When buying or selling a home, there are several steps you will need to complete before you can officially close on the property. One of these steps is a home appraisal.
What is a Home Appraisal?
A home appraisal is when a third-party, unbiased, professional evaluates your home to determine the value of the property. Lenders typically schedule the appraisal to ensure that they are not lending more money than the house is worth. If the appraisal comes back low, the transaction is typically delayed or the buyer will be required to make up the difference.
3 Things to Know About Home Appraisals
To prepare you for this step in the real estate transaction, here are three things you need to know.
1. The Appraiser Looks at More than the Condition of the Home
When the appraiser comes to your house, he or she will do a thorough inspection of the property. They will take into account the areas of the house that need repairs or that are poorly maintained. However, this is not the only factor that matters. The appraiser will also look at how much similar homes in the neighbourhood have recently sold for, the current real estate market, the location of the property, and more.
2. The Appraisal is Mandatory
There are steps in the buying or selling process that are optional such as a home inspection. These options are available to ensure you are making a wise decision but they are not necessary. However, an appraisal must be done. It is one of the first steps in the closing process and typically, the lender will hire an appraiser and schedule the appraisal for you.
3. Pricing Your Home Accurately Can Save Headaches Later On
No matter if you are the buyer or the seller, you do not want a delayed sale. One common holdup in the real estate transaction is the appraisal. If the appraisal comes back lower than what the buyers have agreed to pay, lenders will often halt the sale or the buyer will be required to make up the difference. If the appraisal happens during the conditional period, the buyer could still accept the deal or walk away. If it’s already a firm deal, the buyer cannot walk away and would need to make up the difference.
To prevent any complications, sellers must accurately price the home. Buyers should also give realistic offers. For help with these processes and decisions, it is best to work with an experienced and qualified real estate agent in Markham.
No matter if you are buying or selling a home in Markham, real estate agent Martin Macfarlane is ready to assist. Call today to begin the buying or selling process.