Why a Home Appraisal?
There are many reasons to obtain an appraisal. The most common reason is for a real estate or mortgage transaction, yet there are other reasons you may need to order an appraisal.
- To obtain a loan
- To lower your tax burden
- To establish the replacement cost for insurance
- To contest high property taxes
- To settle an estate
- To help you make one of the largest financial decisions in your life
- To provide a negotiating tool when purchasing real estate
- To determine a reasonable price when selling real estate
- To protect your rights in a condemnation case
- To allow you to obtain a qualified appraisal report
- To satisfy a government agency requirement such as the IRS
- To use in a lawsuit
What is a Home Appraisal?
A home appraisal is an unbiased estimate of the true (or fair market) value of what a home is worth. All lenders order an appraisal during the mortgage loan process so that there is an objective way to assess the home's market value and ensure that the amount of money requested by the borrower is appropriate.
Whether Buying or Selling.
When you think about buying a house, you think about the plentiful cabinet space you hope to find in the kitchen, or ample bedroom size. You probably aren't thinking about the home appraisal.
If you're selling a home, you're probably daydreaming about the home you plan on moving into next. You're probably wondering how much you can sell your home for, too. You'll need an Appraisal to do either.
Why is a Home Appraisal Important?
The worth, or value of the property, will determine how much a lender is willing to give you to buy that particular piece of real estate. This all-important step in getting the financing you need is the home appraisal -- an oftentimes-confusing part of the mortgage process in which both buyer and seller must depend on the expert opinion of a stranger. A real estate appraisal is simply that -- the expert opinion of a certified, state-licensed professional who determines the value of a piece of property.