Reasons Why a Home Owner Might Need an Appraisal

Ø Tax Abatement

Most towns have a process by which you as a home owner can contest the tax assessment of your home. This assessment is the number the town uses when determining your property taxes.

First, before you spend any money, you should go to your assessors’ office and obtain a copy of the assessors’ card for you property. This card describes your home, street address, where the deed is recorded, the legal property owner and a detailed description of your house and amenities.

Also inquire about the process; there may be a filling deadline, if you have already missed for the year in question you would have to wait until the following year.

Make sure that the information on the card is accurate. For example the card should show a foot print sketch of your home. This sketch should show any decks, porches or garages that are attached to your home. Also it should indicate the dimensions of your house. Take the time to measure your house to see if the assessors information is correct. Finally make sure you are not being taxed for anything you don’t have. No record keeping system is perfect, and sometimes changes to a given property are missed by the assessor.

If there are no significant discrepancies then the assessor will probably suggest that you have an appraisal done. An appraisal done for financing, a purchase or refinance, is generally not acceptable for the purpose of tax abatement. Both parties are better served by a recent appraisal focusing on the most recent, most similar comparable sales that are available.

Ø For Sale By Owner

Many home owners find themselves in the position of needing or wanting to sell their home but are unwilling to pay a real estate commission. Having a recent appraisal will do two things for you.

It will give you a good idea what your property is worth in the current market and provide a strong position from which to negotiate with a potential buyer.

It should be noted, there is no substitute for a good real estate agent. They know the process inside and out and are a good asset to have in your corner. Also having a recent appraisal does not guarantee that you get X price for your house.

Ø Estate Planning

There are many reasons why you may find yourself in the position of needing an Estate Plan. Suffice it to say, valuing your real property is no small part of the process. Take a little time to make sure you hire the right appraiser. Generally your attorney will know the best people for the job in you area.

Ø Divorce

Divorce is a fact of life. The division of assets always includes, in one form or another, the marital home and or other real property you may own.

As with Estate Planning, the right appraiser is important, your attorney will know who that is.

Ø Home Equity or Home Improvement

Often when securing a loan for either of these two purposes, your lender will have an appraiser that they work with in your area. Sometimes the appraiser they will send may not be familiar with your area. The appraiser may even be from out of state, While this does not mean that he/she is incapable of providing the lender with a good appraisal, you may still be better served with a local appraiser who is familiar with you local market.

Remember your home is your biggest investment. If you need it appraised for any reason, you are not served if it is under valued, nor if it is over valued. It can’t hurt to ask a few questions. Make sure the appraiser they are sending to your home is knowledgeable, experienced and professional.