What is a Home Appraisal?

According to MashVisor, a home appraisal “is a process in which you receive a monetary valuation of a real estate property.” Appraisals are conducted by licensed appraisers. It is important to keep in mind that appraisals are different from home inspections. Inspections look at the major features of your house, such as the structure, foundation, roof, plumbing, etc. They let you know if anything is wrong with the property. However, they do not tell you the fair market value for your home. That is what an appraisal is for! 

When Should You Get a Home Appraisal?

Home appraisals do cost money. So, it is important to make sure you go with a trust appraisal professional. Here are some of the instances in which your home will require a home appraisal: 

Before Selling Your Home

Getting an appraisal before selling your home is very important. Appraisals help determine the fair market value for your home. This is different from the selling price, which is based on supply and demand. However, the value of your home as determined by an appraiser goes a long way in shaping your asking price. Obviously, you want your home to be appraised at as high of a value as possible. This way, you can ask for more from potential sellers. To make sure your appraisal is as high as possible, there are some things you can do.

Clean: Do a deep cleaning of your home before your appraisal. The better your home looks, the more favorable your appraisal will be. You will have to do this before you show your home to potential buyers, so you might as well get a headstart on it. 

Repair Anything You Know Needs Repaired: If you know it needs to be fixed, then do it before your appraisal. Fix any leaky roofs or slap a new coat of paint on walls that could use it. The more you can make your home appealing to the eye, the better it will be for your value.

Keep Records of Repairs: If you have gone ahead and made repairs to your home, make sure you keep a record. Keep receipts for any new appliances or work that is done. This will provide proof to the appraiser that you have done everything you can to increase the value of your home.

Before You Refinance Your Home

Many people are looking to refinance their homes while mortgage rates are at a historic low. This is a perfect time to get an appraisal. Appraisals determine the value of a home. The value assessed by the appraisal is used by mortgage lenders to determine the size of your loan. Refinancing your home is not the same as changing your existing loan. In actuality, you are replacing your old loan with a new loan. An appraisal is especially important if your home has increased in value since you purchased it. If your home has increased in value according to the appraisal, you might be able to get out more money than your original loan. If you are looking to take advantage of today’s low mortgage rates and want to refinance your home, contact us! The team at People’s Choice Mortgage will help you through the whole process. I u

Before You Get a Home Equity Loan

Many people turn to home equity loans as a way to get money they need for other things. Your home is an asset and you can use the value of it without selling it. Appraisals are important because they determine the value of your home, which dictates how much equity you have. Lenders won’t just take your word on how much your home is worth. They will want that to be determined by a licensed appraiser.  

Assessing Property Taxes

Property taxes are determined by the assessed value of your home and not the appraised value of your home. Property tax assessments are not thorough walk-throughs of your home. Mostly, they are based on values in your tax jurisdiction. As is the case, assessment can differ greatly from appraisal values. Sometimes, this means that you are getting charged more in property taxes than you think is fair for your home. In these instances, you can get a home appraisal to appeal your tax rate.