Reasons to Get an Appraisal
Property appraisals are necessary for many different reasons, beyond securing a loan for a property you are buying. Determining a realistic value of the property for the loan company to finance it confidently is important, but this isn’t the only reason you might want to have a professional evaluation of the value of your home.
● Estate Planning: Having an appraisal done can assist the estate attorney in creating a plan to maximize tax benefits and determine the worth of the property for inheritance purposes.
● Divorce: An appraisal of property owned by one or both divorcing partners will need to be done as a part of a divorce property settlement.
● Refinancing: Many lenders require a reassessment of your property’s value before approving a refinance.
● Home Equity: A lender will want an appraisal done when you seek a home equity loan to protect themselves by ensuring they are not lending you more than the property is worth.
● PMI Removal: In order to remove PMI, you need to show that you have at least 20% equity in your home. This can either be done by paying down the loan, or getting an appraisal to show the current value of the property.
● Personal Evaluation for Determining Net Worth: Part of establishing an accurate picture of your net worth includes determining your property’s value vs what you owe via an appraisal.
● Insurance Re-valuation: If you feel your property value has increased (or decreased) significantly, it is important to have an appraisal to ensure you are insured for the right amount.