6 Additional Reasons that a Home Appraisal Would be a Great Benefit for You


 

Home appraisals are a necessary aspect of purchasing a home. It is important to know its value so that you pay the best price for your new home. This is the traditional understanding for acquiring a home appraisal. Yet aside from home buying, knowing the value of your home can help you tremendously for other reasons. In this article, we will discuss 6 additional reasons that an appraisal may be a great idea for your home.

Refinancing or Applying for an Equity Loan

There are times when we need a large sum of money to pay college tuition or to consolidate multiple loans. If you are considering applying for a home equity loan or refinancing to handle financial matters, it is necessary to have the home appraised. A home appraisal may also be needed when applying for home insurance. The value of the home must be known before monies can be dispensed to compensate for it.

Tax Reassessment

In many states, the taxes paid on the home is based off the value of the house. Decreasing property value will be reflected in a home appraisal. Determining the lower value can save you money on your annual property tax payment.

Home Improvement

Renovation projects on your home can become quite costly. And while you may enjoy the improvements while living in the home, these high costs may not reflect in the selling price when it is time to sell. If you are planning home improvement ventures to increase the value of your home prior to selling it, you may want to consider having an appraisal. The appraisal will give you an idea of how much you want to put into the renovation cost so that you get this back in the selling price.

Divorce Settlement

A divorce can be a stressful time. Property may be sold and divided so that both parties in the divorce are fairly compensated. While the court may not mandate that one of the parties is bought out of the home, many times the home is required to be sold if an agreement cannot be made as to who gets to inhabit it. In either case, it is wise to get the home appraised so that both parties know the value. This ensures that each gets what is deserved in the final settlement.

Liquidation of an Estate

In the case of a deceased loved one, the estate may need to be liquidated to satisfy the desires of inheritors. In this case, the executor of the estate should be sure to have the home appraised to establish its fair value. A home appraisal may lessen or undermine disputes that can arise from questions of property value. From the home appraisal, an equitable selling amount can be agreed upon and parceled out to those left to grieve for their beloved family member.

Selling your Home

At the time of setting a listing price to sell a home, a home appraisal would be a great idea to get the proper value for your home. Your real estate agent determines the listing price based on comparables, based on the recent (within a year or two) selling prices of the neighboring homes in your area. There may be aspects of your individual home that can add or reduce value from these comparable neighborhood prices. Using this, you can ensure that you are not underpaid for your home and all factors of its value are taken into consideration.

 

A home appraisal is a beneficial tool that can be used in many ways aside from buying your home. As shown, it can be useful and advantageous in many other cases where an impartial value decision on the home needs to be made. A home appraisal may be just what is needed in your particular situation!

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