The real estate game can be confusing to anyone who tries to play and who doesn't make the rules. Real estate brokers, mortgage lenders, and other business and government entities with a vested interest in the real estate market are savvy and aware of all of the rules whereas current and prospective homeowners may not be. So, as a person who is involved in the real estate game (or trying to be) by trying to buy, own, or sell a house, it is important that you learn about situations in which a real estate appraisal is necessary and what this appraisal can do for you:
When You Are Buying Or Selling A House
Real estate transactions often occur quite infrequently. In other words, because a home is such a big purchase, it can safely be assumed that the buyer intends to keep the property in their possession for many years to come. In these several years of ownership, the value of the property can change drastically.
The area in which the house is located may become more or less desirable, real estate in that particular town or city may have plummeted or skyrocketed depending on various economic and other factors, improvements may have been made to the house itself, and so on and so forth. A myriad of complicated factors are all at work when determining the value of the house.
For the seller, a real estate appraisal will help determine a reasonable asking price for sale and will set expectations. And for the buyer, this appraisal will determine the amount of money a mortgage lender is willing to give for the purchase of the property. In other words, the appraisal can make or break a sale.
When You Are Getting Divorced
Divorce has many consequences, and when property ownership is involved, the situation gets all the more complicated. Before you and your soon to be ex-spouse make any decisions regarding ownership of the home following the divorce, a real estate appraisal is required.
This newly determined value of the house will help determine the exact parameters of the division of assets and property in the divorce. For example, if one party decides to remain in the home, they may need to "buy out" their partner either by actually paying money for full ownership of the home or by allowing their partner to maintain other assets that add up to the value of the house.
On the other hand, if both parties agree to sell the home, the value will be used to determine how much of the value upon sale goes to each party and how other assets will be divided accordingly. While the real estate appraisal does not guarantee a sale price, it does help to determine the overall division of assets in the case of a divorce.
Now that you know a little bit more about the real estate appraisal process and how it may affect you in your journey through life and property ownership, you know when it will be time to hire an appraiser for your home. To learn more, contact a company like Appraisal Office Aspen Ltd with any questions you have.
Share24 February 2015
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