I think most people realize that whenever a property is bought or refinanced, the lender typical orders an appraisal. We have many mortgage/bank clients and we do these type of appraisals all over Hillsborough (Manchester NH, Nashua NH), Merrimack (Concord NH), Rockingham (and more) counties. However, financing appraisals are only the tip of the iceberg. Here are my “Top 10 Reasons to order an appraisal” for the average person.
- Thinking of selling – A listing appraisal is different from a market analysis. It is an independent appraisal that assists you in pricing the home correctly.
- Buying a property – While the appraisal that will be done for the mortgage company will most likely be done honestly, you need to remember that the appraiser represents the bank. If you are uncertain of the value, I recommend you hire you own independent appraiser.
- Divorce – Divorce is a difficult and stressful time. Decisions made during this turbulent time with effect you for years. Have an appraisal completed to evaluate your assets prior to dividing them.
- Estate/Inheritance – If you inherit a property you will need to document the “cost basis” of the property at the time you acquire it (market value at the time you receive it). This is very important to avoid being taxed on the entire value of the property down the road.
- Financial Planning – Similar to #4, it is important to document value of the property for the IRS when it comes to transferring property into different businesses, trusts or other entities.
- Tax Abatement – Assessor’s get tons of request from upset homeowners seeking Tax Abatements. Submit a professional certified appraisal with your application and you chances for success with rise.
- Family Transfers – Ever hear the saying “Never do business with family”. It is because many times things don’t work out for one of the parties. When that happens, people tend to forget the original details. For your relationship’s sake, if you are selling to a family member have it appraised independently so everybody knows they were treated fairly even years down the road
- Considering repairs or renovation – If you are considering making major repairs/renovations or adding an addition to your home, and are concerned with the “after repaired” value of your home, then it is prudent to hire an appraiser to tell you what the property will be worth.
- Buying real estate as an investment – An appraiser can provide you with opinions of the “after repaired value? (#8), as well as forecasting cash flows and income and expenses for the investment by analyzing rents, expenses and the many “soft costs” that go into investments such as management, vacancy, maintenance and reserves.
- Bank Workouts/Short sales – If you are trying to negotiate with the bank or are seeking a “short sale”, it is wise for someone OTHER THAN THE BANK to appraise it. The results of the appraisal may give you negotiating leverage.
There are MANY other reasons to hire an appraiser (ok…Jack Lavoie) to assist you in your real estate endeavors. If you need assistance contact me at 603-644-1000, email me at jack@jacklavoie.com or goto www.jacklavoie.com
Awesome as always Jack! Great job!