If you own your home, you may not have had the property appraised in the last several years. Nevertheless, a professional appraisal can give you an up-to-date idea of how much your property is actually worth.
Many homeowners have their houses appraised periodically. Here are a few reasons to schedule an appraisal.
You Are Selling Your House
If you are planning to sell your home, before you list it, it is wise to have the property appraised. The appraisal can give you an idea of the current market value of your property.
Property values can change intermittently in an area. If your appraised value is much lower than you expect it, you may decide to delay selling your home until the values improve, especially if your home is located in a highly sought-after area due to good local public schools, well-kept properties, and low crime rates.
You Are Thinking of Refinancing
When a homeowner refinances, their previous mortgage is replaced by a new one. Nevertheless, the amount of the mortgages may differ. If your home appraises for a much higher value than the home was worth when you initially purchased it, you may be able to increase your mortgage loan amount and receive some cash in hand.
You Are Considering A Second Mortgage
Many homeowners decide to seek a second mortgage or home equity loan. The loan is based on the amount of equity available in the property.
To obtain the equity value, the lender is likely to subtract the outstanding balance of your primary mortgage from the appraised value of your home. If your home's value has increased, the amount of equity for your property has also gone up.
Using Your Home as Collateral
In addition to mortgages, your home may be used as collateral for other types of loans. The value of your home is important since it determines the collateral value that the lender may assign to it.
Typically, a tax assessment is performed on your home annually. The assessment assigns a value to your property, and this value is used to determine the amount of property tax that you owe. In some instances, the tax assessment may seem inflated or incorrect. As a result, some homeowners may choose to appeal their tax assessment.
To support a lower tax assignment, the homeowner would need an unbiased, professional appraisal.
To have your home professionally appraised, contact the office of a real estate appraiser in your local area.