be identified by Dec 31 and closed by Jan 31.
Appraisals for exchange property are time-sensitive.
Estate Planning
If planning estate distributions, Dec valuations lock in basis for heirs. Step-up basis is calculated from date-of-death value.
Getting Dec appraisal establishes baseline for future reference.
Home Equity Analysis
Want to know your equity for financial planning? An appraisal provides accurate home value, and you calculate:
Equity = Appraised Value - Mortgage Balance
Bottom Line
Year-end appraisals matter. If you need valuation for tax, legal, or financial purposes, schedule immediately.
Don't wait. December fills fast.
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Year-end appraisal planning? Contact me immediately to schedule. (714) 378-5390.