Every year, countless people in the United States buy, sell or refinance their own slice of the American Dream. Most, if not all, of these transactions include a simple line item for an appraisal. It has become an understood and accepted part of a real estate transaction. ''Let's bring in the expert and make sure we're not spending too much on this property.''

But is this the only reason to get an appraisal? Are there other times when the services of a certified, licensed, independent real estate professional might come in handy?

PMI REMOVAL

Private Mortgage Insurance : When the amount being loaned is more than 80% of the value of the home many lenders ask home buyers to purchase PMI. Usually, this additional payment is folded into the monthly mortgage payment.  Whether through market appreciation, upgrades, or principal paydown - if that amount dips below this 80% level, PMI becomes unnecessary. In 1998, US Congress passed a law (the Homeowners Protection Act of 1998) that requires lenders to remove the PMI payments when the loan-to-value ratio conditions have been met. Over 50% of all mortgage loans have mortgage insurance (PMI).

An appraisal by a state certified appraiser can help you remove your PMI. The costs of these services are very often recovered in just a few months of not paying the PMI.

Contact your lender. Verify that you are paying mortgage insurance. Confirm that you qualify for PMI removal.  Get their specific requirements for exactly what you need and where to send the information.

Call Davenport Real Estate Appraisal Services to order an appraisal.

PURCHASE OF A HOME

One of the most important issues involved in purchasing a property is developing an opinion of what it's worth so that you can make an informed offer to purchase. A professional appraisal report performed by a qualified, state-licensed appraiser can provide you with an objective, third party opinion of a property's current Market Value. And for the small price of this service, you can give yourself "peace of mind" prior to making an offer to purchase that you're offering a fair price for the property.

SELLING A HOME

Whether you choose to sell your home on your own or use the assistance of a real estate agent, a professional appraisal can help you make a better educated decision when determining your selling price.

Unlike a real estate agent, an appraiser has no vested interest in what amount the house sells for. It's easy for them to step in and give you the information to help you make your decision. Appraiser fees are based on efforts to complete the report and not a percentage of the sales price. So seeking a professional appraisal can often help homeowners make the best decisions on investing in their homes and setting a fair sales price.

REFINANCE OR GET A HOME EQUITY LOAN

If you need to consolidate bills, have a college tuition to pay, or just want to tap into the equity of your home, you'll need a new loan, which oftentimes requires a new appraisal of the property.

DIVORCE SETTLEMENT

A divorce can be a particularly traumatic experience for both parties and is often further complicated by the difficult decision of "Who gets the house?". In most divorce cases, the Court won't usually force the parties involved to "buyout" the other party's interest but it may however order the sale of the home so each party gets an equal share of the equity. Regardless of the situation, it's a good idea to order an appraisal so both parties are fully aware of what the true market value is.

If the parties want to sell the home, they'll have a better idea of what price to set. And on the flipside, if a "buyout" is the chosen option, both parties will feel like they've gotten a fair assessment.

ESTATE LIQUIDATION

The loss of a loved one is a difficult time in life and settling an estate from a death, or probate, often requires an appraisal to establish Fair Market Value for the residential property involved. The ethics provision within the Uniform Standards of Professional Appraisal Practice (USPAP) binds us with confidentiality, ensuring the fullest degree of discretion.

Unlike many wealthy individuals, the majority of Americans do not have dedicated estate planners or executors to handle these issues. Also, in most cases, a home or other real property makes up a disproportionate share of the total estate value.

Here too, an appraiser can help. Often the first step in fairly disposing of an estate is to understand its true value. Where property is involved, the appraiser can help determine the true value. At this point, equitable arrangements can more easily be arrived at among disputing parties. Everyone walks away knowing they've received a fair deal.

PROPERTY TAX APPEAL

Every few years, a town or city may elect to go through a “revaluation” of all properties in their respective community. A revaluation company may be contracted to perform these services or the town may elect to perform these services in house. The revaluation could be based upon an interior or exterior inspection of your property.

New tax assessments are created and often times new mill rates are established by which tax revenue is generated for each town or city.

If an owner of real estate disagrees with their new tax assessment they could dispute this with the board of assessment appeals. An appraisal performed by a certified appraiser, may aid in the process of appealing ones taxes if the appraised value supports a value that differs from the revaluation company.  A real estate appraiser can help in these situations. While it may not be economical to commission a full appraisals to lop a few hundred off your tax bill, often an appraiser can do a limited appraisal or neighborhood analysis for much less. These documents can carry a lot of weight when you appear before an appeals board.

BANKRUPTCY/ FORECLOSURE

We understand people sometimes experience financial difficulties in their lives. An appraisal is often required to establish market value of your real estate to determine if there is sufficient equity which will satisfy the outstanding debt. We handle each client professionally and ensure confidentiality with each case.