Every year, countless people across the United States buy, sell, or refinance their own slice of the American Dream. Most, if not all, of these transactions include a simple yet crucial step: an appraisal. It’s become an understood and accepted part of any real estate transaction—“Let’s bring in the expert to make sure we’re not overpaying or underselling this property.”
But is this the only reason to get an appraisal? Not at all. Below, we explore the various situations where the expertise of a certified, licensed, and independent real estate appraiser can be invaluable.
It’s a running joke that everyone has a different perspective on what a house is worth, and tax assessors often come in on the higher side of the scale! Challenging property tax assessments has become an annual ritual for many homeowners, but most enter this process unarmed. They might pull information from the internet to support their claims, but without solid, professional evidence, their chances of success are slim.
This is where a real estate appraiser comes in. While it may not always be cost-effective to commission a full appraisal to save a few hundred dollars on your tax bill, appraisers can often perform a limited appraisal or a neighborhood analysis for a more affordable fee. These documents carry significant weight when presented to a tax appeals board.
Resource: Learn about the property tax appeal process in Tennessee through the Tennessee Comptroller of the Treasury.
Private Mortgage Insurance (PMI) is a supplemental insurance often required by lenders when a borrower’s loan amount exceeds 80% of the property’s value. Unfortunately, many homeowners forget about this additional payment, even when it becomes unnecessary due to market appreciation or principal paydown.
Thankfully, the Homeowners Protection Act of 1998 requires lenders to cancel PMI once the loan-to-value (LTV) ratio meets the 80% threshold. Many appraisers offer specific services to help homeowners confirm they’ve met this requirement. For a nominal fee, an appraiser can provide a professional valuation and even assist with filing a challenge to remove PMI. Often, the cost of this service is recouped within months of no longer paying the additional insurance premium.
Resource: For more information on PMI cancellation, visit the Federal Housing Finance Agency (FHFA).
Before putting your home on the market, several key decisions must be made:
While upgrades and maintenance can improve your home’s appeal, not all renovations significantly boost property value. For example, while a kitchen remodel may look great, it may not provide enough return on investment to justify the expense.
A professional appraiser can offer unbiased advice. Unlike realtors, who may have a vested interest in the sales price, appraisers are paid for their efforts, not a percentage of the property’s value. This ensures homeowners make informed decisions about home improvements and setting a fair sales price.
Resource: Discover the renovations that offer the best ROI with this Bankrate Guide to Renovations.
The loss of a loved one or the dissolution of a marriage is always difficult, and these situations are often made more challenging by the need to distribute assets fairly. In many cases, a home or other real property constitutes a significant portion of the estate’s value.
A professional appraisal is often the first step in determining a property’s true market value. With this information in hand, disputing parties can reach equitable agreements. Knowing the actual value of the property ensures everyone involved feels they’ve received a fair deal.
Resource: For legal advice and guidance on handling estate taxes, consult the IRS Estate Tax Page.
The expertise of real estate appraisers extends far beyond these scenarios. Here are additional times when an appraisal may be beneficial:
Appraisers are trained professionals who can help homeowners, buyers, and lenders make smarter decisions by providing accurate, unbiased property valuations.
At Advanced Appraisal TN, we’ve built our reputation on delivering high-quality appraisals for residential and commercial properties. With over 60,000 properties appraised and deep expertise in Knoxville, Nashville, and across Tennessee, we’re your trusted partner for reliable valuations.
Ready to schedule your appraisal? Contact us today and let our licensed experts guide you through the process.
Resource: Find certified appraisers in Tennessee through the Appraisal Subcommittee’s National Registry.
1. What’s the difference between an appraiser and a home inspector?
An appraiser determines a home’s value, while a home inspector evaluates its condition.
2. How long does the appraisal process take?
Typically, appraisals take 1-2 hours, with a full report delivered within a week.
3. Are appraisals required for refinancing?
Yes, lenders often require appraisals to determine your home’s current value.
4. Can I prepare for an appraisal?
Yes! Clean your home, make minor repairs, and provide documentation for recent upgrades.
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