What’s a Home Appraisal in Real Estate — and Can I Skip It?

Are you buying or selling a home? Are you considering taking out another mortgage or refinancing an existing one? Then you’ll want to meet with credible appraisers in Toronto for a home appraisal. Appraisal firms can provide an unbiased and accurate property appraisal to help buyers, lenders, and sellers make informed decisions.

Q: I am applying for a home loan. Is a home appraisal required?

In most cases, yes. When you apply for any home loan—whether you’re buying a new home or want to refinance your mortgage—the lender will likely require a property appraisal.

A home appraisal is often mandatory for traditional lenders like banks because they want to ensure that you’re not over-borrowing. After all, if you default on the mortgage, they need to sell the property and recover the money they lent you. Appraisal services protect them from lending more than they may be able to recover.

An appraisal company will assign a qualified appraiser to create an unbiased report based on their in-person inspection, current market trends, recent sales of similar homes, and other aspects of the property to determine the appraisal value. The loan application may be cancelled or processing delayed if the appraisal value is lower than expected.

Q: I am buying a property. Should I have it appraised first?

Yes. As a home buyer, you can benefit from a certified home appraisal in Toronto because it’s always in your best interest to know the real value of the property before buying it. If you find out that you’re overpaying, you can renegotiate promptly.

Q: I am selling a house. Can I skip an appraisal service?

You can, but you probably shouldn’t. As a seller, you can certainly benefit from property appraisal by a qualified appraisal company. It can help you set a realistic asking price for your home, which can in turn help you sell your home more quickly. In addition, an appraisal can also help you avoid any potential problems that could arise during the sale process.

For example, if you were to list your home without first having it appraised, you may end up overpricing it. This could lead to your property sitting on the market for months without any offers. Worse, you could end up having to accept a low offer just to get rid of your property. On the other hand, if you underprice your home, you could end up leaving money on the table—money that could have gone towards your next home or investment.

Whether you’re refinancing, buying, or selling a home, it’s best to work with leading appraisal firms in the Greater Toronto Area like Appraisal Hub Inc. A proper appraisal can help you avoid potential pitfalls. Don’t skip it.