When Should You have a Real Estate Appraisal Done?

As a homeowner, you may have a general idea of what your home is worth. You most likely had to deal with a real estate appraisal before you purchased it. However, just because it was appraised when you purchased it, it does not mean that the same appraisal amount still holds true. For the most part, the appraisal value does not really matter, but there are times when it is necessary to know what the true value of your home may be. Do you know when you should have a real estate appraisal done?

There are really only two times that you need an appraisal done. One is when you are trying to sell your home and the other is when you hope to refinance it. The reason you should have it done on your own is simple; to get the most value from it that you can. It makes a great comparison to have your chosen appraiser there to give you a price before the bank sends out their appraiser. That way you have two numbers to go with, one will be someone that you trust and the other will be someone who the bank trusts.

The reason this matters is because you do not want to be caught in a position where the banks appraiser has no real knowledge of the value of land around your home. This could cause you to have a lower appraisal value than you deserve. This could slow down a potential sale. It could affect a sell or how much you can refinance.

If you are selling your home and you have it priced at $300,000, your potential buyer agrees to $250,000, but the banks appraiser says it is only worth $200,000, they may only be willing to finance that much. This puts your buyer and yourself in a bind. You want the agreed on amount and the buyer most likely does not have $50,000 sitting at home in their safe. You either have to drop your price or let the buyer find something else.

Had you already had it appraised for closer to the original sale price, you could take that information to the bank and show proof of its value. They may send out another appraiser or may take your word on it, either way, you stand a better chance of getting a reasonable amount that everyone can agree on. This makes selling your home go a lot smoother for everyone involved and everyone can move on with the next phase of their life that much faster.

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