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An Appraisal Is Always Needed in Real Estate Transactions Every year, countless people in the Grand Strand area buy, sell or refinance their own home. 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. There are other reasons to have an appraisal however, including: PMI removal, pre-sales decisions and estate planning. Removing PMI From Your Mortgage Payment Private Mortgage Insurance (PMI) is the supplemental insurance that many lenders ask home buyers to purchase when the amount being loaned is more than 80% of the value of the home. This additional payment is often folded into the monthly mortgage payment and is quickly forgotten. This is unfortunate because PMI becomes unnecessary when the remaining balance of the loan - whether through market appreciation or principal pay down - dips below this 80% level. In fact, the United States Congress passed a law in 1998 (the Homeowners Protection Act of 1998) that requires lenders to remove the PMI payments when the loan-to-value ratio conditions have been met. At Watson Real Estate Appraisals, Inc., we offer a specific service for home owners that believe they have met the 80% loan-to-value metric. We can provide you with a statement regarding the value of your home to give to your mortgage company. The costs of these appraisal services are often recovered in just a few months of not paying the PMI. Appraisals Are Needed for Pre-Sales Decisions Seeking a professional appraisal can often help homeowners make the best decisions on investing in their homes and setting a fair sales price during the pre-sales process. Since an appraiser has no vested interest in what amount the house sells for, their fee is based on their efforts, not as a percentage of the sales price. Some important questions to ask in the pre-sales process include: ''Would it be better to paint the entire house first?'' or ''Should I put in that third bathroom?'' or ''Should I complete my kitchen remodel?'' You see, many things which we do to our houses have an effect on their value. Unfortunately, not all of them have an equal effect. While remodeling may improve the appeal of a home, it may not add nearly enough to the value to justify the expense. Appraisals Are Needed for Estate Planning Purposes The loss of a loved one is a difficult time in life. Likewise, a divorce can be a particularly traumatic experience. Sadly, these events are often complicated by difficult decisions regarding the disposition of an estate. Unlike many wealthy individuals, the majority of Americans do not have dedicated estate planners or executors to handle these issues. This is where an appraiser can step in and help. Often the first step in fairly disposing of an estate is to understand its true value. Once an appraiser determines the estate’s true value, equitable arrangements can more easily be arrived at among disputing parties. This way, everyone walks away knowing they've received a fair deal. |
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Watson Real Estate Appraisals, Inc. 4340 Big Barn Drive Suite 102 Little River, SC 29566 Office: (843) 399-3030 Fax: (843) 399-3334 e-mail : info@watsonappraisals.com |