REASONS TO GET AN APPRAISAL
But is this the only reason to get an appraisal? Are there other times when the services of a certified, licensed, independent real estate professional might come in handy? You bet.
PURCHASE OF A HOME
REFINANCE OR GET A HOME EQUITY LOAN
Many appraisers offer a specific service for home owners that believe they have met the 80% loan-to-value metric. For a nominal fee, the appraiser can provide you with a statement regarding the home value. Some will even take the next step and help you file a challenge with your mortgage company. The costs of these services are very often recovered in just a few months of not paying the PMI.
If the parties want to sell the home, they'll have a better idea of what price to set. And on the flipside, if a "buyout" is the chosen option, both parties will feel like they've gotten a fair assessment.
Unlike many wealthy individuals, the majority of Americans do not have dedicated estate planners or executors to handle these issues. Also, in most cases, a home or other real property makes up a disproportionate 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.
In Ohio, county auditors are required to do a full general reappraisal once in every six years. These appraisals are what is called a mass appraisal, apply to every property in the county, and take 2-3 years to complete. Conversely, a fee based appraisal is specific to one property and takes 2-3 days to complete. Most property owners never dispute the assessed value of their property and could potentially be paying higher taxes then necessary. Knowing the difference between market vs. assessed value, and the current market value of your real estate may affect what you are currently being assessed in taxes. Many times a tax assessment includes non-real estate items such as machinery, inventory, business income in excess of rental income, and various other items. Appraisal Comp Valuations has consulting services available where we take no commission if we do not save you money on your tax bill.
FACTORING INTO MAJOR FINANCIAL DECISIONS/GENERAL CURIOSITY:
A home can very well be the largest expenditure one has in their lifetime. Sometimes, wanting to know its value is simply for the sake of knowing. Other times, wanting to know its value could be a factor into many other major financial decisions: assessing lifestyle after retirement, children's college financial planning, or a changed career in a different pay scale, just to name a few. Appraisal Comp Valuations can provide this service to you!
HOME IMPROVEMENTS TO ADD VALUE
*Major Renovations: Most homeowners understand that renovations, such as to kitchens and bathrooms, and adding finished above grade living space can alter the value of their home. It is also important to upgrade your home to your personal taste and for your own enjoyment. Keeping this in mind, there is an important theory of economics that basically states this: cost does not necessarily equal value. If you are considering major renovations to your home, it could be important to know the value of the home prior to, and after potential renovations. Appraisal Comp Valuations can provide this service to you!
SELLING A HOME
Unlike a real estate agent, an appraiser has no vested interest in what amount the house sells for. It's easy for them to step in and give you the information to help you make your decision. Appraiser fees are based on efforts to complete the report and not a percentage of the sales price. So seeking a professional appraisal can often help homeowners make the best decisions on investing in their homes and setting a fair sales price.
*Prior to listing: In a typical real estate transaction, a buyer procures a mortgage to purchase the property. The buyer's lender orders an appraisal to ensure they are making a good mortgage loan; they are the appraiser's client. A seller is not a client of the appraiser, and therefore does not see the appraisal (unless the property does not appraise for the agreed upon purchase price, and who wants that?!) As a seller, pro-actively having your own appraisal provides insight to many aspects of what the "other side" of the deal will potentially be seeing. Appraisal Comp Valuations can provide this service to you!
*For Sale By Owner: Automated valuation systems can leave out important aspects to value. Similar to when listing with a brokerage, these two critical facets should not be left to chance: overpricing a listing can cause unnecessary additional days on market, or worse, the property never selling at all; underpricing a listing can cause a seller to never realize its full potential value. Appraisal Comp Valuations can provide this service to you!