Reasons to Order a Residential Appraisal

More Than Just a Mortgage Requirement

A residential appraisal is commonly associated with buying or refinancing a home, but there are many other situations where an independent appraisal can provide valuable information.

Online home-value estimates and automated valuation models (AVMs) can provide a general indication of value, but they typically cannot account for the full range of property-specific characteristics that can influence market value. A professional residential appraiser evaluates the property, researches relevant comparable sales and competing properties, and analyzes current market conditions to develop an independent opinion of market value.

At DiCicco & Associates, we provide professional residential appraisal services for homeowners, lenders, attorneys, real estate professionals, and other clients throughout Southeast Florida and Metro Atlanta.

1. Determine Your Home's Current Market Value

Understanding your home's current market value can be important when making significant financial or real estate decisions.

A professional appraisal considers factors such as:

• Recent comparable sales
• Current competing listings
• Property size and utility
• Age, quality, and condition
• Lot size and site characteristics
• Location and neighborhood influences
• Renovations and improvements
• Views, waterfront, golf, or other amenities
• Current supply, demand, and market trends

An appraisal provides an independent valuation based on market evidence rather than relying solely on an online estimate or a homeowner's personal expectations.

2. Support a Property Tax Assessment Appeal

If you believe your property's assessed value does not accurately reflect its market value, an independent appraisal may provide useful documentation for a property tax appeal.

The specific appeal process, deadlines, and requirements vary by jurisdiction. A professional appraisal can provide an independent opinion of market value supported by comparable sales and an analysis of the property's characteristics and local market conditions.

DiCicco & Associates can provide residential appraisal services for homeowners seeking independent valuation information in connection with a property tax assessment appeal.

Important: An appraisal does not guarantee that a property's assessed value or property taxes will be reduced. The final decision rests with the applicable taxing authority or value adjustment board.

3. Determine Whether You May Qualify to Request PMI Removal

Private Mortgage Insurance (PMI) can increase a homeowner's monthly mortgage payment. Depending on the type of loan and the applicable requirements, homeowners may be able to request cancellation or termination of PMI when certain loan-to-value conditions are satisfied.

An appraisal may be used by a mortgage lender or loan servicer to establish the property's current market value when evaluating a PMI-related request.

Because PMI requirements vary by loan type, lender, and applicable law, homeowners should first contact their mortgage servicer to determine whether an appraisal is required and what valuation requirements apply.

DiCicco & Associates provides professional residential appraisals that can help homeowners document current market value when an appraisal is appropriate for their situation.

4. Establish Real Estate Value for Divorce or Property Settlement

Real estate is often one of the most significant assets involved in a divorce or property settlement.

An independent residential appraisal can provide an objective opinion of market value that may be useful when addressing:

• Marital property division
• Property buyouts
• Settlement negotiations
• Mediation
• Litigation
• Determining each party's financial interest
• Establishing a historical value when required

DiCicco & Associates provides independent residential appraisals for attorneys and private clients. The appraiser's role is to develop an objective opinion of market value based on the property and available market evidence, rather than advocate for either party.

5. Establish Value for an Estate or Probate

Settling an estate following the death of a property owner can involve significant financial and legal considerations. Real estate may represent a substantial portion of the estate, making an accurate valuation important for estate administration and property distribution.

A Date of Death Appraisal or other retrospective appraisal may be appropriate when the required valuation date is in the past.

Estate and probate appraisal assignments may be used for purposes such as:

• Estate settlement
• Probate
• Property distribution
• Inherited property
• Tax-related reporting
• Establishing historical market value
• Settlement among beneficiaries

Historical valuations require the appraiser to analyze the market and property circumstances as they existed on the applicable effective date.

DiCicco & Associates provides professional estate, probate, and retrospective residential appraisal services for homeowners, attorneys, executors, accountants, and other authorized parties.

6. Obtain a Professional Relocation Appraisal

Relocating for employment or other personal reasons can involve selling an existing home while simultaneously purchasing or renting another property.

A professional relocation appraisal can provide an independent opinion of market value supported by comparable sales, current competing properties, market trends, and the specific characteristics of the property.

Relocation assignments may also involve specific client requirements, deadlines, reporting formats, or intended uses. DiCicco & Associates works with homeowners and relocation professionals to provide residential appraisal services tailored to the requirements of the assignment.

7. Determine Your Home's Value Before Selling

One of the most common reasons homeowners order a pre-listing appraisal is to better understand their property's current market value before putting it on the market.

A professional appraisal can provide an independent perspective that may complement the market information provided by a real estate agent.

The appraisal analysis may consider:

• Recent comparable sales
• Current competing listings
• Neighborhood market trends
• Property size and layout
• Age, quality, and condition
• Renovations and improvements
• Lot and site characteristics
• Location influences
• Views and amenities
• Supply and demand

Whether you plan to sell through a real estate agent or as a For Sale By Owner (FSBO), understanding the available market evidence can help you make a more informed decision about your property.

An appraisal does not guarantee a particular sales price. The eventual sale price can be influenced by market conditions, buyer demand, marketing, negotiations, financing, concessions, and other factors.

8. Evaluate an Investment or Recently Renovated Property

Residential real estate investors may benefit from an independent valuation when purchasing, refinancing, renovating, or reviewing an investment property.

For recently renovated properties, the amount spent on improvements does not necessarily equal the amount added to market value. An appraiser analyzes how the market responds to the property's improvements by examining comparable properties and other relevant market evidence.

Depending on the assignment, valuation may address the property's as-is condition or an appropriately defined as-repaired scenario.

DiCicco & Associates provides residential investment property appraisal services for investors throughout Southeast Florida and Metro Atlanta.

9. Support a Home Equity or HELOC Decision

Homeowners considering a Home Equity Line of Credit (HELOC) or other home-equity financing may need an updated valuation of their property.

A professional appraisal provides an independent opinion of market value based on the property's characteristics and current market evidence. The lender ultimately determines loan eligibility, terms, and the amount of financing available.