Why Get a Home Appraisal in Toronto
You may be applying for a home loan through banks or third-party financiers. In this case, your lenders may require a home appraisal of the property before they approve. Know more about the process of mortgage application on this site here. This is a typical process regardless of whether you are buying a new house or you’re in the process of refinancing your existing mortgage in Toronto.
A certified and licensed appraiser does home appraisals, and he’s the person who can tell the current value of your future house. This is an assessment based on the current market in Toronto, recent sales in the community, and an in-depth analysis of the property.
Many lenders may require a full appraisal report to help determine the risk of granting a home buyer loan. This home will serve as collateral if the borrower cannot pay the monthly mortgage and defaults out of the loan. It’s just the way of lenders to ensure that the liability is not going to be big compared to the house’s overall value.
Is Appraisal Different from House Inspection?
Both of these processes are essential in buying a property in Toronto. However, inspections and appraisals have different purposes.
When it comes to a home inspection, the contractor will check the attics, basements, roofs, and overall property condition. There will be photographs taken from top to bottom, and there will be reports about the plumbing, electrical wires, and the state of the appliances. There can be repair recommendations after the accurate description.
On the other hand, appraising a property is knowing more about its home value. The experts in Metrowide Appraisal can give you an accurate value on your home’s worth with the help of research and current market prices in your area. These people don’t make repair recommendations, but they can tell you why your home has increased in value in the last few years.
Costs and Fees
The overall costs can vary, but it can range from $200 to $400 depending on the home’s size. The national average is $336, and the fees can vary. Some checklists must be met and ensuring that the house is a secure investment and it will retain or even increase in value for the duration of the loan is a must.
The location fees can vary depending on the distance of the appraiser to the property. However, during the pandemic, many experts are now allowed to conduct their research at home, and some are not going into properties anymore.
These experts may rely on exterior views, interior decors, photos, market research, and other data to provide an accurate value. Fortunately, you can still buy and sell a house during COVID-19, and there are appraisers that you can contact to help you out with the relevant paperwork for the mortgage. Even if the lender has requested the appraisal, the mortgage applicants may still have to shoulder the fees as part of the overall costs.
Factors that Can Affect the Value
In the real estate industry, location is always an essential factor in assessing the value. A mansion in a shabby and decrepit place is valued lesser than a townhouse in a metropolitan area. The location is one of the factors that will dictate the worth and the amount of time it will take to resell the property.
It’s not necessarily just the neighborhood that will be assessed. The evaluation has more to do with the location of the specific lot in the area. The factor of a house that’s located in a peaceful cul de sac is going to be valued higher than a property that’s near a noisy hydrofield or major roadway.
Property’s Square Footage
The square footage is another thing that the appraiser is looking at when assessing the value. Read more about the calculation of square footage here: https://www.bankrate.com/real-estate/determine-square-footage-of-home/. They will want to know every livable space in the area, whether extensions can be made, the number of stories allowed, and more.
It’s important to know that the square footage will affect your home’s overall value, and this can determine the amount of property taxes that you’ll pay, so you may want to ensure that the figures for the square footage are accurate and coincide with your public records.
Other Things on an Appraiser’s Checklist
- Characteristics of the neighborhood
- Local market trends in Toronto
- Total square meters of the lot and home size
- Design and age of the house
- Materials used for the exterior and interiors
- Sales prices of other houses sold in the area
- Amenities like pools, decks, fireplaces, and more
- Renovations and home improvements done
Getting an Accurate Report
As the borrower of the mortgage and the one processing the fees, you have the right to see the fully completed report. You can do this a week or at least three days before the closing of the loan. It’s also a good idea to pay attention to the details in the report to check for the square footage’s accuracy, number of bedrooms, basements, and more.
Other Things they are Looking For
- Foundation should be sound, and the structure should be solid
- Water should not go near the foundation
- Utilities like heat, water, electricity, and sewage should be turned on
- Appliances left by the seller should be fully functional without posing as a hazard
- Outlets should be functioning
- The windows could close, open, and lock
- Roofing leaks should not be present
- No infestation of termites
- Paint should not be chipping, peeling, or flaking
- Vents and attics should be free from damage
- Mold growth should not be detected
- Adequate availability of hot and cold water
- Property should be free from excessive noise, foul odors, and other environmental hazards
These factors can increase the home’s value. Functioning electricity, amenities, and the absence of infestation are just some of the things that you must require in your future house. You can get a condo, rowhouses, or semi-detached dwellings and contact an appraiser to look for its current market value. The professionals’ eyes will ensure that you are not paying too much for your dream home.