Enter the new appraisal ($) and the old appraisal ($) into the Calculator. The calculator will evaluate the Appraisal Hike Percentage.
Appraisal Hike Percentage Formula
AHP = (NA - OA) / OA * 100
Variables:
- AHP is the Appraisal Hike Percentage (%)
- NA is the new appraisal ($)
- OA is the old appraisal ($)
To calculate the Appraisal Hike Percentage, divide the difference between the new and old appraisal by the original appraisal amount, then multiply by 100.
How to Calculate Appraisal Hike Percentage?
The following steps outline how to calculate the Appraisal Hike Percentage.
- First, determine the new appraisal ($).
- Next, determine the old appraisal ($).
- Next, gather the formula from above = AHP = (NA – OA) / OA * 100.
- Finally, calculate the Appraisal Hike Percentage.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
new appraisal ($) = 200
old appraisal ($) = 100
FAQs
What is an appraisal in real estate?
An appraisal in real estate is an unbiased professional opinion of a property’s value. It is used by lenders to ensure that the property is worth the loan amount. It can also be used for tax assessments, investment analysis, and to determine the selling price of a property.
Why is the Appraisal Hike Percentage important?
The Appraisal Hike Percentage is important because it shows how much the value of a property has increased or decreased over time. This information can be crucial for homeowners, investors, and financial institutions for making informed decisions about selling, buying, or lending against a property.
Can the Appraisal Hike Percentage affect my mortgage?
Yes, the Appraisal Hike Percentage can affect your mortgage, especially if you’re looking to refinance your home. A significant increase in your property’s appraisal value can lead to better mortgage terms, including lower interest rates, because it decreases the loan-to-value ratio, which is a critical factor lenders consider.
How often should a property be appraised?
The frequency of property appraisals can vary depending on several factors, including market conditions, changes in the property (such as improvements or damages), and the purpose of the appraisal. However, it’s generally advisable to get a property appraised whenever you’re considering selling, buying, or refinancing a property, or if there has been a significant change in the market.
