When you’re buying or selling a home, an appraisal is an important part of the process. It helps banks determine the value of a house to loan the appropriate amount of money in a mortgage. But did you know that there are other situations in which an appraisal can be a valuable tool?
- Home Equity Loans – Homeowners who want to borrow against the equity of their home might get an appraisal to determine the home’s current value. They might perhaps want to use this loan money for a home addition, a kid’s college education, or another big family expense. Refinancing
- Your Home – When interest rates are lower than they were when homeowners originally purchased their home, some choose to refinance at the new lower rate. This lowers their monthly payment and/or the term on their loan. An appraisal would be required to determine the currently value of the home.
- Business Loans – Appraisals of homes can be important for determining the current value of large assets in order to use them as a source of collateral for a business loan.
- Yearly Tax Assessments – Property taxes are assessed against your home every year and sometimes those taxes don’t match the market. You may be able to appeal your tax assessment, and an appraisal of your home could prove that your taxes were assessed at too high of a rate.