One of the key aspects in transaction of any property, irrespective of whether buying or selling, is property valuation. Property appraisal helps the owners in calculating as to how much their property is worth. Most owners undertake home appraisal procedures with the help of certified and licensed property valuation services who offer independent and unbiased assessment of their properties and help in establishing the current market value.
When it comes to availing loan facilities on your home, getting the property appraised is one of the essential requisites for the owners, sans which banks refuse to lend the money. Listed herewith are some other reasons of undertaking home appraisal apart from the time of selling your home.
Refinancing your home
Home appraisal becomes a necessary procedure when it comes to refinancing your home wherein the owner is replacing their old mortgage with a new one. Lenders will always insist of home appraisal so as to decide the current value of the home and lend money accordingly. The amount financed by the money lending institutions should justify the current online property value estimate which can be gauged by home appraisal procedure. Any property, whose value has declined over the period of time since it was last purchased, will result in refusal of loan to the owners.
Getting a home equity loan
Home equity loans are a type of secondary loans which are availed by the home owners over and above the existing mortgage loan amount. However, the amount of home equity loan will greatly depend on the amount of equity which the owner is eligible for, post subtracting the mortgage value of the loan from the current valuation of the house. Any decrease witnessed in current value of your property, post home appraisal, will disqualify the owners from getting home equity loan.
Applying for other loans
Apart from availing loans on your home, home appraisal is also required in other types of loans namely, business or personal loan. The lenders will need the home appraisal report so as to know the current market value of your property which needs to be kept as collateral while availing any other types of loans.
Appealing tax assessments
In most of the states, the calculation of property taxes is done on the basis of home appraisal reports, which highlights the current market value of your property. In case the price of your home or the neighboring properties has declined and your property tax bill is still high, one is eligible to appeal for tax assessment. Owners can lower the property tax amount by taking an independent home appraisal procedure.
For More Info : - estimate my property value
Comments