Looking to purchase a property, and want to ensure you’re not overpaying?
A house appraisal is a crucial component of the home-buying process and should not be overlooked, especially if you’re considering purchasing a property off-market.
House Appraisal by National Appraisals
A house appraisal is an unbiased opinion of the fair market value of a property provided by a qualified and experienced real estate appraiser. When a buyer knows how much a house is really worth, he or she is less likely to overpay for a home. In the case of a house purchase or refinance, it also provides assurance to the lender that it is providing the borrower with an adequate amount of financing.
Which Factors Influence the Value of a Home?
When determining the value of a property, an appraiser considers a variety of factors. They can significantly enhance the value of the residential property and the value the seller will receive for it. Therefore, before purchasing a home, it is necessary to have an appraisal to ensure that you’re not overpaying for the property, and understand what the market comparables are.
Here are a few examples of common considerations:
Comparable Properties
An appraiser at National Appraisals looks at previous sales of similar properties, particularly those that are comparable in size and location to the property being considered for sale. Two properties are truly never the same unless they’re built by the same builder, have identical similar floor plans and material quality, and are located on the same street in the same neighbourhood.
Condition of the House
The overall condition and age of a house are taken into consideration by our appraisers. This covers everything from the interior material quality and basement development and various other factors. All of these factors assist National Appraisals in developing the final estimate of value.
Location of the House
An appraiser takes into account the home’s location, which may include access to amenities or other notable characteristics, as well as the school district ratings and the home’s accessibility to public transit options. The most important factor with the location of the house is the neighbourhood its in.
Lot Size Measurement
Lot size information is given to us by the municipality or the land registry system, and it allows us to understand what the land value is that the property sits on.
Upgrades
If a house has undergone significant upgrades, such as expansions or renovated rooms, the appraiser will take it into consideration as well. It will significantly affect the purchasing and selling price of the property.
The Appraisal Process
National Appraisals provide a thorough appraisal service to let you decide the true value of your property. It helps you do so in the following ways:
- Provide a general evaluation of the residence.
- Concentrate on whether or not the agreed-upon purchase price of the house is in accordance with what it is really worth.
- Comparing the home’s characteristics and condition to those of comparable recently sold houses.
Checklist For Obtaining a Purchase Appraisal
- Examine the property prices and recent sales in the area
- Determine the current state of your chosen house so that you can budget for any required repairs in advance
- Include an appraisal condition in your offer so that your offer may be withdrawn if the appraisal proves that you have provided an above market value offer to the seller.
The Advantages of Getting an Appraisal
Here are some examples of how an appraisal may be beneficial to you:
- It contributes to the advancement of the mortgage approval procedure
- It ensures that you are not paying more for the house than the house is really worth in the first place
- If the appraisal comes in lower than anticipated, you may be able to negotiate a reduced selling price for the property in question
FAQ
Why should I get an appraisal before buying a home privately?
An appraisal gives you an unbiased opinion of the property’s fair market value, so you are less likely to overpay or be underpaid on the selling side. It is especially useful when you are buying off-market, where there is no listing process to test the price.
How does a purchase appraisal help with mortgage approval?
Lenders use the appraisal to confirm that the property supports the amount of financing they are providing. A completed appraisal can also move the mortgage approval process forward.
What factors affect the value of a house?
Appraisers look at comparable sales of similar properties nearby, the condition and age of the house, its location and neighbourhood, lot size from municipal or land registry records, and upgrades such as expansions or renovated rooms. The appraisal checks whether the agreed purchase price lines up with these factors.
What if the appraisal comes in lower than my offer?
You may be able to negotiate a lower purchase price. If your offer includes an appraisal condition, you may also be able to withdraw when the appraisal shows you offered above market value. Ask your real estate lawyer or agent how to word the condition.
Should I include an appraisal condition in my offer?
We recommend it. An appraisal condition lets you step back from the deal if the appraised value comes in below your offer. Before you write the offer, review recent sales in the area, check the current state of the house, and budget for any repairs you expect.
Is an appraisal the same as the value my real estate agent gives me?
No. An agent’s comparative market analysis is a free estimate used to help set a listing or offer price, and it can rely on non-arm’s length sales. An appraisal is an independent, detailed valuation that accounts for material quality, renovations, and the true age and condition of the property.
Contact us today and get a quote.
