When you are purchasing a new home, you will want to know if you are paying the right price and if the condition of the home is as promised. If you are seeking a mortgage loan, lenders typically require a professional third party appraisal of the home to determine the lending value. A Canadalend appraisal report is also used to protect the lender’s interests; lenders require some assurance or security for the loan they provide and therefore require an appraisal report on the property.
What is a Home Appraisal?
A home appraisal is an estimate of the fair market value of the home. An appraisal report is a multi-page detailed report that documents the condition of the home. The appraisal is typically performed by a licensed individual who is trained to render an opinion concerning property values. Home appraisers use recognized and supportable methods for determining the value of the property, while remaining unbiased.
What do appraisers look for?
According to the Canada Mortgage and Housing Corporation, the appraisal process includes a professional assessment of the property’s physical and functional characteristics. The process is often governed by the following steps:
- The appraiser will tour the inside of the home and make notes on the things they see
- Appraisers use a checklist and go through each room
- They may take photos of the interior of the property if they have permission
- Appraisers look at the number and the size of the bedrooms and bathrooms
- The appraiser will consider the material used in the interior construction of the home (walls, flooring, windows and doors may be inspected)
Do appraisers only look at the interior?
Appraisers also spend time outside of the property, inspecting the structure of the home, the foundation, siding, and quality of the roof — this is all to determine both materials and condition.
How does a Canadalend appraisal report benefit me?
It is important to recognize that although the lender usually requires the appraisal, a Canadalend appraisal report actually functions as protection for the homebuyer. The appraisal report may come in higher than the price of the home. As a buyer, you will benefit immediately because you will have more equity in the property than originally thought. On the other hand, if the appraisal report comes in lower than the sale price, you will need to carefully consider all options available to you as a buyer.
The expert team at Canadalend utilizes years of experience and a wide range of strong relationships with experts in the financial industry in order to provide clients with an excellent quality of service. Contact us today to get in touch with a mortgage specialist and take advantage of your home appraisal options.