Home appraisals stand of utmost importance before buying or selling a house. It serves to be an independent and unbiased assessment to know the exact worth of property at a particular time. There are licensed or certified professionals (as provided by Belle Property) who conduct such an appraisal based on the value of other homes in the neighborhood and by analyzing the current condition of your home as well.
Accurate appraisals become an absolute necessity when banks don’t agree to lend you money i.e when the home appraisals value turns out to be less than the loan amount. However, that is not the only time when you need such analysis. We have come up with more instances when such evaluations can help you a great deal.
Here are some of the most important occasions when you would need home appraisals.
1. To Determine A Realistic Asking Price
A lot of homeowners set up an asking price without considering the realistic value of their homes in the market. This doesn’t only let them overvalue their property but in a lot of cases, such homes also remain unsold for a longer period. To combat such a situation, doing a pre-listing appraisal can help owners get a better understanding of the market and the actual value of their homes. All of which helps in setting up an asking price that makes the deal more appealing.
2. To Refinance Your Home For home appraisals
When you decide to refinance your home, you replace your old mortgage with a new one because the value of the home changes as compared to when you first bought it. For a similar reason, lenders set the obligation of home appraisal to make sure that the new mortgage amount is adjusted as per the value of the house today.
If the value of your home has increased since it was first purchased, chances are that you will get cash out as part of refinancing. With that being said, if it has declined, you may even face difficulty applying for a new loan.
3. To Getting Home Equity Loan
Home equity loans are another type of loan that comes on top of the existing mortgage and the amount you borrow in this case largely depends on the amount of equity you have when the remaining value of the mortgage is subtracted from the current value of the house.
If unfortunately, the value of a home has decreased, you might not even stand eligible for a home equity loan.
4. To Apply For More Loans
Continuing with the streak of loans, at some point in time you might have to go for cash and business loans and then the value of your home acts as a source of collateral. Just like home equity loans, the banks would want to ensure that the money it is about to lend must be supported by the current value of your property.
5. To Appeal Tax Assessments For Home Appraisals
As many of you would know, in a lot of states the property taxes calculated are based on the fair market value of your home. So, if the value of your home listed on your property tax bill appears to be too high, but the housing prices in your neighborhood or city have dropped down, then you would want to appeal the assessment.
In the case of appeals, independent home appraisals can contribute a great deal to strengthen your case and as a result, you would also pay low annual property tax.
Now that you know the advantages of home appraisals, get one from Belle Property in Glen Iris today!