With how mercurial the real estate market is, prone as it is to nearly unpredictable shifts at a moment’s notice, even something simple as knowing the value of your own property can be tricky. That’s why if you really want an accurate answer to the question “What is my home worth?” an appraisal is your best option. 
Appraisals don’t come cheap, so you can’t just get one whenever you’re feeling curious. It’s important to know when the best time to get an appraisal, and the reasons why you should want to get one in the first place. Here, then, are five examples of times when knowing the value of your home is indispensable knowledge. 

Before You Sell Your Home 

When you sell your property, you want to make sure you get as much as you can for it. You certainly wouldn’t want to part with something for far less than it’ worth. While it’s true you can set your asking price however you choose to, that doesn’t buyers are going to agree with your valuation. Being able to back up your price with a professional appraisal, though, might just change their tune. 

Before You Buy a Home 

Just like a seller wants to make sure they’re earning as close to the value of their home as possible, a buyer wants to make sure they’re not being overcharged for a property that isn’t worth the price. If you’re the buyer, in this case, the home may not be yours yet but that doesn’t mean you can’t request an appraisal. It might seem like an inconvenience, but if it saves you from wasting way too much money, you’ll be happy you did it. 

Appealing Tax Assessments 

The way property taxes are calculated is largely based on a percentage of a house’s value. If you feel like your tax bill is too high, you may want to appeal it. Though the process of appealing tax assessments varies from place to place, having an independent appraisal of your property’s value often plays a major role in reducing your annual taxes. 

Refinancing a Mortgage 

If you’re having issues paying your mortgage on time, refinancing might be a helpful option. Essentially, refinancing a mortgage means replacing your old loan with an entirely new one, with different terms and interest. Since the cost of a mortgage loan is determined by the value of a property, getting a new appraisal can result in significant changes. If the value of your home has decreased, you can expect to a reduction in your mortgage as well. 

Using a Home as Collateral 

For most people, a house is the single most valuable item they own. That’s why, sometimes, when taking out a large cash or business loan, a lender might require you to use your home as collateral, something they can take and make money off of in the event that you default on your loan. In this case, getting an accurate appraisal is important for convincing the lender that investing in you is worthwhile.