Home appraisals, while part of the buying process, can also be valuable to you in other situations. When should you rely on an appraisal of your home to help you?
- Your Taxes – Your property taxes are assessed every year against your home according to its market value. But that value might have changed significantly, and you might see that you are being assessed at too high of a rate. You could appeal your tax assessment then, based on a new appraisal of your home, and lower your taxes!
- Small Business Collateral – If you are financing a small business and using your home as collateral for your business loan, you’ll want that loan to be based a current appraisal of your home’s value, in order to maximize your loan amount.
- A Home Refinance – Let’s say you want to refinance your mortgage, in order to get a better rate, or reduce your monthly payment, or even take cash out for a kid’s college tuition (in states where this is applicable). An appraisal of your home will help show the equity you’ve accrued in your home.
- A Home Equity Loan – Applying for a home equity loan means you are borrowing against the equity you’ve accrued in your home for a big purchase like home remodeling or adding a pool. In this process, the appraisal will determine the current value of your home so you can maximize the amount that you can borrow.