Paying for a home valuation appraisal can seem perplexing to some folks. After all, can't you just look at prices on local real estate listings and come up with an average? There are several reasons why that's not a good idea, so here's why you need a home property valuation appraisal.
A simple reason for asking a third party to produce an appraisal is independence. No matter how hard a homeowner might try to be unbiased in their assessment of their property, it's hard for them to be realistic. People think about the renovations they've done and how much they originally paid for their property. Likewise, they often make unrealistic comparisons when trying to find similar properties in their area.
It is also notable that some parties require an independent home valuation appraisal. An insurance company setting up a policy or settling a claim, for example, isn't going to humor the homeowner's valuation of their place. The same applies whenever you seek financing. Especially if a house hasn't been on the market in a while, a bank will want to see a new appraisal from an independent party.
Homeowners should also want independent appraisals to match their asking prices to the market. Otherwise, the property could sit for many months and go through multiple markdowns before it reaches an appropriate price.
Keeping Up With Price Trends
Especially in a volatile environment like the current housing market where high prices, inflation, buyer discouragement, and interest rates are mixing dynamically, it's hard to keep up with price trends. The market can turn on a dime with each announcement regarding interest rates, for example. An appraisal from last month might not reflect the market trend today, and that can make selling or buying a house a challenge.
A home property valuation appraisal firm will have local knowledge. Appraisers regularly work with clients like you, and they can tell you how well sales have been matching prices lately. If you're in an up-and-coming neighborhood, an appraiser can tell you to think about the near future when pricing a sale to maximize your return. Likewise, an appraiser can tell a buyer whether a price is below market.
Time and Effort
Finally, the home valuation appraisal process takes time and effort. Appraisers have access to software that can speed things up, but they still have to study your property, find comparable places, and do the math. Given what's at stake, it's wise to pay someone to do the work.
Contact a local home valuation appraisal service to learn more.