On May 1-2, 2010, the Nashville-Middle Tennessee area experienced over 13 inches of rainfall in two days that resulted in substantial flooding and mud slides throughout the area. Many home owners, who suffered damage to their homes, may qualify for a casulty loss claim as a deduction on their 2009 or 2010 income tax returns.  We are not tax consultants and therefore strongly recommend that affected homes owners contact their own professional tax consultants to see what steps they should take in order to qualify for this deduction.  One of the items that may be needed is a professional property appraisal indicating the fair market value of the property both before the casualty and after.  In the event that you need to substantiate your loss with a professional appraisal, our company is equipped with a competent staff to provide you with this service at a reasonable price and within a reasonable time frame.   Whether you choose to use our services or another company, the following guidelines should be observed for a competent appraisal analysis of your property.

The value opinion should be based on all of the following considerations:

1. The unimpaired value of the subject property based on the sales comparison approach to value as of a date prior to May 1, 2010 to obtain the "before" value opinion.  This value is used as a base price or the "before-damage" opinion before any potential loss is applied.

2. The cost to repair the property in order to restore it to average, marketable condition or to a condition that insures the safety of the property and occupants. These costs should be provided to the home owner by professional and licensed contractors and engineers and made available to the appraiser for analysis.  In the appraisal report, these costs are calculated on a dollar-for-dollar loss to the base value of the property attributable to costs-to-cure.

3. Any loss in value that may be attributable to a measurable loss of use, temporary or permanent (also known as loss of utility).