Many homeowners think that a house appraisal is only necessary when buying or selling a property. What they don’t realize is that an accurate valuation report from a licensed professional can be useful in other ways. Knowing how much your home is worth can give you leverage and money that you can use in the future. Here are a few of these situations.
Why You Should Get a House Appraisal
1. New Loan Application
If you plan to avail yourself of new loans and use your home as collateral, a recent house appraisal is needed to justify the amount to be borrowed. Getting a home equity loan also follows the same requirement, but the amount depends on the current market value—minus your remaining mortgage.
2. Tax Reassessment
Real estate taxes in several states are often based on the property’s fair market value. If you think that property prices within your neighborhood have dropped, you can appeal for reassessment and reduce your annual taxes by providing an updated real estate appraisal.
When you opt for refinancing, your existing mortgage will be replaced with a new one to fairly account for adjustments. With a higher home value, you may be able to gain extra cash from the transaction. Similarly, an appraisal can be used for possible modifications on your current loan, such as longer terms or lower rates.
4. Estate Planning
By knowing your estate’s worth, you can prepare and organize wills and inheritances to avoid bitter feuds following an untimely demise. Understanding the estate’s value and dividing it among your named beneficiaries are crucial in preventing long, drawn-out court proceedings.
5. Adverse Events
As certified appraisers are impartial, their services are often called for in settling valuation disputes in court proceedings of unfortunate events, like bankruptcy and divorce. A court needs an objective, third-party assessment to determine a property’s market value when dividing the assets.
Ensure your house appraisal is done accurately. For reliable reports, look no further than South Eastern Appraisal in Somerset, KY. Their team of detail-oriented certified appraisers has provided clients throughout Pulaski County with comprehensive property appraisal reports for nearly 30 years. Call (606) 679-7339 today for inquiries, or visit them online to learn more about their services.