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Have Your Home Valued

Get To Learn More About Getting Your Home Valued

 

There are a number of reasons as to why you would want to have your home appraised. Whether it is for mere curiosity or re-sale purposes, home valuations are very important. This article takes you through all the prerequisites that you will need while getting your home valued.
 
What is a home valuation? How is it done? How can one ensure that their homes are appraised properly? The article will make an attempt at providing answers to these and other relevant questions pertaining to home appraisals. Lets start off, shall we?
 
What Is The Meaning Of A Home Valuation Or Appraisal?

This is probably the first thing that you would want to find out. Well, a home appraisal is a determination of the actual market value of an individuals home. It is, therefore, a survey that is conducted by a professional, otherwise known as an appraiser, on your home to estimate its market value. 
 
One can have their home appraised just to satisfy their curiosity. In spite of that, there are some circumstances that make it mandatory to have an individuals home valued. One of these reasons is when the property or home is scheduled for a re-sale. The real estate agent would want to determine the actual value of the property for the benefit of the potential buyer.
 
The other reason would obviously be when the homeowner has taken up a loan or acquired any financial support against their homes. Banks and financial institutions always require some form of collateral security. The loan applicants home can be used to provide security for the amount borrowed. As such the home needs to be appraised to determine its worth and consequently the amount of money that the homeowner can borrow.
 
Your home can also be subjected to an independent appraisal by your insurance company. This is only applicable to people who have taken up insurance covers for their homes. The evaluation is used by the insurance company to determine the level of compensation that would be due to you in case the home is damaged or completely destroyed.
 
Although there might be other reasons for getting your home valued, these are the common ones.
 
Who Does The Valuation? 

I am willing to bet that this was the second question on your mind. Now that you know what a home appraisal is, whose responsibility is it to perform the valuation? The answer is pretty simple. Home valuations are done by a licensed professional referred to as an appraiser. 
 
These are individuals who are held to strict ethical standards and are answerable to the state or relevant authorities. To be more precise, a home appraiser is any third party that is called in to offer their unbiased opinion on the market value of your home. 
 
The other parties involved include the home owner and the other party interested in the property, be it a buyer or the bank.
 
On most occasions, the appraiser will be called for by the lender or potential buyer. Only on rare occasions, when both the homeowner and the lender are familiar with the appraiser, will the homeowner be required to contact their preferred appraiser. In spite of that, the lender is still at liberty to call upon their contact to perform the appraisal.
 
What Aspects Of The Home Are Considered In The Appraisal? 

You would definitely be more than eager to find out what a home appraisal really involves. The first aspect of your home that an appraiser will be interested in is the condition of the home. Are there any leaking pipes? Is the roof okay? Is the floor condition satisfactorily? Is the home's HVAC system working properly? These will all go into assessing the condition of your home.
 
The second thing that the appraiser will be interested in is the value of all neighbouring property. How much are other homes in the neighbourhood selling at? How fast does property move around the neighbourhood? 
 
The evaluator might also be concerned about the zoning laws in your area. What are the limitations that are imposed by the homeowners association on property use? Are there any laws regulating the type of fence one can erect around the property?
 
Whatever the aspects that will go into appraising your home, the appraisal will be for either of the two reasons, a cost/replacement opinion or a sales comparison. A sales comparison will look at the prices that other homes within the neighbourhood fetch in the market. Using this approach, your home would be valued close to other homes in the vicinity.
 
The alternative approach tries to assess the amount it would cost to repair or renovate the home if it is destroyed. The approach is commonly taken when the home in question is new.
 
What Are Some Of The Things That One Can Do To Get A Better Or Desirable Appraisal?

While getting your home valued, the first thing that you would want is for the appraisal to be desirable. This does not mean that you falsify the results though. There are a number of things that you can do to bolster your appraisal.
 
• You can start by ensuring that all parties interested in the value of the home agree on a local appraiser or one who understands the area pretty well. The level of intimacy that the appraiser has with the area will determine the estimated worth of your home. 
 
•  Be sure to provide the appraiser with at least four or five appraisals that were done for homes that are similar to yours. This will provide them with a solid framework to work on. The appraisals must have been conducted by reliable appraisers.
 
•  Inform the appraiser of any recent developments or status that your neighbourhood has acquired. This might include construction of a new museum or creation of a state-of-the-art theme park. Such developments increase the value of property within the region.
 
•  Provide a documentation of any recent renovations that you might have had done in the home. This documentation must be backed up by financial receipts. The value of recently renovated property is always slightly higher.
 
•  Lastly, there is nothing that a little cleaning up canít achieve. The appraiser can be very easily persuaded by the way the home has been maintained.

What Implications Would A Low Home Appraisal Have?  

After successfully getting your home valued, you will be probably wondering what the outcome will be. Will the home get the appraisal that you desired? If not, what will that mean? Well, appraisals that lower the value of your home are not a cause of good news. Low appraisals set certain unfavourable limits to your home.
 
First of all, the amount of loan that one can secure will be greatly reduced. Banks usually award loans amounting to 80% of your home value. That means that for whatever the estimated value of your home, you are only entitled to loans amounting to 80% of that value.
 
The re-sale value of your home will also be greatly reduced. The real estate industry has become very competitive. As a result of this, even minor faults on your home have the potential of discouraging potential buyers. It even gets worse when the home is valued badly.
 
It will be pretty difficult to convince potential buyers to invest in a home whose appraisal is not good enough. The homeowner might be forced to lower the asking price. Nonetheless, this will not guarantee a quick enough sale of the home.
 
In conclusion, this article has demystified as much as possible the topic on home valuations. After reading the article, it is my belief that one can now confidently deal with the real estate industry and get the best from their homes.

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