How to Get a Property Appraisal Before Refinancing
Getting the best value from refinancing property depends on an accurate property appraisal beforehand. An appraisal that is too low will mean getting less money for the refinancing than the property is actually worth. On the other hand, an appraisal that is too high will make refinancing much harder and may lead to higher property taxes once the inflated estimate makes its way from a bank's computer system to the Internal Revenue Service.
Other People Are Reading
Instructions
-
-
1
Contact the bank or lending institution of choice and ask what their approach is to property appraisal during refinancing. Some banks have an appraiser on staff that they will send out to inspect the property before refinancing, while others contract with an independent property appraiser. If they have multiple property appraisers with whom they contract, get their telephone numbers.
-
2
Contact two or three appraisers before deciding which one to get. Speak with the appraisers the bank or lending institution recommends before contacting other appraisers, but do contact other appraisers if the impartiality of the bank-recommended appraiser seems to be in doubt. Ask if the bank would be open to having another appraiser inspect the property, and make sure that you understand exactly why one appraiser is recommended over another.
-
-
3
Prepare the property before it is appraised. Make sure that all the titles and certifications are in order, including any property or community agreements, copies of pest, septic system and well inspections and common maintenance charges. Get any repairs that need to be made done as well, not to mention picking up the property, which extends to mowing the lawn and raking it if necessary.
-
4
Accompany the property appraiser as he visits the property. Be on hand to provide any information necessary, and point out any home improvements that have been made, such as green building materials or heating systems, as well as improvements that may be overlooked. Since the appraiser may also want to inspect areas that are hard to access, such as utility crawl spaces, cellars and attics, be sure to provide easy access for her.
-
5
Look over the appraisal report before it gets to the bank, if possible. Go over the information and make sure that there are no glitches or missing information. If you have any disagreements with the information in the report, contact the appraiser and calmly discuss it with him.
-
1
Tips & Warnings
The bill for appraising the property before refinancing is given to the property owner instead of the bank. Since you will be paying for the appraisal, make sure you get an appraiser you can trust. Get references, ask to see the appraiser's license, and make sure the appraiser is truly independent and trustworthy before hiring him.
You can find an independent property appraiser at a website like Find-Appraisers.com (see Resources below).
