Common Reasons You Might Need a Property Appraisal

You’ve probably heard of a home appraisal, if not, let me break it down for you.

Let’s imagine you’ve saved up for ages and are finally ready to buy a house. After weeks of scrolling listings, you’ve found the one. It’s not too small, and the commute to work won’t have you questioning your life choices during rush hour.

But here’s the big question: how can you be sure the asking price is fair?

That’s where an appraisal comes in. An appraiser is like a detective for real estate. They inspect the property and determine its value, giving you a clearer picture before signing your money away on the dotted line.

But did you know there is more than residential appraisals? In this article, we’re diving into other common types of appraisals you might not know about, (but may need later).

What is your office space really worth?

Not only homebuyers need appraisals, these are just as essential for businesses evaluating commercial properties. Imagine your favorite café, the one where you splurge on that overpriced yet irresistible latte.

At its core, a commercial appraisal isn’t much different from a residential one. You hire a real estate appraisal firm to establish the value of a property you’re looking to buy or sell or to determine the rental price for a property you own.

Also, if you’re growing your business and applying for a commercial loan using property as collateral, an appraisal is crucial. It will give you a sense of how much a bank is willing to lend, or what the property could sell for in the worst case scenario.

How much money can you get from the house?

We all know property prices are through the roof right now (bad pun intended). When you first apply for a mortgage, you’ll likely need an appraisal to examine the property’s value.

But mortgage appraisals aren’t just for first-timers. If you’re refinancing, whether it’s your second mortgage or more, you’ll need an appraisal too. This will show how much your property value has changed over time.

Think of it like checking the value of your car before trading it in. If it’s worth more, you could score a better deal. If it’s worth less, well, you might need to rethink your next move. Either way, an appraisal helps you make smarter financial decisions.

No need to fight over Grandma’s estate

Losing a loved one is never easy, and handling their estate is overwhelming. If you inherit property from them, an estate settlement appraisal is necessary. It helps determine the property’s value for tax purposes or when dividing assets among heirs.

During this emotionally challenging time, you can rely on a property appraiser to provide you with an objective point of view of the property’s worth. This way, you’re not left in the dark about the value of what you are inheriting.

Whether you plan to sell, keep the property, or simply need to understand its value, the appraisal can guide you through the next steps. One less thing to worry about during an already difficult time.

Who gets to keep the house?

Divorce is messy enough, but dividing assets doesn’t have to be. If you and your soon-to-be-ex bought a house together, you’ll probably want an appraisal. Whether you sell the house and split the proceeds or one of you buys the other out, getting an accurate property value is essential.

Think of the real estate appraiser as the neutral party in this tricky situation. They’ll provide an unbiased value of the property, helping you figure out what each party is entitled to. After all, the real battle might be over who gets the expensive air fryer, but at least you’ll have the home’s value sorted out.

An appraisal can help avoid unnecessary conflict, especially if emotions are running high. It ensures that both sides clearly understand the property’s worth, making the process smoother. Plus, it can prevent one party from feeling like they’re getting the short end of the stick.

Taxes, taxes, and more taxes.

When selling real estate, calculating capital gains can be more complicated than it seems. If you’ve inherited or received one as a gift, you may not know its original price. This is where a capital gain appraisal comes in.

A certified appraisal helps determine this property’s value at the time it was acquired, so you can properly calculate your capital gains. This ensures you’re following tax guidelines, especially when reporting gains to the Canada Revenue Agency (CRA).

By getting a precise, detailed report, you can avoid potential tax issues and provide necessary documentation if needed. It’s a crucial step for making sure your tax filings are accurate and stress-free.

Don’t know where to begin? We got you

No matter what type of property transaction you’re involved in, getting it appraised is something you need to get done.

At Appraisal Hub, your trusted Toronto-based appraisal company, we offer fast and accurate appraisal services tailored to your needs. Our 100+ 5-star reviews in Google speak for themselves.

To know your property’s true value in record time, contact us today. We are here to support you every step of the way.