An appraisal is often done to determine the market estimate of a particular property. It can also be done in order to determine the worth of the property for selling or buying purposes, estate or legal purposes, tax, financing purposes, and other purposes. Appraisal can be carried out by a professional property appraisal service such as IMMEXPERTS, formal or informal appraisals by a real estate agent.
If you are refinancing or buying a property, some mortgage or lenders guarantors will need the service of a high-quality appraiser. An appraisal shouldn’t be confused with home inspection. Home inspection gives an outline of most aspect of the property utilities, structures, sidewalks, and grounds and what needs to be repaired are outlined as well. However, home inspection does not provide an estimate of a property monetary value as an appraisal does.
Below are some reasons as to why you need an appraisal service in your home:
The lending party will require an appraisal to be carried out on the property in case you want to refinance your home. With regards to initial lending loans, the aim here is to ensure that the value of whatever collateral the property offers justifies the amount of refinanced loan you are asking for.
#2: Selling your home
Whenever you are planning on selling your home, a good appraisal of the property value is a relevant step in coming up with a listing price. This can, however, be one of the services your real estate provider offers. But we are also asked to complete pre-listing appraisals. Especially in a situation where the property has some special attributes.
#3: Estate & Legal Purposes
The transfer of funds in the form of an estate from one family member to another or from generation to another normally requires a valuation of the property market value as at a particular date such as; date of transfer, date of death. A division of assets for partnership dissolution or marital separation will as well require a valuation as at the transfer date.
#4: Renovation loans/Home equity loans
It is a perfect idea to have the property appraised if you are attempting to get home equity or renovation loan, especially if the values of property in your area have increased. The current value of the property is what determines your home equity and against which you will want to borrow money.
When borrowing funds for renovation purposes, the lender normally will want to know that the intended renovation will have a good or positive impact on the value of the property.