If you need a home appraisal for a real estate transaction, you will surely have questions on your mind.
Below we present some of the most frequently asked questions about home appraisals to help you in your search.
What do home appraisers look at during the appraisal?
Home appraisers look at the value of other similar properties sold recently and current real estate trends. The amenities, number of rooms, floor plan, and the size of the home, improvements, and mechanical components also influence the appraised value.
Can a property fail in a home appraisal?
Most home appraisals performed are related to mortgage transactions. A poor appraisal of a property will mean that a mortgage application will be disapproved. It could also mean a lower loan amount approved by the lender.
What is the difference between the value of a property from a real estate broker and an appraiser?
Real estate brokers have a good knowledge of the real estate market and can give an insightful opinion on a home’s value. However, they usually base their estimation on the average prices of similar listings. Thus, the value is not as accurate as the estimate of a real estate appraiser who will consider the actual condition of the home.
How long does a home appraisal last?
The actual viewing of the property can be for just 3-4 hours but the completion of the appraisal report after viewing can take a few days.
What home renovations add the most value to a home?
Not all home renovations add value to a home. Certain projects provide more value than others. For instance, kitchen and bathroom renovations add more value than the addition of a swimming pool or landscaping. Some small-scale renovations can also add high value such as doors and window renovations, siding renovations, or energy-efficiency upgrades.
Is a home inspection and home appraisal the same?
A home inspection checks on the condition and size of the elements of the home including plumbing, heating, structure, roofing, etc. to form an evaluation of the home’s overall condition. The inspector will not provide a market value.
A home appraisal, in contrast, will assess the size, number of rooms, condition of the home, and compare it with other properties in the area to assign a fair market value.
Who issues the licenses of real estate appraisers?
In Canada, The National Association of Real Estate Appraisers (NAREA) licenses and regulates real estate and property appraisers.
When is a home appraisal done during a real estate transaction?
A home appraisal is done after the seller and buyer enter into an agreement for the purchase of a property.
Do most houses get appraised for the desired selling price?
Generally, houses are assessed close to the selling price, especially when the seller is represented by a reputable real estate broker. This is because sellers receive valuable advice from their brokers regarding comparable sales in the area. Some sellers, however, overestimate the value of their homes. When the selling price is higher than the appraised value, a buyer may withdraw the offer unless the seller lowers the price.