Whether you're interested in buying or selling a home, a real estate appraisal is an essential part of the process. Used to determine the approximate value of a property, an appraiser will look at the square footage, lot topography, and general condition of the home. If you own a home or are looking to buy, here’s what you should know about why you need an appraisal. 

Why Are Home Appraisals Important?

A home appraisal is an evaluation to determine what the property is worth. This is separate from an inspection, which uncovers potential issues with the home, so buyers can have them fixed or adjust their buying decision. Mortgage companies and lenders often require an appraisal to provide loans. Having an impartial third party confirm that the home is worth the purchase price or loan helps them protect their investment. 

Property owners can also order their own appraisal to pinpoint a reasonable sales or rental price or determine if certain upgrades may be worthwhile. For example, getting an appraisal before listing your home may help you set a price that buyers are likely to be approved for. 

When Should You Schedule a Home Appraisal?

During property transactions, appraisals are often required and arranged through the mortgage lender. However, property owners may schedule their own before listing to determine an accurate sales price. Buyers who are paying in cash or without a traditional mortgage can also request an appraisal and list that as a contingency in their offer. Some may also just schedule an appraisal during the sales process for educational purposes. 

Additionally, homeowners may need an appraisal to take out a home equity line of credit or refinance their home, especially since the lender will want to know the approximate value to determine how much to provide. Some people also schedule their own real estate appraisals when appealing tax assessments; for example, if your tax bill went up more than expected, an appraisal can provide the proof needed to lower your rates. 

If you’re looking for professionals to provide real estate appraisals, contact Galvin Realty Group Inc. in Rochester, NY. The property management company offers a wide array of services and brings more than 50 years of experience to every job. Visit the website to learn more about real estate appraisals, or call (585) 546-1290 to request service.