Trustworthy Home Appraisals
In the case of a mortgage appraisal, Appraisal Hub Inc. has the unique ability to protect the interests of the buyer, the seller, and the lender with an unbiased, accurate property appraisal.
Mortgage appraisals are the most common type of appraisals, as thousands of properties are bought and sold each month in Ontario alone. With thousands of appraisal reports completed yearly, Appraisal Hub Inc. is proud to be a company that lenders and individuals in Ontario rely upon for accurate home estimates.
What is a Mortgage Appraisal?
Let’s say you’re buying a property. You make an offer, and the seller accepts. In most cases, you’ll have to finance the purchase by applying for, and receiving, a mortgage loan from the bank. A key consideration here is that every party knows the accurate value of the property:
Mortgage lenders want to know that the loan it’s approving isn’t more than the property is worth. If the bank knows the market value of the property, it can better use the property as collateral should you be unable to pay your mortgage.
You benefit from a certified appraisal because it’s in your best interest to know how much the property you’re buying is worth. If your offer is accepted, and you find out you’re overpaying, you need to know in time to renegotiate the price of the property.
Often, a seller will have an appraisal done before they list their property on the market in order to know where to set the starting price. If this hasn’t happened before an offer is accepted, the certified appraisal will be helpful to the seller as well.
Why Mortgage Appraisals?
In the case of a real estate transaction, the vast majority of mortgage lenders will insist on an inspection. Many lenders have appraisal companies (like Appraisal Hub Inc.) that they use primarily when they order appraisals, simply due to the desire to work with a trustworthy partner on issues that concern their financial wellness.
Basically, if a loan is worth more than the market value of the home, the bank may not be able to recover their investment in the event that the buyer defaults on the mortgage. In some cases, the buyer may have to set up the appraisal themselves, and depending on the lender, the costs may be covered by the buyer as well.
The Appraisal Process
A member of our appraisal team will walk through the property, taking note of anything that may raise or lower the value in our final report. For example, this may include the condition of the structure, the age of the roof, the condition of the HVAC system, and more.
Next, we will determine which of the three approaches to value (Direct Comparison Approach, Cost Approach, and the Income Approach) is the most relevant for that property type. For example, let’s say the property being appraised is a residential three-bedroom home. We’d look at other similar homes with three bedrooms, and use their sale prices and characteristics to determine the value of the property. When we generate an evaluation for a mortgage loan, we’ll complete an appraisal report that reflects the accurate market value of the property in question in order for the lender to set a loan amount.