What is a home appraisal, and why do you need one?

A home appraisal is an impartial, professional opinion of a home’s value. To determine fair market value, a property appraiser will consider the condition of the home, its location, square footage, age, amenities, upgrades, and recent sale prices of comparable properties.

Once an appraisal has been completed, the appraiser will prepare a report with their findings. Typically, an appraiser’s report will include the following:

• A street map of the property that was appraised and the comparable properties used in the appraisal
• Square footage calculation
• Photos of the home’s interior
• Photos of the building’s exterior, including the street views
• Photos of the exterior of the homes used for comparison
• Recent sales data, land and tax records
• Any other details considered when determining the value of the property

When is a home appraisal required?

If you are applying for a loan to purchase or refinance a home, most lenders will require an appraisal. After you have been approved for a mortgage and you have made an accepted offer on a home, the lender must approve the property before the transaction can move forward. Lenders do this to ensure they don’t loan money for a property well below the value of the accepted offer. That way, if the borrower defaults on the loan, the lender can repossess the property and sell it to recoup their money.

The lender or mortgage broker will be the one to select and hire a home appraiser. While a borrower is within their rights to request a second appraisal of the property they wish to purchase, you should note that it is the appraisal ordered by the lender that will count in a mortgage transaction.

Even when a lender orders an appraisal, the borrower is usually the one to pay for it.

Buyers who are purchasing a home with cash will not be required to obtain an appraisal. However, if you wish to use personal funds to buy a home, it would still be wise to get an appraisal to ensure you do not overpay. If you are selling your home and want to ensure you list it at the right price, you may order an appraisal then as well.

Home appraisals in Vancouver

If you need a home appraisal in Vancouver, contact us at Adlaw Appraisals Ltd.

Adlaw Appraisals Ltd. is an appraisal firm that was founded on the pillars of integrity, accuracy, and speed. With offices in Vancouver and Kelowna, we proudly serve the Greater Vancouver area (from Whistler to Chilliwack) and the Central Okanagan area (from Vernon to Penticton). It is our mission to assist the decision-makers in our communities to make smarter and faster decisions when it comes to real estate values. By providing exceptional service and accurate appraisal reports, Adlaw Appraisals is a reliable partner for lending institutions, law firms and private individuals.

Get in touch with us today to learn more about our home appraisal services.