If you are looking to have a better idea of the market value of your home, you should proceed to have your home appraised. Appraisals can either be evaluated or performed by a real estate agent or by a professional property appraiser. Most people usually get their homes evaluated in order to sell their property at the best possible price. It is ill-advised for you to sell your property without having it appraised by professionals first.
However, there are other reasons why it is advisable for you to pay for an independent valuation. There are services that provide free home evaluation too! Without beating about the bush any further, here are 5 reasons you should have your home evaluated.
- You will need to evaluate your home for home insurance
It is advisable for you to get your home insured. And, in order for you to do so, it is necessary for you to first have your home evaluated. A professional property valuation will give you an accurate idea of how much insurance coverage you require. You should also take into account the rebuild value of your home when setting up an insurance plan.
- Tax Reassessment
There are many states in America that base property taxes on the basis of the current market value of the homes. Hence, if you get your property evaluated and find that it has decreased in value, you can request the responsible authorities to perform a reappraisal of the property. If you do this, you will increase your chances of paying a lower annual property tax.
- Home Equity Loan
You will need to have your home evaluated when you seek a home equity loan. The evaluation will be especially useful if the property values in your community increases. If the current value of your home is more than when you first bought it, your equity in the home will increase in value too. However, if the value of your home decreases, so will your value of the equity in the home.
- Business Loans
If you are planning to take out business loans by putting your home up as a primary collateral source, it is essential for you to first get your home appraised by a professional appraiser. After the appraiser documents the value of your home, you can then use the documents to acquire a loan from the bank or other lenders.
You will need to have your home evaluated if you want to refinance your home. Lenders and banks have to ensure that the collateral value of your home justifies the refinanced loan amount that you are requesting. The evaluation will also help you know exactly what percent of the current market value of your property you own. Basically, in a nutshell, refinancing allows you to access the equity in your home. And, refinancing your mortgage can lower your monthly payment.
partnered post • cc-licensed image by Bruce Guenter