A real estate appraisal is a service you can get to determine the current value of your home. People most often get one when buying a house, but there are many reasons people hire appraisers. Here are five common reasons people need real estate appraisals.
1. You Are Thinking About Selling Your House
When homeowners start thinking about selling their homes, they might be worried if it is a good idea. They might also wonder how much money they will be able to make. One of the best ways to determine the approximate profit you can make is by getting a real estate appraisal. The appraisal will tell you your home's value, and you can base your decision on that.
2. You Want to Refinance Your House
If you ever decide to refinance your house, you will also need an appraisal. The lender you work with for the refinancing loan will require an appraisal to find out the home's value. Getting an appraisal is also vital if you want to get a home equity loan or use a cash-out refinancing loan.
3. You Found a Buyer for Your Home
When selling your house, the person buying it will not be able to get the loan without first getting an appraisal. The buyer's lender typically requires this before closing on the sale as the lender needs to make sure the house is worth the amount they are offering for the loan.
4. You Want to Get Rid of Your Private Mortgage Insurance
If you pay private mortgage insurance (PMI), you might have trouble dropping the insurance when you have enough equity in your home. One of the best ways to prove that you no longer need PMI is by getting a home appraisal.
5. You Are Going Through a Divorce
People also generally need appraisals when going through divorces. If you own a home when going through a divorce, you will need to know the value of the home. The appraisal you get will tell you the home's value, and you can use this amount to determine how to divide the house in your divorce case.
You might need a real estate appraisal for any one of these reasons listed. If you need one, you can get one by hiring a local real estate appraiser. If you are unsure about who to hire, ask a local lender or real estate agent as they can refer an appraiser to you.