An appraisal is a valuation tool used to verify a property's value. The mortgage industry relies upon a qualified independent real estate appraiser to guide them in their financing decisions. But this is not the only reason to get an appraisal. Many homeowners, attorneys, builders, buyers and sellers utilize appraisals for a variety of needs:

PMI Removal
Private Mortgage Insurance or PMI is the supplemental insurance that many lenders have to purchase when the amount being loaned is more than 80% of the value of the home (LTV loan to value). After a rise in values and/or payment to principal goes below this 80% level PMI is no longer required. United States Congress passed a law in 1998 (the Homeowners Protection Act of 1998) that requires lenders to remove the PMI payments when the loan-to-value ratio conditions have been met. An appraisal is required to determine the property's value. The cost of the appraisal is recovered in just a few months of not paying the PMI.

Property Tax Assessments
Challenging the tax assessment has become a necessity in many parts of the country. Unfortunately, most people go into the process without the proper tools. They may pull some information from the Internet to support their claims, but have no real basis for their claims. A real estate appraiser can provide the accurate answers to the question of value. An appraisal from a qualified real estate appraiser would be a step in the right direction in any dispute with your local tax assessor’s office.

Estate Planning
In times of loss, it is often difficult to think of the various steps that must be taken to resolve any outstanding monies of the deceased. An appraisal is required to establish fair market values of any real estate properties in the estate for tax filings and any presentation to multiple heirs. The aid of an appraisal is a necessity to dispose of the estate properly.

Divorce
In unfortunate circumstances, such as divorce, appraisals are required so that both parties involved receive a fair and impartial value so that they can concentrate on more important aspects of this difficult time. An appraisal by a qualified independent professional third party is often required by state law to settle the divorce.

Selling a Property
When it comes time to sell your property some times it is better to get the opinion of a real estate appraiser that has no financial gain in the transaction of your home being sold. Your home may be unique to your market area, for example the largest or smallest home. By enlisting a certified real estate appraiser you will get a non-bias opinion of value to help aid in determining a fair sales price for your home.

Bankruptcy
An appraisal may be needed when one is going through bankruptcy proceedings as an aid in determining the equity in a property.