HOW MUCH IS YOUR HOME WORTH
YOUR GUIDE TO
THE HOME APPRAISAL
You have found your dream home and now it is time to cross
all your T's and dot all your I's before it’s all your own. And one of the
first items on your closing checklist the home appraisal. So, what exactly is
that?
The home appraisal is essentially a value assessment of the
home and property. It is conducted by a certified third party and is used to
determine whether the home is priced appropriately.
During a home appraisal, the appraiser conducts a complete
visual inspection of the interior and exterior of the home. He or she factors
in a variety of things, including the home’s floor plan functionality,
condition, location, school district, fixtures, lot size, and more. An upward
adjustment is generally made if the home has a deck, a view, or a large yard. The
appraiser will also compare the home to several similar homes that were sold
within the last six months in the area.
The final report must include a street map showing the
property and the ones’ compared, photographs of the interior and exterior, an
explanation on how the square footage was calculated, market sales data, public
land records, and more.
After it is complete, the lender uses the information found
to ensure that the property is worth the amount they are investing. This is a safeguard
for the lender as the home acts as collateral for the mortgage. If the buyer
defaults on the mortgage and goes into foreclosure, the lender generally sells
the home to recover the money borrowed.
FURTHER READINGS:
- "How Much Will A Home Appraisal Cost" - JUSTCO.CA
- "Find An Appraiser" - APPRAISAL INSTITUTE OF CANADA
- "8 Factors That Can Affect Your Appraisal For Better Or Worse" - TORONTO STOREYS
- "Important Info For Buyers: Bank Appraisals - Toronto" - GETWHAT YOUWANT.CA
- "Difference Between A Home Appraisal and a Current Value Assessment" - BLOG.REMAX.CA