Can I use service of an appraiser after I purchased a property conditionally?

Yes, It is a wise way to complete a real estate transaction. In-fact buying a house is the most expensive purchase for most people and hiring an appraiser will give the peace of mind to the potential purchaser. Having an appraisal clause protects the purchaser in the event the appraisal comes in below the agreed upon purchase price. If the appraised value is less than the purchase price, the purchasers now will have to come up with the difference between the appraised value and the purchase price if they are borrowing money from a lender.

Example Clause that can be added on the purchase and sale agreement: This offer is conditional upon the purchasers having an appraisal completed in the next five business days with the final estimate of value being either equal to or greater than the purchase price. If the appraised value is lower than the purchase price the purchasers shall have the sole right to cancel this transaction with all deposits being returned in full without any deduction or penalty and this offer shall become null.

How do we prepare for an appraisal appointment?

Prior you appraisal appointment it will be helpful to have your latest property assessment that was prepared by the Municipal Property Assessment Corporation (MPAC) available as this document can be extremely helpful for the appraiser as it contains: the year the dwelling was built, building size, lot size, legal description and assessment. Also If you have a builder’s floor plan make that available to the appraiser, Appraiser will take a picture of the plan and will attach it to the report.

It would be great making all rooms, basement, cold room, garage, sheds and out buildings accessible for appraisal inspection. The hydro panel and furnace area should be accessible for a quick inspection. It is always wise to make a list for the appraiser of any major upgrades that have been completed and try to include the year when the upgrades were completed and the approximate cost. If the appraisal appointment is during the winter season and there is snow make sure the appraiser has access into the rear yard. If there is a sale of a property that you would like to be considered in the report provide the appraiser with the address. At the end of the appraiser’s inspection ask if you can take a minute to review the room count, bathroom count and upgrades with the appraiser.

There are some houses similar to my property in the neighborhood currently listed for sale; can I assume my appraised value is the asking price of the similar properties?

Basically a real estate appraiser will base the appraised value on the Sold properties that are comparable with the subject property. The listed properties does not show the real appraised value of the properties, in some instances the realtors list the property some percentage over the real property value to leave some room for negotiations. Also some realtors intentionally list the property lower than fair market value to attract more offers. Therefore the list price can not reflect the appraised value of your property.

When to hire an appraiser?

• For any mortgage and real estate transaction
• When applying for a loan against a property
• For a tax assessment to reduce property taxes or to dispute improperly assessed taxes
• To settle an estate
• To determine the property value when selling your home
• To assist you with buying a home at a fair market price
• To settle legal disputes

For answers to your questions about appraisal in Richmond Hill please call us for more information.

What is in an appraisal report?

Depending on the type of report an appraisal contains:

• The precise purpose of the appraisal and the client’s objectives for the appraisal.
• The reported value of the property and how that value was interpreted.
• The date the appraisal takes effect.
• The characteristics of the property including, location, physical features, permanently installed items, legal attributes, and all facets that affect the valuation including, economic factors property rights and any known defects, restrictions, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature.

Who hires an appraiser?

Appraisers are frequently hired by lenders to establish the market value of a property for a loan transaction to ensure that the property is valued in the amount of the requested loan. Lawyers and accountants frequently hire appraisers to help determine property values in the course of divorce and estate settlements.

Real estate appraisal vs real estate inspection?

A Assurance Appraisals Inc. appraiser does not provide a home inspection but performs a third party investigation of all accessible facets of a property including structure and amenities, from roof to foundation and surrounding areas for the purposes of determining its value on the open market.

How do appraisers get information?

The data used in an appraisal report can be what is termed “Specific” or “General” and is gathered from Multiple Listing Services (MLS), tax records, Geowarehouse records and a range of other public documents and records. The appraiser compiles the data and comparative studies in combination with additional standard methods of analysis.