An objective, independent property appraisal Brisbane is normally required prior to taking out home insurance. Here, most insurers prefer to send their own appraisers — but there are other instances when an appraisal might come in handy. Let’s take a look at some of these instances.
Preparing to Sell
If you’ve decided to put your house on the market, this would be a great time to get a property appraisal Brisbane. Doing so will help you determine the best listing price (i.e. an amount that will maximize your return on investment, but without being so high as to scare off potential buyers). While the eventual buyer will still order their own appraisal, figuring out the ideal listing price beforehand will increase your chances of realizing a quick sale.
Refinancing
Refinancing replaces your old mortgage with a new one, and it’s pretty much guaranteed that the value of your home has changed since you took out the old one. Ergo, appraisal will be necessary to determine how much loan can be justified by the property’s current worth. A rise in valuation will make it possible to secure cash as part of refinancing, but a decline could throw a spanner in your plans.
Leveraging Equity
Leveraging the equity you’ve accumulated in your home over time by paying off the mortgage is yet another way to borrow funds. And like with refinancing, qualification and loan amount will both be based on the property’s latest valuation figure. The only difference is that your home equity loan will simply become an additional obligation on top of your existing mortgage — as opposed to replacing the latter.
PMI Removal
Lenders will usually require private mortgage insurance when the borrower is unable to raise 20% of the property’s purchase price, or they simply elect to put up a lower down payment. Whatever the case, you might be able to relieve yourself of the obligation if your share of equity has exceeded the threshold. An appraisal will obviously be needed to prove that.
Appealing Tax Assessments
Property taxes are based on current valuation figures in just about all jurisdictions. Nonetheless, there’re times when your tax bill might seem unfairly high. For instance, it could be that property prices in your neighborhood have fallen, but the assessors are still working off old information. Having your house appraised by a professional could help you lodge a successful appeal.
