When Do You Need a Home Appraisal?

A professional appraisal provides an independent opinion of a property's market value. While appraisals are commonly associated with buying, selling, or refinancing a home, there are many other situations where an objective valuation can be useful.

Buying a Home

When purchasing a property, understanding its market value can help you make an informed decision about what you are willing to pay.

A professional appraisal provides an independent, third-party opinion of value based on the property's characteristics, comparable sales, market conditions, and other relevant factors. For buyers considering a property outside of a traditional lender-required appraisal, an independent appraisal can provide additional information before making an offer.

Refinancing or Home Equity Financing

If you are refinancing your mortgage or applying for a home equity loan or line of credit, your lender may require an appraisal to establish the property's current market value.

If your lender allows you to select the appraiser, Buxton Associates can work directly with you and provide the documentation required by the lender.

PMI Removal

If you believe changes in your home's value or the amount you owe on your mortgage may affect your eligibility for PMI removal, your mortgage company may require an appraisal or other valuation.

Lender requirements vary depending on the type of loan and the circumstances. An appraisal can provide an independent opinion of your property's current market value for consideration by your lender.

Divorce & Property Division

Real estate is often one of the largest assets involved in a divorce. An independent appraisal can establish a well-supported opinion of the property's market value to help attorneys and parties address property division.

An appraisal may also be useful when one party is considering buying out the other's interest in the property or when the property will be sold.

When a historical value is required, such as the value as of a date of divorce or separation, Buxton Associates can provide a retrospective appraisal.

Estate & Probate

When real estate is part of an estate, an appraisal may be needed to establish its Fair Market Value for estate settlement, probate, tax reporting, asset distribution, or other purposes.

The required valuation date may be the date of death rather than the date the appraisal is ordered. Buxton Associates provides retrospective appraisals when a historical valuation is needed.

Relocation

Employee relocation can involve the sale or transfer of a home, making an accurate understanding of the property's market value particularly important.

Buxton Associates provides independent appraisals for relocation purposes and works with homeowners to arrange a convenient inspection time and gather relevant information about the property.

Home Improvements & Remodeling

Not every improvement adds the same amount of value to a home. Before making a significant investment in remodeling or renovations, an appraisal can help you understand your property's current market position and how improvements may affect its value.

An appraisal can be especially useful when considering projects such as:

• Kitchen or bathroom renovations

• Adding finished living space

• Adding a bathroom

• Major exterior improvements

• Other significant remodeling projects

While an appraisal cannot guarantee how much a particular improvement will increase a property's value, it can provide useful information for making informed decisions.

Selling Your Home

Whether you are working with a real estate agent or selling your home yourself, an independent appraisal can provide another perspective on the property's market value.

An appraiser's role is different from a real estate agent's. An appraiser provides an independent opinion of value based on market evidence and the characteristics of the property, rather than representing a buyer or seller in a transaction.

A professional appraisal can therefore be a useful tool when establishing an asking price or evaluating an offer.

An Independent Perspective

There are many reasons to obtain an appraisal beyond a lender requirement. Whether you are buying, selling, refinancing, settling an estate, dividing property in a divorce, or considering a major investment in your home, an independent appraisal can provide reliable information to help you understand the market value of your property.