When is the best time to get an appraisal? What is an appraisal used for? I’m buying a house, do I still need an appraisal? These are great questions and ones you should have answers to before embarking on a home appraisal.
What is a home appraisal?
An appraisal determines how much your home, or the property you are looking to buy, is worth. It is the value of your property, including land and any renovations that may or may not improve the value.
Why Sellers Need an Appraisal
Property owners use an appraisal to help value their home so that they know what to list their property for or in cases of property tax appeals. While a homeowner may expect their home to be valued higher because of all the hard work and care they have put into their property over the years, an appraiser will consider items that impact the actual value. In some cases, home improvements do not impact the value assessed by the appraiser. Your broker will then obtain comps of the area (or data), compare them to the appraiser’s report, and will be better equipped to list the property for sale.
Why Buyers Need an Appraisal
An appraisal will assist a buyer in evaluating the current condition of a property they are interested in purchasing and setting a price tag to it. Instead of basing the purchase decision on what has been listed, a buyer will use a pre-appraisal to make sure the property is in line with the true market value. This helps to ensure they are not overpaying for the property.
Other Ways Appraisal Reports Are Used
Buyers, sellers and agents aren’t the only ones in need of appraisals. Lenders also use an appraisal to assist them in making the decision to lend money. Appraisals are also utilized to appeal property taxes. Should the need arise to dispute property taxes with the county; an appraisal is useful and often required.
Find a Qualified Real Estate Appraiser
Professional real estate appraisers provide you with peace of mind whether you are a buyer or seller. You can rest assured that an appraiser works as a third-party representative with no interest in the transaction. This keeps everyone honest so to speak. If you are needing to find a qualified and professional appraiser, give us a call. We have great resources to get you what you are looking for.