Lenders will typically require you to do a home appraisal when applying for a loan, whether you are refinancing your mortgage or in the market to buy a house. That’s because they want to determine how much risk is involved in the deal. You will have to work with a property appraiser who is ideally from one of the top appraisal firms in Toronto. These professionals have the tools, knowledge, and experience to provide the services you need and support you in your efforts to get the best loan that fits your needs and situation.
Who conducts the appraisal and why?
Only a certified and licensed property appraiser can conduct a home appraisal, which is essentially a report detailing their opinion on the value of the property in question. The findings of the appraisal can depend on different factors, particularly the appraiser’s judgment, a property analysis, and research on the recent sales of similar or comparable homes in that area.
Appraisal firms can provide the results your mortgage lender needs to determine your risk and determine if the property is enough as a collateral, should you default on the loan. Lenders essentially want to make sure that the loan amount is proportional to the value of the property.
How does an appraisal differ from a home inspection?
Licensed home appraisers from appraisal firms explore a property inside and outside, which can make it seem like they are doing a home inspection. However, their services have a different purpose. With an appraisal, the goal is to assess the value of the home. Appraisers will consider the property’s condition as an aspect of its worth, along with other factors like the local housing market. But it’s not their responsibility to recommend repairs—that’s the job of home inspectors do.
How is an appraisal done?
Someone from the appraisal company will visit the property and walk through it while taking notes of elements that may reduce or increase its value. They will also determine if a cost approach, income approach, or direct comparison approach is best for the type of property being assessed.
When you get a home appraisal, Appraisal Hub protects the interests of all parties involved: the buyer, lender, and the seller. With our help, you can obtain an accurate and unbiased property appraisal in Toronto.