Though the majority of house appraisals are made in advance of a real estate purchase, there are plenty of other reasons they may be ordered. A reduction in property tax burden is probably the second-most common occasion for an appraisal, as homeowners must pay yearly fees in accordance with city and state laws. Oddly, most owners never think to dispute their assessments, even though their figures are often wildly inaccurate.

Another common impetus for house appraisals is the securing of loans, especially the "home equity" variety. These loans are made by lending institutions against the equity built up in a given property, or the amount that the owner can claim as his or her own. Obviously, the higher the value of the house, the more money its owner may qualify to borrow. If he or she is eyeing a second house, namely as an investment, a home equity line may be the only way to go.

Other Reasons for House Appraisals

House appraisals may also be requested in the settling of an estate, whose heirs are struggling to divide up assets. It's easy for the deceased's smaller, tangible belongings to be divvied up among sons, daughters, brothers, sisters, and spouses, but what about a residence or, worse, residences? It's not as easy as having each heir lay claim to a fraction of the house. Oftentimes a home must be sold and its revenues split up, which means arriving at a fair market value for that home first.

You may also find yourself embroiled in a lawsuit or under scrutiny from the IRS. A judge can order house appraisals, as can tax workers and other government officials if they deem one necessary. When that happens, the cost of those appraisals is left to the individual, not paid for by the state or city, so it's helpful to know where to go to find inexpensive but reliable assessments.