It is important to know the value of your home for a variety of reasons, including understanding its market value, making informed decisions about finances, and even determining your property tax assessment.
The question “How often do I need to update the appraisal of my property?” is a common one. In this article we will discuss the importance of regular updates to appraisals and provide advice and new ideas on how often property appraisals should be updated.
Market volatility and economic changes
Real estate is a dynamic market, and values change in response market conditions and economic changes. It is important to keep up-to-date with these fluctuations by updating the property appraisal on a regular basis.
Significant market changes, such as changes to interest rates, local conditions, or shifts of supply and demand can affect property values. Staying up to date on appraisals will allow you to make informed decisions about the current value of your property.
Property Improvements & Renovations
Update your property appraisal, especially if you’ve done significant renovations or improvements. Home improvements like adding an addition, renovating the home’s kitchen, or increasing energy efficiency can increase your property’s value. By updating your appraisal, you can accurately represent these improvements in current market value. This is essential when selling your property, re-financing it, or applying for a home equity line of credit.
Comparative Market Analysis CMA
A Comparative Market Analysis, or CMA, is a tool real estate agents use to estimate a home’s value using recent comparable sales. By regularly updating your appraisal, you can compare your property to recent sales in the area and determine its market value accurately. This information can be used to make financial decisions, negotiate sales or assess property taxes.
Changes in the Neighborhood and Surrounding Areas
The value of a property can be affected by changes in your neighborhood. Property values may be affected by changes in the neighborhood, new developments, improvements to infrastructure, changes in zoning, or shifts in neighborhood popularity. By updating your appraiser, you can include these external factors that could influence the market value. This information will be especially useful if you plan to sell your property or are considering other investment opportunities.
Property Tax Assessments
It is vital to regularly update your property valuation for accurate assessments of property taxes. Local tax authorities rely on appraisals of property to determine the taxable values of your property. By ensuring your appraisal reflects a current market valuation, you can avoid paying too much in property taxes and ensure an accurate assessment.
Conclusion
Regularly updating your appraisal is essential to staying informed about the current market value of your property and making informed decisions. Market volatility, economic change, property improvements and renovations as well as changes to the surrounding neighborhood can all impact property value.
By keeping your appraiser up-to-date, you can accurately reflect any changes and ensure that you have the best possible valuation. A current appraisal is a valuable tool when it comes to assessing your property tax assessment, selling your property or refinancing. Regularly updating your appraisal will help you stay informed and make good financial decisions based upon the current value of your property.