Do you need a home appraisal this year? If you are selling your home, of course part of the home buying process involves getting a home appraisal. This sets the fair market value for your home so that a bank can lend the proper amount to a buyer for the mortgage. An appraisal is done by a qualified appraiser and considers a home’s age and condition, plus it’s unique features.
A good bit of a home’s appraisal value comes from the value of similar properties in the area that have sold in the recent past. In addition, features that are heavily considered in an appraisal include the number of bedrooms and bathrooms, the floorplan, square footage, functionality and amenities. Appraisals will also take into consideration any improvements that have been made to the home, so documenting those is very helpful.
But what if you’re not selling your home? Is an appraisal recommended? Sometimes, for financial reasons, an appraisal is a good idea during a divorce, refinance, line of credit request or real estate settlement. Or if you’ve done major renovations to your home. And often, an appraisal can help when you are requesting removal of your PMI (Private Mortgage Insurance) because you believe your equity has reached the level to warrant this action. In addition, if you are challenging a tax assessment, you might want to consider a home appraisal if you believe your property taxes have been assessed too high.