If you follow real estate news and trends, you’ve probably come across the term “home appraisal” a couple of times.
This is a process used to determine the market value of a residential property and the findings are presented in the form of an appraisal report.
Home appraisals are widely conducted in California, but are they really necessary? Let’s take a look.
Why Do You Need a Home Appraisal?
Whether you’re a seller, buyer, or lender, home appraisals are important. They help you determine how much a property’s worth and how it compares with other properties in the market. This can then help you in crucial real estate decisions, be it selling, buying, or investing in a residential property.
When Do You Need a Home Appraisal?
A variety of circumstances may call for a home appraisal. If you’re buying a property, a home appraisal informs you of all strengths and flaws of the house you’re looking to invest in. Additionally, you’re required to get one when you’re:
Selling or Refinancing Your Home
If you’re contemplating selling your home and putting it up on online listing platforms, you should really get a pre-listing appraisal conducted first. This will help you get a more comprehensive insight into current market trends and inform you of the market value of your property. Consequently, you’ll be able to determine a fair and more realistic asking price for your house.
Similarly, if you’re refinancing your home, you need to get a home appraisal. This is needed because here you’re replacing your old mortgage. Since your property’s value has most likely changed since you purchased your existing mortgage plan, you need an appraisal report to justify the new mortgage amount to lenders.
Applying For a Home Equity Loan
If you’re considering applying for a home equity loan on top of your existing mortgage loan, then a home appraisal can help you secure the loan more easily. An appraisal report is required by lenders to determine whether or not you’re eligible for a home equity loan, and can improve your chances of getting one.
Appealing Property Tax Assessments
Property taxes are usually calculated on the basis of the property’s market value. If you want to appeal your property tax assessment because it appears to be way too high, you can successfully do so with the aid of an appraisal report. Independent home appraiser can help in strengthening and verifying your case, which can then help in lowering your annual tax.
Torlai Appraisal Services is a trustworthy real estate appraisal firm in California that helps homeowners get accurate home appraisals. Hire our house appraisers today to get started.