When purchasing a home, one of the steps that must be completed before your closing date is a home appraisal. This step is mandatory and is completed after an offer has been placed and accepted on the home. Continue reading to learn more about a home appraisal and what this essential step entails.
What is a Home Appraisal?
An appraisal is when an unbiased individual, known as an appraiser, enters your home to determine its worth. An appraisal is used to determine if the purchase price of the home is accurate. Typically, the lender will schedule an appraiser or has one that works with the lending company. They want to make sure that they are not financing the property for more than it is worth.
If the price of the home is more than the home’s actual value, you may experience a delayed sale. The appraiser may also find problems with the home that will need to be repaired or will affect the value of the home. Appraisal issues are one of the leading causes of delayed sales.
What Does an Appraiser Look For?
When appraisers look through your home, there are several factors that they take into consideration. For example, they will look at the square footage of the home, the number of bathrooms and bedrooms, the type of materials the home is made from, etc. General upkeep of the home is also greatly considered. Items such as chipped paint, stained floors, poorly maintained gutters, etc., can affect your value.
However, an appraiser does more than simply look at the house. There are many external factors that are taken into consideration. These include the following:
- The lot size
- The location of the house
- The neighborhood and nearby properties
- Vehicle storage
How to Prepare Your Home for an Appraisal
If you are selling your home, there are several things you should do to prepare for this essential step. You will want to gather as much paperwork and receipts as possible on upgrades throughout the house. You should also take the time to repair damage throughout the home.
In addition, if you are buying the home, you will want to be prepared financially. An appraisal can cost between $300 to $500. The buyer will pay for this expense and it is typically included in the closing costs of the home. However, this is a cost that can be negotiated during the offer.
If you have any questions about the buying or selling process in Markham or you are ready to enter the market yourself, give Markham real estate agent Martin MacFarlane a call today.