We proudly accept:
|
|
When do you need an Appraisal?
Every year, countless people in the United States buy, sell or
refinance their own slice of the American Dream. Most, if not
all, of these transactions include a simple line item for an
appraisal. It has become an understood and accepted part of a
real estate transaction. ''Let's bring in the expert and make
sure we're not spending too much on this property.''
But is this the only reason to get an appraisal? Are there other
times when the services of a certified, licensed, independent
real estate professional might come in handy?
Property Tax Challenges
It's a running joke that every one has a different perspective
of what a house is worth. And it's the tax assessor that seems
to always come in at the high end of the scale! Challenging the
tax assessment has become an annual ritual in many parts of the
country. Unfortunately, most people go into these challenges
unarmed. They may pull some information from the internet to
support their claims, but have no real basis other than: ''It
wasn't worth that much last year.''
A real estate appraiser can help in these situations. While it
may not be economical to commission a full appraisals to lop a
few hundred off your tax bill, often an appraiser can do a
limited appraisal or neighborhood analysis for much less. These
documents can carry a lot of weight when you appear before an
appeals board.
PMI Removal
Private Mortgage Insurance or PMI is the supplemental insurance
that many lenders ask home buyers to purchase when the amount
being loaned is more than 80% of the value of the home. Very
often, this additional payment is folded into the monthly
mortgage payment and is quickly forgotten. This is unfortunate
because PMI becomes unnecessary when the remaining balance of
the loan - whether through market appreciation or principal
paydown - dips below this 80% level. In fact, the United States
Congress passed a law in 1998 (the Homeowners Protection Act of
1998) that requires lenders to remove the PMI payments when the
loan-to-value ratio conditions have been met.
Many appraisers offer a specific service for home owners that
believe they have met the 80% loan-to-value metric. For a
nominal fee, the appraiser can provide you with a statement
regarding the home value. Some will even take the next step and
help you file a challenge with your mortgage company. The costs
of these services are very often recovered in just a few months
of not paying the PMI.
Pre-Sale Decisions
Before someone decides to sell a home, there are several
decisions to be made. First and foremost: ''How much should it
sell for?'' But first there may be other equally important
questions to ask: ''Would it be better to paint the entire house
first?'' ''Should I put in that third bathroom?'' ''Should I
complete my kitchen remodel?'' Many things which we do to our
houses have an effect on their value. Unfortunately, not all of
them have an equal effect. While a kitchen remodel may improve
the appeal of a home, it may not add nearly enough to the value
to justify the expense.
Appraisers can step in and help make these decisions. Unlike a
Realtor, an appraiser has no vested interest in what amount the
house sells for. His fee is based on his efforts, not a
percentage of the sales price. So seeking a professional
appraisal can often help homeowners make the best decisions on
investing in their homes and setting a fair sales price.
Estate Planning, Liquidation or Divorce
The loss of a loved one is a difficult time in life. Likewise, a
divorce can be a particularly traumatic experience. Sadly, these
events are often complicated by difficult decisions regarding
the disposition of an estate. Unlike many wealthy individuals,
the majority of Americans do not have dedicated estate planners
or executors to handle these issues. Also, in most cases, a home
or other real property makes up a disproportionate share of the
total estate value.
Here too, an appraiser can help. Often the first step in fairly
disposing of an estate is to understand its true value. Where
property is involved, the appraiser can help determine the true
value. At this point, equitable arrangements can more easily be
arrived at among disputing parties. Everyone walks away knowing
they've received a fair deal.
There are other uses for real estate appraisals. The
highly-trained individuals behind these services are always
looking for ways to put their expertise to work for home owners
and the people who support them. |
|