Home Appraisal Referral

There is more than one reason for using a Home Appraisal Referral

Every year, thousands of people buy, sell, or refinance their homes. Nearly all of these transactions will require a home appraisal referral from your real estate agent. Over time, the home appraisal referral has become a standard part of any real estate transaction. The most common reason for using a home appraisal referral service when buying real estate is to make sure that you are paying the appropriate price for a property according to its market value.

However, there is more than just one reason for using a home appraisal referral. One reason for using a home appraisal referral is when you need to refinance by getting a home equity loan. You need to know what your home is worth if you want to get a loan in which you use it as collateral.

A second reason for using a home appraisal referral is to determine the necessity of private mortgage insurance (PMI). Usually, a lender will require the borrower to take out PMI if the loan amounts exceeds a certain percentage of the value of the home. If the market value of the home sinks below this percentage, then the borrower can save on the insurance payments.

A third compelling reason for using a home appraisal referral is to settle a divorce. When it comes to divorce settlement, the home is often sold so both parties will get an equal share of the proceeds. Therefore, it is important that both parties get a good idea of what the market value of their home is. In the rare case where one party “buys out” the home from the other, the reason for using a home appraisal referral is so both parties are sure the transaction is fair.

A fourth reason for using a home appraisal referral is when it becomes necessary to liquidate an estate of a loved one who has passed away. A home appraisal referral helps the parties involved in the inheritance understand the true market value of estate in case they choose to sell it.

And finally, an often overlooked reason for using a home appraisal referral is to determine whether certain home improvements will increase the market value of your home in the event of a sale. A certified home appraisal professional has the ability to tell you approximately how much repainting the house or putting in a third bathroom will increase the value of your home.