When Do You Need An Appraisal?

Everyone is familiar with the need for an appraisal when it comes time to purchase or refinance a home here in Pennsylvania. Mortgage companies and home owners know that the best way to make sure that they have the accurate value of the property is by bringing in an expert, especially one familiar with the  Pittsburgh and Western Pennsylvania real estate market. 

What most people don’t realize is that there are other times that having the services of  just such a certified, licensed and independent real estate professional can be extremely helpful. There are issues such as Property Tax Challenges, PMI Removal, Pre-Sales Decision, Estate Planning, Liquidation and Divorce.

Property Tax Challenges

Every year it seems that there is a discrepancy between what the home owner and the tax assessor believes a property is worth, and the tax assessor always seems to come in at the high end of the scale. For homeowners here in Pennsylvania the best way to challenge the tax assessment is to go in with information and proof on their side in the form of an appraisal.  Googling your address and insisting "it wasn’t worth that much last year" isn’t enough. 

Thankfully, your local Pittsburgh and Western Pennsylvania appraiser can help with this situation. Even though a full appraisal may not be an economical way to save a few hundred dollars on your bill, an appraiser can often do a limited appraisal or neighborhood analysis for much less. The weight these documents carry can definitely help you when before an appeals board.

PMI Removal

PMI, or Private Mortgage Insurance, is often required on Western Pennsylvania homes by lenders when the amount financed is more than 80% of the value of the home. To make paying for the PMI on your Pennsylvania home easier, it is often just folded into the monthly mortgage payment and usually forgotten about. Unfortunately, it's often forgotten for far too long. 

Sometimes PMI is no longer necessary because the Pittsburgh or Western Pennsylvania real estate market has appreciated enough to shrink your loan-to-valu ratio under 80%.  Or because the remaining balance of the loan has dipped below the 80% level. In 1998 the Congress passed the Homeowners Protection Act of 1998, which requires lenders to remove your PMI payments when loan-to-value ratio conditions have been met. If you suspect that you now owe less that 80% of the property value, you simply need to make a request to your mortgage company and an appraiser can be sent out to confirm.

Pre-Sales Decisions

Here in Pennsylvania there are many historic and classic homes and so renovating is something quite a few people do. Once you have decided to sell your home, however, you have to decide whether any pending renovations will add to the value of your home. It is helpful at this time to have an unbiased opinion as to what exactly you should do for your home before selling.

It is because an appraiser has no vested interest in the value of your home that they can help you with this issue.  An appraiser is not paid based on the value of the home but on the work that they do. You will also be able to decide on what price you should ask after having received information from your appraiser, thus making the selling process even smoother.

Estate Planning, Liquidation and Divorce

During the most stressful times in life, such as the passing of a loved one, it often is necessary to make difficult decisions on the disposition of property. The majority of Pennsylvanians do not have a dedicated estate planner or executor and are thus in need of  someone who can help assess the value of what is often the largest part of the estate, a home or other real property. 

Thankfully a local Western Pennsylvania appraiser can help with just such issues. The first step is knowing the true value of the estate. An appraiser can give you the true value of the home or real property, retroactively to the date of death in the case of estates, which allows all parties to come to an agreement on equitable arrangements. 

When a divorce unfortunately involves litigation it is vital to have an unbiased party for help with deciding the value of the home or real property. Let your local appraiser handle this as well.  This will help both parties come to a decision that is considered fair by each.

There are many other uses for real estate appraisers in Pennsylvania and Precision Network Services is always looking for more ways to put their expertise to work for Pittsburgh and Western Pennsylvania home owners and the people who support them.