"The price of light is less than the cost of darkness."
Arthur C. Nielsen
We bought our house during the housing boom.
However, soon after, we, like many others, experienced the "housing crash" which left our house "underwater." In addition, because we didn't place the full 20% down towards this big step of home ownership we were assessed PMI insurance (private mortgage insurance).
Subsequently, we have been paying this insurance for many years.
However, even though home prices rebounded, our PMI insurance was still required unless we reached a threshold of that magical 80% or less still owed on the home. This ratio is based on the value of the home's appraised value that was listed when we refinanced the mortgage to the amount still owed on the home.
Consequently, to remove the PMI requirement, we were informed that an appraisal was required. When I was informed that this was a requirement I groaned inwardly.
I didn't want some stranger coming into our house to poke around, take pictures, inspect the premises and provide an appraisal or value of the home based on their findings. Of course, comparison of comparable sales in our neighborhood was taken into consideration, but still is this really necessary?
Probably sounds strange to think this way, but somehow I felt that my privacy was being compromised.
I was caught in a dilemma! Should I go through with the appraisal to review the worth or value of our home or should we continue to pay an unnecessary expense?
Well, I swallowed my pride and authorized the appraisal.
The day arrived along with the appraiser, pictures were taken, measurements were recorded, carbon monoxide and smoke alarms were noted and the appraisal came and went without too much anxiety.
The results concluded that the home appraised value was sufficient enough to cancel the PMI. Subsequently, I am happy because we have more money in our pocket.
The correlation for the business owner and this PMI story is that more often than not, an "appraisal" of one's business can be valuable. This "appraisal" can include the teamwork component, the lines of communication within the organization, strategic planning processes, goal setting, leadership training, etc.
Often as business owners we feel that we have "got this." But often an official "appraiser" needs to be summoned to either verify that our business operations are producing maximum effectiveness or in need of some moderate adjustments.
It is the process of engaging a review to increase revenue.
Call us today with further questions. We at With Purpose can be your official "appraiser." We bring the appropriate tools, knowledge and experience to review your business in an effort to increase revenue through our appraisal process.