With the real estate market coming out of the pandemic-induced slump, now is the time to start looking for your dream home. Once you find it, you may be asked by your mortgage company to get a professional appraisal. Why is this, and what is an appraisal? In the following article, we will look at what an appraisal is and why you may need one, what the appraiser will consider, and how best to find the right appraisal company for you. Let’s begin by talking about why you need a professional appraisal.
Why Get a Professional Appraisal?
First, to get an idea of how appraisals work in more detail, we have looked at Metrowide Appraisal, a typical company operating in and around Toronto. So, why do you need a professional appraisal?
The real estate market fluctuates due to various influential factors. This could be the state of the economy or – right now – the effect the covid-19 pandemic has had on the market. Let’s say you’ve found the home you are looking for in Toronto. You’re happy with the agreed price, and you go to your mortgage broker, who finds you a deal that everyone is happy with like everyone is happy with kickass torrent. Then, the lender asks for an appraisal. Why?
There are many factors involved in valuing a home, so let’s look at how an appraisal works and why you need a professional one to satisfy your lender.
How an Appraisal Works
Right now, the Canadian property market is undergoing a boom, which is a welcome change to the past 18 months. An appraisal is useful not just for you – the buyer – but also for the lender. Bear in mind your mortgage lenders are taking a risk. If you find yourself in a situation where you can no longer keep up the repayments, the mortgage company takes the property.
They need an appraisal to confirm they are lending the right amount of money for a property of that value or more. Let’s talk about what an appraiser will take into account.
What’s Involved in an Appraisal?
When you contact an appraisal company to request an appraisal, they will agree as per a convenient time for the appraiser to visit. The appraiser will be a professionally qualified individual with knowledge of the housing market and expertise in the current values of properties in the Toronto area. Let’s look at the areas of your home they will be looking at to arrive at an accurate valuation.
Number and Sizes of Rooms
The appraiser will take note of the number of rooms on the property so that everyone can watch their favorite movie. This will include living rooms and kitchens (should there be more than one) plus bedrooms, bathrooms, and any other rooms of note within the home. They will also measure the rooms for size to arrive at the full footage of the property. The more bathrooms and bedrooms, the greater the value of en-suites, and additional baths are highly prized.
Views and Locality
Where your home is and what it is surrounded by also has an impact on the value. This relates to the garden or grounds the home is situated within and to the general locality. Some regions of Toronto command a higher price than others. Waterfront properties, for example, tend to be more valuable. Homes that are next to a major railway or road may hurt their value.
Condition Inside and Out
The overall condition of the property will also make a difference. The appraiser will look at the condition and age of the fixtures and fittings. For example, new and modern bathroom fittings can greatly affect pushing up the value of a property. Paintwork and décor will be examined, any flooring and the condition of doors and windows will also come into account. The latter is perhaps the biggest influence on property prices as they play a part in insulation and energy consumption.
The appraiser will also look at the outdoor space for an idea of the condition and age of fencing, for example, other buildings, fixtures, or fittings in and around the garden. All of this is for the benefit of you – the buyer – and to give the seller an idea of where they need to make improvements if they wish to get the asking price.
How your home is heated and the state and age of the heating and air conditioning systems will also be examined. The more modern and frequently maintained, the more value they bring. Older systems that will need replacing soon are going to knock the value down.
Added Value Amenities
Extra additions such as a shower or wet room, a conservatory, sheds, and outhouses, plus a pool, hot tub, or other luxuries will positively affect the property’s value. Finally, access and off-street parking are also highly valued, especially in the busier areas in and around Toronto.
We thought we’d finish with advice as to why choosing a local property appraisal company makes a lot of sense, so let’s quickly run through the reasons.
Why You Should Choose a Local Property Appraisal Company
A local Toronto appraisal company will not only be useful in advising you the right time to buy but also in guiding homeowners on when to sell their property. For this reason, they will have expert knowledge in what property is on the market and when. Local expertise also means they have a full understanding of the market where you wish to buy.
If you have found your dream home and want to go ahead and get a mortgage quote, the first thing you should do before you agree to a price is to talk to a property appraisal company. The small fee for an accurate appraisal could save you a lot of money.
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