When To Appraise
Many people are unsure when to involve a professional appraiser. Most real estate transactions require an appraisal. It is almost always a requirement when seeking a loan or home refinancing. The appraisal leads to a better understanding of the property being appraised.
Consider an appraisal with:
PMI Removal
Private Mortgage Insurance or PMI is the supplemental insurance that many lenders ask home buyers to purchase when the amount being loaned is more than 80% of the value of the home. It is important to know that the PMI becomes unnecessary when the remaining balance of the loan dips below this 80% level. Removing the PMI insurance will save you money but most lenders require concrete appraisal evidence that the threshold has been met. In many cases, the costs of the appraisal service can be recovered in a matter of months by removing the cost of the PMI.
Pre-Sale Decisions
A good appraisal is crucial in the homeowner’s decision of an asking price. Most Realtors will provide a free pricing service based on sales data but a professional pre-appraisal is still beneficial during times of erratic changes in the market, and when zoning and subdividing excess land. Unlike the realtor, an appraiser has no vested interest in the selling price of the property nor will the appraiser earn a percentage of the sales price.
Cost/Benefit Analysis
A recent property valuation is an important consideration when considering any remodeling or supplemental improvements such as a swimming pool or additions. Not all projects will increase the value of your property enough to justify the expense.
Property Tax Challenges
Challenging a tax assessment is often justified, but it is unwise to go into the challenge unarmed. A real estate appraisal will offer the tax officials concrete evidence
Estate Planning
The loss of a loved one is difficult and often accompanied by complicated decisions regarding the disposition of an estate. A home or other real property makes up a sizable share of the total estate value. In many cases, a property value needs to be established within a predefined time. The valuation of the home and understanding the actual market value is important in making any decision to sell the property.