26 Jul 3 Reasons you Might Need an Appraisal
Paying for an appraisal may seem unnecessary, but they can actually be invaluable in terms of the knowledge that they provide. Appraisals can help both buyers and sellers act with confidence. The following are just a few of the many situations in which an appraisal can be beneficial:
Knowing how much your land, home and personal property are worth and having a concrete document to back it up is helpful in situations where you may not know the true value going into the sale. As a seller, having an appraisal gives you confidence in your home or property’s value and prevents someone from taking advantage of you by offering an unreasonably low amount.
On the other hand, buyers can also benefit from appraisals as they help you to avoid overpaying beyond what a home or item is worth. This can be especially important in the case of antiques or other items which might be subject to counterfeiting or in cases where you are hoping to buy something to resell as an investment.
Having an appraisal done also saves hurt feelings in situations where you might be selling to family and friends. Coming to an agreement on price with a family member can be tricky to do without leaving someone feeling like they got“ripped off”. Having an appraisal done can alleviate this, because it puts the price determination in the hands of an objective third party.
In situations where an estate or other personal property needs to be divided up, it is critical to know the value of all the parts to come up with a fair distribution plan. Whether the division is due to the loss of a loved one or you are experiencing divorce, emotions are bound to be high for all parties involved. Having thorough appraisals done on every piece can help make sure that your family does not experience any more pain than they already have.
By knowing the value of the items given to each family member, you can make sure that proper compensation is given by those who received the larger value items to those who may have received less. This information can be used in advance for estate planning to avoid the appearance of favoritism or it can be used during the division of the estate itself to make sure that all assets are divided fairly.
This can be particularly critical in instances where a child might inherit something substantial, like a family business or farm, that would be hard to put a dollar amount on without a proper appraisal.
If you are hoping to get a home or business loan, your bank will likely require an appraisal of the house or business that you are purchasing. Knowing that the home or business is valued at what you are paying for it is important to the bank in case you would fail to pay them back and they would need to recover their costs.
Appraisals can also help you to determine your net worth which can help you navigate life changing financial decisions with more clarity and confidence. It’s easier to take a chance on that new business venture when you know that you have $100,000 in assets that could be sold to help pay for your child’s college in a pinch.
Knowing the worth of your home, business, and personal property is also beneficial for insurance reasons. If your home or business fell victim to a natural disaster, it would be easy to account for the value of the building itself but what about everything else. It’s important to know that you have enough coverage for not just the building, but also the $400,000 you’ve invested in technology at your business or the $10,000 antique wedding ring that you inherited. Appraisals can help you document the valuables associated with your home or business so that you can make sure that you are covered and that you are able to recover your costs in an emergency.
Who to Contact?
Krueckeberg Auction & Realty hosts a wide variety of auctions year-round. This experience gives us a unique perspective and gives us a leg up in determining the accurate value of homes, farmland, personal property, business assets, and more. If you are interested in an appraisal of any kind, click here to fill out our appraisal request form orcall us for more information at 260-724-7402.