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Summit Appraisal Group
Appraising Atlanta's Homes since 1997
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When do you need an Appraisal
Every year, countless people in the United States buy, sell or refinance their own
slice of the American Dream. Most, if not all, of these transactions include a simple
line item for an appraisal. It has become an understood and accepted part of a real
estate transaction. ''Let's bring in the expert and make sure we're not spending
too much on this property.''
But is this the only reason to get an appraisal? Are there other times when the
services of a certified, licensed, independent real estate professional might
come in handy?
Property Tax Challenges
It's a running joke that every one has a different perspective of what a house is
worth. And it's the tax assessor that seems to always come in at the high end of
the scale! Challenging the tax assessment has become an annual ritual in many parts
of the country. Unfortunately, most people go into these challenges unarmed. They
may pull some information from the internet to support their claims, but have no
real basis other than: ''It wasn't worth that much last year.''
A Summit Appraisal Group real estate appraiser can help in these situations. While it may not be economical
to commission a full appraisal to lop a few hundred off your tax bill, often an
appraiser can do a limited appraisal or neighborhood analysis for much less. These
documents can carry a lot of weight when you appear before an appeals board.
PMI Removal
Private Mortgage Insurance or PMI is the supplemental insurance that many lenders
ask home buyers to purchase when the amount being loaned is more than 80% of the
value of the home. Very often, this additional payment is folded into the monthly
mortgage payment and is quickly forgotten. This is unfortunate because PMI becomes
unnecessary when the remaining balance of the loan - whether through market appreciation
or principal paydown - dips below this 80% level. In fact, the United States Congress
passed a law in 1998 (the Homeowners Protection Act of 1998) that requires lenders
to remove the PMI payments when the loan-to-value ratio conditions have been met.
Many appraisers offer a specific service for home owners that believe they have
met the 80% loan-to-value metric. For a nominal fee, the appraiser can provide you
with a statement regarding the home value. Some will even take the next step and
help you file a challenge with your mortgage company. The costs of these services
are very often recovered in just a few months of not paying the PMI.
Pre-Sale Decisions
Before someone decides to sell a home, there are several decisions to be made. First
and foremost: ''How much should it sell for?'' But first there may be other equally
important questions to ask: ''Would it be better to paint the entire house first?''
''Should I put in that third bathroom?'' ''Should I complete my kitchen remodel?''
Many things which we do to our houses have an effect on their value. Unfortunately,
not all of them have an equal effect. While a kitchen remodel may improve the appeal
of a home, it may not add nearly enough to the value to justify the expense.
Appraisers can step in and help make these decisions. Unlike a Realtor, an appraiser
has no vested interest in what amount the house sells for. His fee is based on his
efforts, not a percentage of the sales price. So seeking a professional appraisal
can often help homeowners make the best decisions on investing in their homes and
setting a fair sales price.
Estate Planning, Liquidation or Divorce
The loss of a loved one is a difficult time in life. Likewise, a divorce can be
a particularly traumatic experience. Sadly, these events are often complicated by
difficult decisions regarding the disposition of an estate. Unlike many wealthy
individuals, the majority of Americans do not have dedicated estate planners or
executors to handle these issues. Also, in most cases, a home or other real property
makes up a disproportionate share of the total estate value.
Here too, an appraiser can help. Often the first step in fairly disposing of an
estate is to understand its true value. Where property is involved, the appraiser
can help determine the true value. At this point, equitable arrangements can more
easily be arrived at among disputing parties. Everyone walks away knowing they've
received a fair deal.
There are other uses for real estate appraisals. The highly-trained individuals
behind these services are always looking for ways to put their expertise to work
for home owners and the people who support them.
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