What is a house appraisal? How do you know if you need one? Find the answers you’re looking for right here.
In this guide, we define the process of home appraisal, how long it takes, and what it entails. Then, we list several situations in which a house appraisal is either helpful or necessary. (Buying/selling aren’t the only reasons to get one.)
Read this guide to put your house appraisal questions to rest once and for all. Here’s everything you need to know about house appraisals.
What Is a House Appraisal?
A house appraisal is a professional assessment of the market value of your home. By law, a home appraisal cannot be biased as it is often referred to for legal purposes.
The appraisal only takes a few hours or less and is performed by a certified home appraiser. The results of the appraisal, however, could take over a week to come back.
Reasons You Need a House Appraisal
There are many uses for an official house appraisal report. Here are several common reasons why you’d need a house appraisal.
1. Determine Property Value
Wondering how to determine the true value of your home? There’s no better way than getting a house appraisal.
Anyone selling their home can use this information to calculate an appropriate listing price. And anyone looking to buy the home will need this information to confirm that the asking price is on the level.
2. Buying a Home
Speaking of buyers, it’s necessary for buyers to get a house appraisal before buying. This is so that the lenders know the true value of the home they’re paying for. In other words, the lender wants to make sure they aren’t investing more than the home is worth.
3. Refinancing a Home
Refinancing your home is like buying it all over again. You’re replacing one mortgage loan with another. So you need another appraisal this time around, too.
4. Applying For Other Loans
You may wish to use your home as collateral when applying for a different loan. You’ll need to know the current value of your home in this case as well. Also, your current home value is used to calculate how much you can get from a home equity loan.
5. Challenging Tax Assessments
Your property taxes are based on how much your state thinks your home is worth. If they overestimate this value, then your property taxes will be higher than you should have to pay.
In order to appeal your home tax assessment, you’ll need proof that the value of your house is lower than the state says it is. Often, a house appraisal is required for this.
Do You Need a House Appraisal?
What is a house appraisal? If you find yourself in one of the scenarios above, it’s exactly what you need right now.
Does someone you know need a house appraisal? Then please share this guide with them so that they know.
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