WHEN DO YOU NEED AN APPRAISAL
Every year, countless people in the United States buy, sell or refinance their own slice of the American Dream. Most, if not all, of these transactions include a simple line item for an appraisal. It has become an understood and accepted part of a real estate transaction. ''Let's bring in the expert and make sure we're not spending too much on this property.''
But is this the only reason to get an appraisal? Are there other times when the services of a certified, licensed, and independent real estate professional might come in handy
PROPERTY TAX CHALLENGES
Everyone seems to have a different perspective of what a property is worth. And it's the tax assessor that seems to always come in at the high end of the scale! Challenging the tax assessment has become an annual ritual in many parts of the country. Unfortunately, most people go into these challenges unarmed. They may pull some information from the internet to support their claims, but have no real basis other than: ''It wasn't worth that much last year.''
A real estate appraiser can help in these situations. In addition to providing full appraisal services, often an appraiser can do a limited appraisal or neighborhood analysis to assist in the process. These documents can carry a lot of weight when you appear before an appeals board.
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. Very often, this additional payment is folded into the monthly mortgage payment and is quickly forgotten. This is unfortunate because PMI becomes unnecessary when the remaining balance of the loan - whether through market appreciation or principal paydown - dips below this 80% level. In fact, the United States Congress passed a law in 1998 (the Homeowners Protection Act of 1998) that requires lenders to remove the PMI payments when the loan-to-value ratio conditions have been met.
Many appraisers offer a specific service for home owners that believe they have met the 80% loan-to-value metric. Banks typically require an appraisal to be performed before removal of the PMI can be initiated. However, the cost of the appraisal is often recovered in just a few months of not having to pay the PMI.
HOME SELLER SERVICES
Before someone decides to sell a home, there are several decisions to be made. First and foremost: ''How much should it sell for?'' But first there may be other equally important questions to ask: ''Would it be better to paint the entire house first?'' ''Should I put in that third bathroom?'' ''Should I complete my kitchen remodel?'' Many things which we do to our houses have an effect on their value. Unfortunately, not all of them have an equal effect. While a kitchen remodel may improve the appeal of a home, it may not add nearly enough to the value to justify the expense.
The loss of a loved one is a difficult time in life. Sadly, these events are often complicated by difficult decisions regarding the disposition of an estate. In most cases, a home or other real property makes up a considerable share of the total estate value.
Here too, an appraiser can help. Often the first step in fairly disposing of an estate is to understand its true value. Where property is involved, the appraiser can help determine the true value. At this point, equitable arrangements can more easily be arrived at among disputing parties. Everyone walks away knowing they've received a fair deal.
Have a Question?
Do you have a question about our services, need a fee quote for an appraisal, or just have a general appraisal question? Ask it here. The more information you can provide, the better we can assist you. Your privacy is our utmost concern. Any information provided is kept strictly confidential.