When and why do I need a home appraisal?

Do I need an appraisal in order to sell my home?

What factors are used by appraisers to determine a home’s value?

How can I increase the value of my home?

Q:  When and why do I need a home appraisal?

A:  There are many reasons to have your home appraised; however, the most common reason is the purchase of a new home or refinancing your current home.  Lenders require an appraisal prior to issuing a loan.  Another great reason to have your home appraised is to remove mortgage insurance from your monthly mortgage payment.  Once your loan to value ratio is 80/20 or better you no longer need to pay mortgage insurance.  Most lenders allow you to stop paying mortgage insurance by simply getting an appraisal.  Other reasons for getting an appraisal include - divorce, foreclosure, home equity lines of credit and estate sales.

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Q:  Do I need an appraisal in order to sell my home?

A:  No, you don’t need an appraisal when selling your home.  However, many sellers do get an appraisal prior to listing their home to determine an asking price and to have available at showings of their home.

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Q:  What factors are used by appraisers to determine a home’s value?

A:  Appraisers examine many factors during the appraisal process.  The most important factors are location, size, and condition.

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Q:  How can I increase the value of my home?

A:  Time is the best way to increase your home’s value.  All single-family and multi-family homes increase approximately 4-8% annually.  PUD homes (town homes, condos, etc) tend to increase in value at a slightly slower rate.  When updating your home, some updates help to boost your home’s value more than others.  Updating the kitchen and bathroom help to increase your home’s value.  Finishing an unfinished basement is also a good idea, because it increases your home’s livable/finished square feet.

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